Michael Kors has seen sales in Britain fall as customers rein in their spending on expensive handbags and clothing
Cut back: Customers have limited their spending on expensive handbags
Michael Kors saw its UK sales fall sharply last year as customers limited their spending on expensive handbags and clothing.
The American brand, founded in 1981, counts celebrities and political figures such as Reese Witherspoon, Taylor Swift, Michelle Obama and Hillary Clinton among its fans.
Turnover in Great Britain fell by a tenth. The company said in-store trading was lower, but online transactions had been strong in the year to April.
Michael Kors also warned it could raise prices further after a rise in the cost of basic materials.
The brand, named after the designer and self-made billionaire, increased prices by an average of 6 percent over the past year until April 2023.
It comes as the luxury industry adjusts to consumers spending less after a period of blockbuster trading in the wake of the pandemic.
Michael Kors bought shoe brand Jimmy Choo in July 2017 for almost £900 million and just over a year later he bought Versace for £1.6 billion.
Shortly after the Versace acquisition, the three brands were merged into a parent company called Capri Holdings – which is valued at £3 billion on the New York Stock Exchange.