So, the first real aura faded let Michael Kors is the big environmental factors, coupled with its base not only increases the capacity of the North American market and let Michael Kors's SSS growth michael kors uk situation can not arise again, and Michael Kors eyes will be more Multifocus Europe and emerging markets, in fact, the group's Q2 revenue increased 108.6% Europe to $ 237.9 million, of which 41.1% same-store increase; the Japanese market increased by 106.3% to $ 16,455,000 revenue, same-store sales increase of 52.9%.
So what is the second reason?michael kors london I believe that many ordinary readers can also guess: Cheap.
Michael Kors's "Cheap" Whether as a luxury price, nearly two years of popularity and popularity, its gross margin reflects the current situation, including its rate of expansion in Europe and Japan,michael kors bag but also to lead the brand to become more Cheap, Think about it, is a three-digit growth in what circumstances? That Europe, the number of stores as of the previous fiscal year to 80, and this will increase 55 fiscal year, an increase of up to 70%, in addition to the presence of electricity supplier business, which have led to high inventory Michael Kors, an increase of has continuously exceeded growth in sales. Although the stock has some expansion factors exist, but Michael Kors too optimistic for sales growth this year, Q1 had come through a number of discount promotions, marketing margins.
From the point of view of Q2 Earning Call, John Idol also noted that "Cheap" issue, referring to the gross margin, he said that the holiday season is not Michael Kors to increase sales through a lot of promotion, although this will increase the expense of SSS, But "Our competitors michael kors bags uk are the world's best brands, such as Louis Vuitton, Louis Vuitton, Prada, such as Prada, Gucci Gucci for example." And in an interview with Bernard Arnault or repeatedly publicly expressed Michael Kors with Louis Vuitton Louis Vuitton is not of the same industry, suggesting that Michael Kors hardly a luxury.
Michael Kors John Idol announced "no discount" strategy, if not actual policy, at least a publicity strategy. Bernard Arnault has been declared as Louis Vuitton Louis Vuitton, like high-end strategy, in fact, Louis Vuitton Louis Vuitton products accounts for only a small number of high-end, low-priced products still rely on sales profits, michael kors bags sale only a few paragraphs is to promote the role of high-priced products, a small amount of production, which are is an open secret in the luxury goods industry only.