Nov. 5 - Michael Kors' revenue jumps 39 percent as the economic recovery spurs demand for his luxury accessories in the U.S. and Europe. Fred Katayama reports.
Luxury is in again, and Michael Kors is cashing in. Quarterly revenue at the fashion designer's company jumped 39 percent as customers snapped up more of his trendy handbags, watches, and shoes. And Kors upped its earnings forecast again for the full year. Quite a turnaround for a company that bounced back from bankruptcy two decades ago. The economic recovery is spurring demand for luxury goods in the United States and Europe, where Kors' sales more than doubled. Kors is aggressively expanding its retail store network as it converts department store premises into mini stores called "shop-in-shops." It has been successful marketing itself as a "lifestyle brand," something its arch rival Coach is trying hard to replicate but with less success. Kors' stock shot up at the market open, adding to its 47 percent gain this year. Coach, whose quarterly profit and revenue fell, is off 8 percent. Kors', whose items are worn by first lady Michelle Obama and celebs like J-Lo, moved into new territory last week. It became the first to post an ad on the social media site, Instagram.