• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick In federal trial, Michael Kors says it’s harder to sell handbags in TikTok and Taylor Swift era
Editor's Pick

In federal trial, Michael Kors says it’s harder to sell handbags in TikTok and Taylor Swift era

by September 17, 2024
by September 17, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

In a federal courtroom on Monday, storied fashion designer Michael Kors spoke about the steep challenge of staying relevant in a world where brands can rise and fall based on viral TikTok videos and photos of handbags on the arms of celebrities such as Taylor Swift and Beyoncé.

Kors kicked off the week of testimony in the antitrust trial in Manhattan as a Federal Trade Commission lawsuit seeks to block Tapestry’s $8.5 billion acquisition of Capri. The deal, if approved, would put six fashion brands under a single company: Tapestry’s Coach, Kate Spade and Stuart Weitzman, with Capri’s Versace, Jimmy Choo and Michael Kors. 

The FTC on Monday called Kors, who founded his namesake brand in 1981 at age 22 and still serves as its chief creative director, to testify. Yet, in his remarks, Kors described how even legacy brands like his own can struggle and lose shoppers’ interest.

“Sometimes you’ll be the hottest thing on the block,” he said. “Sometimes you’ll be lukewarm. Sometimes you’ll be cold.”

He acknowledged that his namesake label has fallen from favor and needs a refresh.

“I think we’ve reached the point of brand fatigue,” he said.

The FTC has argued that the combined companies, particularly with Coach and Michael Kors under the same owner, would create a bag behemoth with the power to hike prices for customers while offering them the same or worse products.

Attorneys for Tapestry and Capri, on the other hand, have questioned the FTC’s depictions of a consolidated handbag market. They have said competition has grown as customers consider both pricier luxury brands and lower-priced fast-fashion names, and can shop from online-only platforms and secondhand marketplaces.

The trial comes as consumers balk at high prices and when the outcome of the closely watched U.S. presidential election could change the federal agency’s strategy.

Shares of Capri, which includes Michael Kors, reflect the tougher stretch that the designer Kors described. As of Monday afternoon, the company’s stock has fallen about 24% so far this year. That trails far behind the roughly 18% gains of the S&P 500 and the approximately 17% rise of Tapestry.

In its most-recent fiscal quarter that ended in late June, Michael Kors’ revenue dropped 14.2% on a reported basis or 13.3% on a constant currency basis compared to the year-ago period.

Kors said he remains a student of the fashion industry and draws inspiration from spending time on store floors, talking to customers or people-watching at places such as airports. Even as an industry veteran, he said he must move nimbly.

For instance, he said he learned about Aupen, a handbag industry newcomer, when he saw a photo of Taylor Swift carrying one of the company’s handbags. When he went to the company’s website, it crashed, he said.

“It shows you the power of women like this,” he said.

In another testimony on Monday, former Macy’s CEO Jeff Gennette said retailers also feel it when brands lose some of their shine. Gennette, who retired early this year, said the department store’s sales got hit because it leaned too heavily on Michael Kors’ brand. He said the markdown of Michael Kors’ handbags contributed to “a bad spiral Macy’s was living through when I was there.”

The antitrust trial is expected to conclude on Tuesday with testimony by economists, including one for the FTC and one for the companies.

This post appeared first on NBC NEWS
You Might Also Like
  • Cryptocurrency ‘pig butchering’ scam wrecks Kansas bank, sends ex-CEO to prison for 24 years
  • Nvidia CEO Jensen Huang’s net worth swells from $3 billion to $90 billion in five years
  • As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern
  • Fibocom’s MediaTek-based 5G Module FG370-EAU Extending Leadership in FWA Market with Global CE and GCF Certifications
Share
0
FacebookTwitterPinterestWhatsapp

previous post
PlayDoge Game – Get The Latest News and much more
next post
How High Can Gold Prices Go? The Tools You Need to Spot the Next Big Breakout!

You may also like

Sateliot in Collaboration with Sensefinity To Launch 5G IoT Satellite...

January 17, 2023

The ‘funflation’ effect: Why Americans are spending on travel and...

June 27, 2024

Wendy’s will offer $3 breakfast deal as rivals such as...

May 21, 2024

First Republic bank says deposits tumbled 40% to $104.5 billion...

April 26, 2023

NYSE says technical issue fixed after Berkshire Hathaway wrongly falls...

June 4, 2024

Taco Bell to roll out AI drive-thru ordering in hundreds...

August 1, 2024

Trump not expected to carry through on Day 1 tariff...

January 21, 2025

RTX, GE Aerospace expect more than $1 billion tariff impact

April 22, 2025

Budget airline Spirit is trying to go upmarket — and...

July 30, 2024

The U.S. added 216,000 jobs in December, much better than...

January 7, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Bitcoin approaches all-time high after surpassing...

    March 5, 2024

    College seniors are graduating into a...

    May 6, 2023

    Sam Altman rejoins OpenAI board of...

    March 9, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here