- Michael Kors plans 50 to 75 new stores next year plus more renovations and Jet Set Lounges, as second-quarter revenue fell 8.6% to $663 million.
- The chain has renovated 50 stores, plans 25 more this year and aims for 300, and CEO John Idol says renovated locations are drawing higher traffic and sales.
- Store count fell to 655 from 691 a year earlier, and analyst Neil Saunders says the true test is making more money from more sales, not just fewer.
Michael Kors is betting that better stores can fix a shrinking brand: Capri Holdings plans a store expansion of 50 to 75 new locations next year, CoStar reports.
The push comes as the chain’s second-quarter revenue fell 8.6% to $663 million.
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Renovate, Then Expand
Capri CEO John Idol told analysts that stores that have been redone are selling more, which gives the company confidence to open more. A few new freestanding stores have already opened this year, and he pointed to fiscal 2028 as the growth window.
Michael Kors has finished renovating 50 stores, with 25 more planned this year and a target of 300. Idol described the goal as a warmer, more residential look that frames the luxury product.
Jet Set Lounges
The chain is also adding Jet Set Lounges, in-store cafes meant to keep shoppers around longer. There are seven today, all in flagship locations around the world.
Idol said early results are encouraging, with renovated locations drawing higher traffic and revenue.
Fewer Stores, Fewer Sales
The expansion follows a shrinking fleet. The chain stood at 655 full-price and outlet stores last month, versus 691 twelve months earlier.
The brand is trying to repeat Coach’s playbook: sharper assortments, narrower distribution and less discounting. Looking past fiscal 2027, Idol sees Michael Kors returning to growth and reaching $4 billion of revenue at low-20s operating margins.
The Skeptic’s View
GlobalData’s Neil Saunders wrote that sales are still stubbornly falling. The 8.6% drop accelerates from a 7.1% decline the prior quarter, and revenue is 40.3% below the level of five years ago, when second-quarter sales topped $1 billion.
Saunders said management has bought some breathing room, helped by share buybacks, but the real test is making more money from more sales. Sister brand Jimmy Choo grew 11.5% to $146 million.
Why It Matters
High-end store growth depends on wealthy shoppers, and that spending is wobbling. Citi data in our brief on luxury spending falling 6% showed a third straight monthly drop in September, with Coach owner Tapestry among the most exposed names.
For landlords, a brand opening stores while its sales fall is a mixed signal. It’s still taking space, but on a smaller base.
What’s Next
New leases from a brand like this land in a market with little supply. Bisnow-sourced figures in our report on retail demand and low construction showed a net gain of 127 store openings through Aug. 28, a turnaround from last year’s net closures.
Watch whether renovated stores keep outperforming and whether sales growth, not just margin, follows.
