Aug.6 - Profits jumped 82 percent at Michael Kors. The luxury brand is hitting the mark with high-end and aspirational consumers thanks to its laser focus on the right product mix for its core consumer. Bobbi Rebell reports.
Michael Kors is strutting its stuff. The luxury brand's high-end accessories hit the mark - profits up 82 percent- and the company sees more good times ahead. It's about a laser focus on their core customer says fashion industry veteran Michael Londrigan, Dean of Academic Affairs at fashion business focused LIM College: SOUNDBITE: MICHAEL LONDRIGAN, DEAN OF ACADEMIC AFFAIRS, LIM COLLEGE (ENGLISH) SAYING: "They control their products. They control their SKU's very economically. They look at the market. They find the products that they think are best for the consumer." Consumers are responding. Same store sales were up 25 percent in the US. Rival Coach sales fell about 2 percent in the U.S. Kors is popular on Wall Street too. Its stock has had an amazing run: up more than 60 percent in the last year. Kors is also big online: Michael Kors is the most searched for American fashion brand- capturing close to 20 percent of total brand searches according to the Digital Luxury Group. The company says it expects e-commerce to reach 10 percent of sales. And now they are looking to further expand abroad: SOUNDBITE: MICHAEL LONDRIGAN, DEAN OF ACADEMIC AFFAIRS, LIM COLLEGE (ENGLISH) SAYING: "The international growth I think is where we are going to see the continued growth for the next few years. They are opening up new markets- Brazil, India these are areas that are untapped. There are quite a few people there that have a lot of money, aspire to luxury products. American brands like a Michael Kors is really hot right now with those folks." Even in Europe- where consumers still face tough times- sales more than doubled.