One of the biggest challenges most brands face is how to expand their business – without killing it in the process.

The hurdle is even higher for luxury brands.

A pillar of ‘luxury’ is exclusivity, which is the opposite of ‘scale’.

Yet when demand is soaring and the market is hot, it’s difficult to resist the urge to grow – and grow fast.

Michael Kors is one of many brands that found itself on exactly that trajectory.  

From its launch in the 80s as ‘accessible luxury’ for urban women, to its expansion into menswear, a broad range of accessories, licensing and entry into outlet malls – to its controversial acquisition of Versace in 2018 – the Michael Kors balloon just kept getting bigger, until it burst.

For fiscal 2024, Capri Holding, Michael Kors parent company, reported total revenue fell 8.4%, with Michael Kors revenue down 9.2%.  In 2024, operating losses were $241 million. 

In its Q1 2025 (ended July 2024) revenue was down 13.2% to $1.07 billion.  The company showed a net loss of $14 million.   Revenue for the Michael Kors brand was down 14.2%.