Michael Kors to cut prices as sales suffer huge hit amid cost-of-living crisis

The UK subsidiary of the esteemed fashion label Michael Kors has disclosed its intentions to reduce prices following a considerable decline in sales.

During the year ending 30 March, 2025, the division's revenue plummeted by 20 percent. This drop occurred amidst widespread store closures and as a consequence of the cost-of-living crisis, as reported by City AM.

Michael Kors notably shuttered outlets in Newcastle, Milton Keynes, and Manchester, along with a concession in Harvey Nichols, London.

Furthermore, the company announced an expected reduction in prices "in the foreseeable future" aiming to align more appropriately with consumer demands and to strategically address competition in the market.

This information was incorporated into the financial accounts of Michael Kors for the fiscal year up to 30 March, 2024, which were submitted belatedly to Companies House.

According to the recently filed accounts, the company saw a decrease in turnover from £77.1 million to £70.8 million over one year. However, its pre-tax profit surged from £40.4 million to £66.1 million within the same timeframe.

In reference to that fiscal year, the company observed: "The overall result of the period reflects sustainability of the global 'Michael Kors' brand, where despite the level of competition and the current challenges in the economic environment affecting the UK retail sector, Michael Kors continues to be a profitable business."

Michael Kors is part of Capri Holdings which also encompasses luxury brands Versace and Jimmy Choo.

In August 2023, the conglomerate was snapped up by Tapestry, the American fashion powerhouse behind high-end brands such as Coach and Kate Spade, in a deal worth $8.5bn (£6.6bn).

Fast forward to December 2024, Versace's UK division reported a year-on-year turnover of £19.1m for the 12 months ending 31 March 2024, marking a decrease from the previous £23.8m.

Simultaneously, its pre-tax profit also took a hit, dwindling from £314,862 to a mere £112,895.