Michael Kors Will Not Offer Discounts During Holiday Season

By Elena Lopez Elena.Lopez@mstarsnews.com | Nov 04, 2014 01:21 PM EST

While other retailers will be fighting to win shoppers' dollars this holiday season by offering major discounts, the CEO of Michael Kors, John Idol, says the brand isn't taking a promotional posture. Essentially, the company isn't willing to devalue its status as a luxury brand for the short-term benefit of stronger holiday sales.

Fashionista reports, after recording revenue growth of 43 percent in the first quarter of fiscal 2015, sales at Michael Kors held steady in the second quarter, which ended September 27, rising 42.7 percent relative to the year prior to reach $1.1 billion. Europe continues to be a massive growth driver for the company, with revenue in the region jumping 108.6 percent to $237.9 million. Japan's sales also increased 106 percent to $16.5 million.

Growth in North America, Kors' largest and most developed market, was solid but more modest. The region brought in $802.2 million, a 29.8 percent boost, with comparable store sales growing 11 percent. Kors seems to be aligning itself with the Hermès and LVMHs of the world.

"I know there's concern about North American comp store [sales], but we're reaching levels that are more sustainable," Idol said. "North America has plenty of growth left for us."

The Kors team is also sitting tight through the holiday season in the U.S. Idol expressed his concerns about mall traffic in the next few months, noting that consumers already appear to be "slightly more conservative" with their spending this year. "I don't think that's only in our case," he added.

Kors has relocated its principal offices from Hong Kong to London, in order to maintain its identity as a luxe label, under what executives expressed is the belief that Europe is the "center of luxury brands."

Check out some sneak peek photos below from Michael Kors' Spring 2015 collection!

Post by Michael Kors.