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Michael Kors (Nasdaq: KORS) | Company Profile, History, Competitors

 

Michael Kors  (NASDAQ: KORS) is a luxury fashion retailer in the United States. The company has two brands: Michael Kors and Jimmy Choo. As of 2017, Michael Kors had 1,011 store locations. The company was founded in 1981 and headquartered in New York, NY.

Michael Kors was founded in 1981 by the designer Michael Kors. In 1981, Michael Kors launched his first women's label at Bergdorf Goodman under the Michael Kors company brand. Michael Kors manufactures a collection of luxury clothing, handbags and accessories. In 2017, the company acquired Jimmy Choos for $1.2 billion.

Business Overview

The company operates in two main segments:
  • Michael Kors: The namesake fashion brand by the founder.
  • Jimmy Choo: The fashion shoe brand acquired by the company in 2017.

Michael Kors Segment

Michael Kors offers three primary collections:

Michael Kors Collection The luxury line that is carried in retail stores and upscale department stores like Bergdorf Goodman and Neiman Marcus.

MICHAEL Michael Kors The accessories brand in handbags, footwear and apparel. The line is carried in Michael Kors lifestyle stores and department stores like Macy's, Nordstrom, Galeries Lafayette and Printemps.

Michael Kors Mens The men's collection under the Michael Kors brand.

As of 2017, the brand has 829 retail stores and sells wholesale domestically through 1,403 department store doors and 875 specialty store doors and internationally through 218 department store doors and 1,048 specialty store doors.

Jimmy Choo Segment

Jimmy Choo is a luxury fashion brand acquired by Michael Kors in 2017. jimmy Choo is a British fashion house that specializes in shoes, handbags, accessories and fragrances. The brand was founded in 1996 and manufactures the majority of its products in Florence and Veneto regions of Italy.

As of 2017, the brand has  182 retail stores and sells wholesale to distribution partners through 629 wholesale doors.

Suppliers and Distribution

Michael Kors uses a variety of contract manufacturing relationships around the world. The largest manufacturing contractor is in China.

Michael Kors has one distribution facility in California and one in Holland. It also has smaller distribution centers operated by third parties in China, Hong Kong and Taiwan.

Jimmy Choo products are manufactured by specialists in Italy. Jimmy Choos has one distribution facuity in Switzerland where products are shipped around the world.

Competitors

Under the Michael Kors brand, the main competitors are Coach, Louis Vuitton, Tory Burch, Prada, Kate Spade and Calvin Klein.

Under the Jimmy Choo brand, the main competitors are Christian Louboutin, Manolo Blahnik, Salvatore Ferragamo, Tod's, Christian Dior, Prada and Chanel.

History

In 1977, Michael Kors enrolled at the Fashion Institute of Technology in New York City. He dropped out to join Lothar's where he was designer for the store. In 1981, Michael Kors launched his first women's label at Bergdorf Goodman under the Michael Kors company brand.

In 2000, the company opened his first store on 76th Street and Madison in New York City. In 2002, he launched the Michael Kors Mens collection.

In 2004, the company launched is MICHAEL Michael Kors accessories, foot year and apparel collection.

In 2006, the company launched its first lifestyle store and its online website. In 2011, the company went public.

In 2017, the company acquired the Jimmy Choo shoe brand for $1.2 billion.

Management

John D. Idol (CEO): John Idol serves as CEO since 2003. Prior, he was CEO of Kasper Asl, a women's suit manufacturer. He had also served as CEO of Donna Karan and COO of Ralph Lauren.

Thomas J. Edwards (CFO): Thomas Edwards serves as CFO since 2017. Prior, he was CFO of Brinker International, CFO of Wyndham Hotel Group, VP Consumer Innovation at Kraft and VP Finance at Nabisco Foods.

Financials

 $ USD in millions    2013    2014 2015 2016 2017 2018
 Revenues $2,182 
$3,311 
$4,372 
$4,712 
$4,494 
$4,719 
 Gross Profit $1,307 
$2,016 
 $2,648 
 $2,797 
 $2,661 
  $2,859 
 Operating Profit $630 
$1,008 
 $1,257 
 $1,175 
 $690 
 $749 
 Net Income$398 
$662 
$881
 $839 
 $553 
$592 
 EPS$1.97 
$3.22 
$4.28 
$4.44 
$3.29 
 $3.82 

Michael Kors Holdings Ltd.
 
  Type     Public
  Ticker     NASDAQ: KORS
  Industry Retail
  Founded 1981
  Headquarters New York, NY
  Locations 1,011 (2017)
  Revenues
$4.7bn (2017)
  Employees 14,846 (2017)
  Website michaelkors.com