The UK arm of luxury fashion brand Michael Kors has revealed plans to lower its prices after suffering a significant hit to its sales.
The division’s revenue took a 20 per cent hit in the year to 30 March, 2025, as it closed stores and it felt the impact of the cost-of-living crisis.
Michael Kors permanently closed shops in Newcastle, Milton Keyes and Manchester as well as a concession store in Harvey Nichols in London.
The company added that its prices are also expected to decrease “in the foreseeable future” in order to “better meet consumers demand and counter competitors’ strategies on the market”.
The update has been included in accounts for Michael Kors’ financial year to 30 March, 2024, which have been filed late with Companies House.
The accounts show that the firm’s turnover decreased from £77.1m to £70.8m in the 12 months while its pre-tax profit jumped from £40.4m to £66.1m over the same period.
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On that financial year, Michael Kors said: “The overall result of the period reflects sustainability of the global ‘Michael Kors’ brand, where despite the level of competition and the current challenges in the economic environment affecting the UK retail sector, Michael Kors continues to be a profitable business.”
Michael Kors forms part of Capri Holdings which also includes Versace and Jimmy Choo.
In August 2023, the group was acquired by Tapestry, the American fashion giant behind luxury brands such as Coach and Kate Spade in a $8.5bn (£6.6bn) deal.
In December 2024, the UK arm of Versace reported a turnover of row £19.1m for the 12 months to 31 March, 2024, down from £23.8m.
Over the same period, its pre-tax profit also declined from £314,862 to £112,895.
At the weekend, Reuters reported that Italian luxury group Prada is to make a decision this week about a potential takeover of Capri Holdings.
