Michael Kors Tries to Get Back on Track With Jimmy Choo Deal
Not too long ago, Michael Kors (NYSE: KORS) was one of the hottest fashion brands in the United States. However, Michael Kors has fallen on hard times recently, as its over-reliance on discounting finally started to hurt its brand image and pricing power. Management hopes that buying the exclusive Jimmy Choo shoe brand will help get the company back on its feet.
In this episode of Industry Focus: Consumer Goods, the team takes a look at Michael Kors' recent woes, along with its strategy to become a multi-brand fashion house, following the lead of Coach (NYSE: COH). The Jimmy Choo deal has high potential -- but only if Michael Kors can resist the urge to use big discounts to drive short-term sales gains.
A full transcript follows the video.
Source: Fool.com
