Shadow company: Michael Kors
Korean women who are conscious about trends have been into Michael Kors accessories recently. As my friends said, Michael Kors bags are one of luxurious items among people and it has taken over Coach which was popular in Korea. In New York, I see at least five people carrying Michael Kors bag. Michael Kors’ awareness has been rising last two years since they started spending about $30 million dollars in advertising. Having 227 stores not only in North America but in other countries, their retail sales during the quarter soared 67% to $332.6 million and they are expected total revenue to be in the range of $515 million to $525 million. Their stock price is $61.50 on February 13th, 2013.
Before I read the company’s history, I thought Michael Kors started business with accessories because my generation usually talks about bags, wallets or watches. However, according to “Business Insights: Essentials”, he went to FIT in New York City for about an year and dropped out and worked at Lothar's, a boutique in Manhattan. In 1980, he was spotted by Bergdorf Goodman's fashion director and led to the display his woman’s clothing design. He began making his mark and fill orders for Bergdorf's in 1981 and at the same year he became independent by himself. In 1991, he got licenses to sell clothing. It seems he had a good start because company revenues of $8 million in 1990 were projected to grow to at least $35 million in 1991. In 2002, Sportswear Holdings Ltd., a firm owned by Silas Chou and Lawrence Stroll, purchased about 85 percent of Michael Kors L.L.C. at the end of the year for a reported $100 million. He joined a TV show, Project Runway, in 2004 as a fashion judge and many people liked him due to his wit and acumen. Also, he started to aim to young customers with lower-price accessory line called MICHAEL Michael Kors. Kors was named CFDA accessory designer of the year in 2006 and sales reportedly reached $400 million in 2007.
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