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Michael Kors to sell 3 million shares in Michael Kors Holdings Inc Wednesday, 20th February 2013
American fashion designer Michael Kors has announced that he intends to sell 3 million of his shares in Michael Kors Holding Incs, decreasing his stake in the company from 3.9 percent to a total of 2.4 percent. The Michael Kors brand has seen great success over the last few years, success which is expected to continue throughout 2013.
Luxury retailers remain resilient in the face of downturn Wednesday, 15th August 2012
The luxury sector has remained resilient at a time when many high street retailers are finding themselves against the wall or on the shelf as the tense economic climate shows no signs of letting up.
British demand for luxury handbags outstrips every other nation Tuesday, 3rd July 2012
New research finds Britain has the ‘highest affinity’ for luxury handbags, outpacing the appetite for luxury in the US, France, Japan and Italy. The World Luxury Index found than when measuring demand against each market’s internet population, the UK scored the highest with 422 searches for luxury handbags per 1000 internet users.
Michael Kors announces $900m IPO Monday, 5th December 2011
Michael Kors Holdings Ltd. has announced it plans to prepare an Initial Public Offering (IPO) in New York, with the aim of raising around USD 900 million. The luxury fashion brand has set a price range for the offers at USD 17 to USD 19 a share, with plans to sell 41.7 million shares. Michael Kors Holdings currently has 169 stores in North American, with another 34 in Europe and Japan.
U.S. retailers look to Europe for success Sunday, 17th July 2011
U.S retailers are moving over to Europe at an ever increasing rate. The weakened U.S. economy and worries about jobs have consumers spending less which is forcing American retailers to look abroad for growth. Fashion retailers such as Abercrombie & Fitch, Gap and Forever 21 have all opened stores across Europe this summer with more planned for the future. But why are U.S. retailers so keen to set up shop on this side of the Atlantic?
According to new research by property consultants CB Richard Ellis, 1.9 million square meters (20.5 million square feet) of new shopping-center space was built in Europe in 2010, down 36% from the previous year, even after development fell 30% in 2009. “A shortage of new shopping centres being built in Europe restricted the expansion plans of retailers in 2010,” CBRE said in a statement.
In spite of this, the U.S. retailers that are expanding abroad include some of the biggest names in the business. Banana Republic, for example, is expected to open its first French store this year. In 2010, Apple opened its largest flagship store in the world in London's Covent Garden. Fashion retailers Tommy Hilfiger and Michael Kors have built flagship stores in Paris.
Other retailers on the move include Gap, which is opening stores in Europe and announced at the end of June that it would move into Africa with plans to open a Gap store in Egypt and Gap and Banana Republic stores in Morocco. Gap's moves mark a comeback after its unsuccessful attempts to establish a foothold in Europe in the 1990s; it ultimately closed all of its stores in Germany.
Meanwhile, Abercrombie & Fitch is going global with its namesake brand and its mass-market Hollister brand. In May, the fashion retailer charmed Parisians when it opened the doors of its first new flagship store on the posh Champs-Elysees, with more than 100 topless muscular male models adorning the entrance. The Paris store was the first of a series of new European openings planned over the next two years.
Abercrombie & Fitch is planning to open stores this year in Madrid, Düsseldorf and Brussels. Further openings are planned next year. Plans for Hollister are even more aggressive. The company opened 20 Hollister stores last year and intends to open an additional 40 this year, part of a plan to have as many as 185 stores in Europe.
The impact was felt strongly in the first quarter of this year, when international sales growth outpaced U.S. sales and drove an increase in Abercrombie & Fitch profits.
Even if American retailers find the space they want in Europe, it is no guarantee of success. In the 1990s, U.S. retailers also tried to set up shop in Europe, but some found it difficult to deal with complicated local regulation and high rents. Also, at the time, Europe had fallen out of love with American fashion.
Today, rents are still high, and regulation hasn't changed much. But there are signs that American clothing may be back in fashion.
The challenge has been to find locations. Abercrombie & Fitch originally intended to open 30 Hollister stores in Europe last year, but a spokesman said the company had to cut that goal by a third for administrative and organizational reasons. Abercrombie & Fitch put together a three-person European real-estate team last year to help with the search for space.
Analysts say the problem isn't just organization and suggest that U.S. retailers are running into a shortage of top-line retail space in Europe. "Hollister had difficulty finding locations. It appears that it is harder to find quality real estate in Europe," says Randy Konik, retail analyst with securities research firm Jeffries & Co.
The outlook is better in some countries than others. According to CBRE, the development pipeline is still "considerably smaller" than in 2007 and 2008 —the most recent peak in shopping-center development. But construction starts are rising in markets such as Turkey, Russia, and Poland. There are 146 shopping centers under construction in Europe today, says CBRE, and the highest level of activity is in Europe's emerging markets.
"The shopping center development market in Turkey has sprung back to life," Neville Moss, CBRE's head of retail research in Europe, the Middle East and Africa, said in a statement.
Many of the shopping centers that are under construction now are projects that were put on hold during the recession. Last July, Land Securities PLC got the ball rolling again when it began construction of the Trinity Leeds shopping center, the first major shopping center development in the U.K. since the recession. A Land Securities spokesman said the company was willing to go ahead with the project because 40% of the space was leased in advance of construction. With the center scheduled to open in two years, about 60% of the retail space has now been leased.
Another thing in Europe's favour is that American retailers are finding it easier to experiment and try new strategies in new markets than to revamp worn models at home.
"New concepts don't work in the U.S.," says Konik, the Jeffries analyst. "So in an effort to continue growing U.S. retailers are accelerating expansion in Europe."
Photos taken by My Retail Media featuring Gap Inc.'s Piccadilly Circus store.
Founders of Tommy Hilfiger consider investment in Michael Kors Tuesday, 28th June 2011
Joel Horowitz and Tommy Hilfiger may be about to invest in luxury brand Michael Kors as the company prepares to sell off around 25 percent of its equity in order to raise as much as USD 500 million to fund global expansion plans.
It is predicted that Kors, founder of eponymous label Michael Kors, may do a private placement followed by an IPO and it is estimated that the company could be valued at USD 2 billion.
According to Hilfiger himself: "Anybody would be crazy not to invest in it. Michael Kors is the next major global player in my eyes."
Michael Kors to work with Valiram Group for South East Asian expansion Wednesday, 20th April 2011
The fashion brand has announced a partnership with Valiram, a favourite with luxury groups entering the Southeast Asia region. With its store openings in Malaysia and Singapore scheduled for August, Michael Kors has teamed up with Valiram Group, the subregion’s leading luxury retailer. Chief executive officer of Michael Kors, John D Idol said: “We are excited to partner with a company that has a long history of growing luxury brands throughout Malaysia and Singapore.” The Pavilion in Kuala Lumpur will host Michael Kors’ first freestanding store in Malaysia. The 3,500 square foot boutique will hold ready-to-wear, handbags, small leather goods and accessories. Singapore will open its first Michael Kors store in the same month, found at luxury shopping centre Scotts Square, located in the city’s downtown shopping district.