As consumer spending on luxury goods wanes, Michael Kors has seen its UK revenue drop sharply over the past year.
A decline of 10% in the label’s British sales was recorded for the fiscal year ending in April, with physical retail sales taking a hit. On the brighter side, Michael Kors noted a robust performance in its e-commerce sector, according to a report by This is Money.
Facing rising costs for raw materials, Michael Kors has hinted at the potential for further escalating its prices. This consideration follows a previous average price increase of 6% enacted by the brand last year.
Last year’s disappointing financial outcomes occur amidst a broader trend of shrinking consumer expenditure within the high-end market sector, following an initial spike post-pandemic.
In a similar vein, British luxury brand Burberry reported a significant downturn with a 36% fall in its annual operating profit, totaling to £418 million. The competitive market conditions played a role in this downturn.
For Burberry, the situation was exacerbated by a 12% decrease in like-for-like sales during the concluding quarter of the fiscal year, which negated earlier profits. Consequently, annual revenues dropped by 4%, finishing at £2.9 billion as of March 30th.
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