Cutting back: Customers have reined in their spending on expensive handbags
Michael Kors saw its UK sales plunge sharply last year as customers reined in their spending on expensive handbags and clothes.
The US brand, which was set up in 1981, counts celebrities and political figures including Reese Witherspoon, Taylor Swift, Michelle Obama and Hillary Clinton among its fans.
Sales in the UK were down by a tenth. The firm said trading in stores was lower but that online transactions had been strong in the year to April.
Michael Kors also warned it may hike prices further after a rise in the cost of basic materials.
The brand, named after the designer and self-made billionaire, raised prices by an average of 6 per cent in the previous year to April 2023.
It comes as the luxury industry is adjusting to shoppers spending less after a period of blockbuster trading in the aftermath of the pandemic.
Michael Kors bought the Jimmy Choo shoes brand for nearly £900million in July 2017 and snapped up Versace for £1.6billion just over a year later.
Shortly after the acquisition of Versace the three brands were folded into a parent company called Capri Holdings – which is valued at £3billion on the New York Stock Exchange.
