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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Fashion & brands

Michael Kors warns of price hikes as UK sales tumble

Michael Kors suffered a sharp decline in its UK sales last year as customers reduced their spending on expensive handbags and clothes.

UK sales of the US designer brand dropped by 10% over the past year, driven by a drop in in-store trading.

Online transactions are said to have remained strong during the year up to April.

Michael Kors is now considering further price increases to help offset the decline amid a rise in material costs.

Prices have already been hiked by an average of 6% in the previous year up to April 2023.

This move comes as the luxury sector adjusts to decreased consumer spending following a period of high post-pandemic sales.

Michael Kors acquired Jimmy Choo for nearly £900 million in July 2017 and Versace for £1.6 billion just over a year later.

These acquisitions were consolidated into a parent company, Capri Holdings, which is valued at £3 billion on the New York Stock Exchange.

Capri Holdings shares lifted 2.3% on Monday.

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