The Michael Kors brand has become synonymous with jet-set luxury, and it’s easy to see why. The American designer is renowned for creating stylish handbags, shoes and women’s ready-to-wear that blend modern sophistication with effortless cool. The coveted leather bags come in shoulder, cross-body and clutch styles that are perfect for daytime outings, evening events or even a weekend getaway.
But despite the brand’s success, recent sales have been less than stellar. The retailer has struggled to maintain its luxury image as more consumers opt for purses from other brands, and the popularity of resale marketplaces like Rebag and The Real Real are further damaging the appeal of flashing a designer bag. The ubiquity of the bags has also led to an erosion of their prices, with some shoppers willing to purchase one for a fraction of the original price.
In the latest earnings report, Kors CEO John Idol admitted that the company had “lost its cache” and said it would cut prices to attract more buyers. And while that may be good news for bargain hunters, it’s bad news for the brand’s reputation. As a result, the company’s shares fell nearly 4 percent Thursday morning.michael kors handbag sales