Michael Kors Announces A Push Into Men's Wear
Michael Kors will announce a new president from a “very successful large global men's company” to lead the men's business within the next 30 days. The company expects to launch a new men's fragrance by the fall. The company will also make a big push on watches, accompanied by significant advertising.
“We see there is a huge opportunity, so over the next 24 months, you are going to see a significant push in the men's business, we have a very clear vision of who the Michael Kors man is,” said John Idol, Michael Kors' Chairman and CEO during the company's conference call on February 4. “I think you will start to see that resonate in our advertising, both in print, outdoor and then of course online on our website and socially.”
Michael Kors will be operating in a highly competitive environment. Its largest competitor, Coach (NYSE: COH), said that it expects its men's business to post $700 million in sales this year, up about 20 percent from last year.
While Kors has demonstrated its ability to steal market share from Coach in the women accessories and handbag market, it will be an uphill battle against Coach, whose men's division is rare bright spot for the company.
“We're also continuing to drive our men's business globally, through new standalone and dual gender stores, and by dedicating more space for a broader men's assortment in existing retail stores,” said Victor Luis, Coach's CEO in a conference call on January 22. “In the second quarter, Coach's sales of men's bags and accessories increased nearly 20 percent globally.”
The battle for men's wear will be a heavily contested one in the global stage. The question remains: will Michael Kors successfully steal market share in the men's department from Coach and other retailers to delight shareholders even further?
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