Consumers Lose Interest In Holdings Ltd

After setting bad records for consecutive quarters, a research report on Tuesday said that, Michael Kors Holdings Ltd. Is being abandoned by American department store retailers because consumers brand Lost interest, department stores began to reduce the sale 。

According to the report, the bank interviewed Nordstrom Inc., an American high-end department store retailer Among 112 handbags department managers in Nordstrom America and Canada, 54 said they would stop selling Michael Michael Kors under the group in May Another 5 brand handbags said they would stop selling in the next few weeks. And those who continue to sell Michael Kors product Nordstrom Inc Nordstrom said that it would only sell products that Macy's Inc. Macy's Department Store did not have and were best sellers of the brand.

In addition, many Nordstrom Inc. Nordstrom stores began to return their products to suppliers, or take their products to Nordstrom Rack, a discount department store under the Group Store sales. The expensive Michael Kors brand is currently on sale at a discount of 60% in several stores, while one fifth of the stores said they would not sell the brand again.

Wedbush Inc. pointed out in the report that due to Michael Kors Gradually losing its appeal in the North American market, more department store retailers will stop selling the brand this year, including Macy's Inc., the largest chain department store group in the United States that sells Michael Kors at discount all year round Macy's.

Lupine Skelly, an analyst at Wedbush Inc., also quoted news that, Michael Kors It is one of the brands with the highest return rate. Because the workmanship is very poor, the source was not surprised that the department store stopped selling Michael Kors. The report also states that, Nordstrom Inc. The price war between Nordstrom and Macy's Inc. Macy's Department Store, as well as the non difference between Michael Kors retail channel and wholesale channel, has made Nordstrom Inc In the end, half of Nordstrom's stores decided to abandon Michael Kors.

For some Nordstrom Inc. Nordstrom stores that stopped selling Michael Kors, naturally more Michael Kors were selected Coach Coach brand, Kate Spade brand, or directly reduce the handbag department.

Wedbush Inc. reported that the brand value of Michael Kors Holdings Ltd. continued to weaken, leaving Nordstrom Inc Nordstrom is difficult to maintain a strong brand image after graduation, so the company's stock is rated as negative "neutral" with a target price of $52.

Michael Kors Holdings Ltd., who will release the fourth quarter and full year financial reports this Wednesday, refused to respond to the report of Wedbush Inc.

　　Michael Kors Holdings The loss of attractiveness of Ltd. in the North American market has long been reflected in its financial statements. According to the data of www.vogue. cn, since the fourth quarter of fiscal year 2015 on March 28, 2015, the same store sales of the group in North America have declined for three consecutive quarters. In the third quarter of fiscal 2016, the company claimed that the same store sales in North America rebounded, but did not disclose specific data. However, at the beginning of May, the financial reporting season of American department stores, Michael Nordstrom Inc. Nordstrom and Macy's Inc., Kors Holdings Ltd.'s major North American wholesale customers Macy's has released weak quarterly reports. It is expected that Michael Kors Holdings Ltd. will continue to retreat in the North American market in the fourth quarter.

In addition to Wedbush Inc., Wells Fargo also released a report in the middle of the month that, Michael Kors Holdings Ltd. Many of its wholesale customers are marginalizing the company. Compared with competitors, Michael Kors Holdings Ltd. 50% of the revenue comes from the wholesale business, so it is abandoned by the department store channel, which is more fatal for Michael Kors Holdings Ltd. Wells Fargo The target price of Michael Kors Holdings Ltd. given by Wells Fargo Bank is only $42 - $44.

　　Michael Kors Holdings Ltd. The stock closed at $41.79 on Friday, down 0.07%, only 40% of its peak. With the weakness of the US retail market, the stock has plummeted 20% in the past month, and its short position jumped to 13.27% as of Friday.