Michael Kors CEO Admits Brand Needs Help as Tapestry Acquisition Faces Scrutiny

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Michael Kors,Tapestry,Acquisition

During a hearing examining Tapestry's proposed acquisition of Capri Holdings, Michael Kors CEO Cedric Wilmotte revealed that the brand's turnaround efforts have fallen short. He testified that major parts of their reinvention plan are on hold and that Tapestry is better equipped to complete the job. Wilmotte also expressed concerns about the brand's performance in private emails, citing discounting strategies and intense competition.

, a hearing over whether the mega deal will be allowed to go through at all highlighted just how much work there is to do., called Michael Kors’ chief executive officer Cedric Wilmotte to the stand on Thursday and his testimony ultimately elicited an unusually raw take on the brand.

Michael Kors strategy documents shown in court showed that the brand had both a low exclusivity factor and low prices, territory that also included the likes of Tommy Hilfiger, Kate Spade, DKNY and others. That meant closing some Michael Kors stores and pulling out of some Macy’s doors while expanding with Nordstrom.

The going has been slow and Michael Kors’ revenues last fiscal year fell 9.2 percent to $3.5 billion from $3.9 billion.

 

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