Michael Kors Holdings Limited operates as a designer, marketer, distributor, and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks ‘MICHAEL KORS’, ‘MICHAEL MICHAEL KORS’, and various other related trademarks and logos. Segments The company operates through three segments: Retail, Wholesale, and Licensing. As of March 29, 2014, its Retail segment included 288 North American retail stores, including concessions; and 117 international retail stores, including concessions, in Europe and Japan. Its Wholesale segment included wholesale sales through approximately 2,496 department store and specialty store doors in North America; and wholesale sales through approximately 1,232 department store and specialty store doors internationally. The company partners with wholesale customers, such as Bergdorf Goodman, Saks Fifth Avenue, Neiman Marcus, Holt Renfrew, Bloomingdale’s, Nordstrom, and Macy’s in North America; and Harrods, Harvey Nichols, Selfridges, and Galeries Lafayette in Europe. These relationships enable the company to access various major consumers in a targeted manner. The company’s relationship with Fossil Partners, LP. has helped the company to create a line of watches and jewelry. In addition, the company has agreements with non-manufacturing licensees who have particular expertise in the distribution of fashion accessories, footwear, and apparel in specific geographic territories, such as South Korea, the Philippines, Singapore, Malaysia, Indonesia, Australia, the Middle East, Russia, Turkey, China, Hong Kong, Macau, Taiwan, Latin America and the Caribbean, and India. Collections and Products The company offers two primary collections that offer accessories, footwear, and apparel, such as the Michael Kors collection and the MICHAEL Michael Kors collection, both of which are offered through its Retail and Wholesale segments. It also offers licensed products primarily through its Retail segment. The Michael Kors Collection In the Michael Kors collection, the company offers accessories, including handbags and small leather goods, majority of which are made from leathers and other exotic skins, footwear and apparel, including ready-to-wear womenswear and menswear. The MICHAEL Michael Kors Collection The MICHAEL Michael Kors collection has a focus on accessories, in addition to offering footwear and apparel, and is carried in all of the company’s lifestyle stores, as well as department stores throughout the world. In the MICHAEL Michael Kors collection, it offers accessories, primarily handbags, which are created to meet the fashion and functional requirements of its consumer base, and small leather goods, such as clutches, wallets, wristlets and cosmetic cases; footwear in women’s styles; and womenswear, including dresses, tops, jeans, pants, skirts, shorts, and outerwear. Licensed Products Watches: Fossil is the company’s watch licensee. Watches are sold in its retail stores and by its licensing partner to wholesale customers in addition to select watch retailers. Eyewear: Marchon is the company’s eyewear licensee and would remain its licensee through December 31, 2014. Beginning in January 2015, Luxottica Group would become its licensee and would continue to develop eyewear inspired by its collections. The company’s eyewear products are focused on status eyewear with sunglasses serving as a key category. Eyewear is sold in its retail stores and by its licensing partner to wholesale customers in addition to select sunglass retailers and prescription eyewear providers. Jewelry: Fossil is the company’s fashion jewelry licensee. Its jewelry product line is complementary to its watches and accessories lines, and includes bracelets, necklaces, rings, and earrings. Its jewelry is sold in its retail stores and by its licensing partner to wholesale customers in addition to other specialty stores. Fragrances: Estee Lauder has been the company’s women’s and men’s fragrance licensee. Fragrances are sold in its retail stores and by its licensing partner to wholesale customers in addition to select fragrance retailers. Business Strategy The company’s business strategy includes increasing its brand awareness; expanding its retail store base in North America and Europe; expanding North American shop-in-shop footprint at select department stores; increasing global comparable store sales; and improving international retail and wholesale businesses. Intellectual Property The company owns the Michael Kors and MICHAEL Michael Kors trademarks, as well as other material trademark rights related to the production, marketing and distribution of its products, both in the United States and in other countries in which its products are principally sold. Seasonality The company experiences certain effects of seasonality with respect to its wholesale and retail segments. The company’s Wholesale segment experiences its greatest sales in its third and fourth fiscal quarters (year ending March 2014) while its first fiscal quarter experiences the lowest sales. Its Retail segment experiences greater sales during its third fiscal quarter as a result of Holiday season sales. In the aggregate, however, with the exception of its first fiscal quarter, which experiences less sales volume relative to the other three quarters, the company does not experience quarter-to-quarter fluctuations in its sales. Governmental Regulations The company is subject to other international trade agreements and regulations, such as the North American Free Trade Agreement. Accessories, footwear, and apparel sold by the company are also subject to regulation in the United States and other countries by governmental agencies, including in the United States, the Federal Trade Commission and the Consumer Products Safety Commission. Similarly, accessories, footwear and apparel sold by the company are also subject to import regulations in the United States and other countries concerning the use of wildlife products for commercial and non-commercial trade, including the U.S. Fish and Wildlife Service.
michael kors holdings ltd (MKO:Berlin)
Unit 1902, The Gateway
Tsim Sha Tsui,
Phone: 852 3928 5563
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To contact MICHAEL KORS HOLDINGS LTD, please visit www.michaelkors.com. Company data is provided by Capital IQ. Please use this form to report any data issues.