Michael Kors to Open Flagship Store in Japan’s Ginza
Company will present quarterly results on February 5.
Michael Kors announced last week that it will open its largest Japanese flagship store this fall, on Chuo Street in Tokyos renowned Ginza district. The store will be the first in the world to carry every category offered by the global luxury lifestyle brand.
«This is a very exciting opening», says Michael Kors. «Ginza is one of the worlds great shopping neighborhoods, in one of the greatest fashion cities, so its both exciting and appropriate that were debuting this very special store in Tokyo. I look forward to welcoming our customers to the new store, and sharing with them the mix of sophistication, glamour and ease that defines everything we design», he added.
The store, which measures approximately 7,800 square feet, will reflect the new design concept unveiled last year at the JingAn Kerry Centre in Shanghai, including a shimmering exterior facade inspired by Michael Kors signature use of metallics and texture. The facade, designed by Michael Kors in-house design team, consists of luminous screens made of unique, light-reflective facets set within a grid of internally lit recesses. The effect is elegant and kinetic, evoking the light-catching allure of a sequined gown. A large-scale video screen covers the balance of the second- and third-story facade, while the ground floor features large storefront windows framed in Bianco Dolomiti marble.
The interior of the store will reflect the signature jet set glamour of the Michael Kors brand, with polished stainless steel fixtures, white marble flooring, Macassar wood and zebra-skin accents used to create a luxurious and inviting atmosphere. Womens ready-to-wear will occupy the upper floor, housed in a sophisticated, exclusive environment designed to complement both the Michael Kors Collection and MICHAEL Michael Kors labels. Here shoppers can browse, try on clothes and consult with the stores personal stylists in an ambience of calm and complete indulgence. This floor will also showcase a grand shoe salon.
On the ground floor, handbags from Michael Kors Collection and MICHAEL Michael Kors will be showcased in a variety of dramatic displays, along with curated presentations of accessories, watches, jewelry and eyewear. The lower level will be dedicated to menswear and mens accessories, making the Ginza flagship the first freestanding Michael Kors store in Japan to offer menswear.
«Japan is a key market for our continued development in Asia», says John Idol, Chairman and CEO of Michael Kors. The importance of Tokyo to luxury and fashion retailing makes this the right place and time to open our first store showcasing every facet of the Michael Kors brand. We look forward to offering the full breadth of our product assortment, presented with our signature glamour, chic and superlative service, to our Japanese customers and tourists traveling to Tokyo.
Michael Kors’ stock losses in recent months have been tied to the fear of increased discounting with handbags and other popular items. If accurate, margins could come under pressure. However, Oliver Chen of Cowen recently released his National Handbag Survey, and in his note, had nothing but positives to say. First, investors should keep in mind that Chen’s analysis and channel checks are historically very accurate. He not only predicted strong and growing demand for Michael Kors in years past, but also the demise of Coach in North America. Last week Chen’s survey suggested that Kors handbags saw 30% growth from October through December, with 72% of the respondents saying that sales increased versus last year.
Analysts Bloomberg consensus expect Michael Kors to grow revenue by 28% in the quarter. If Chen’s estimates are accurate, it would set Michael Kors up for a meaningful earnings beat in early February. The reason is because 25% of Michael Kors’ revenue now comes from international markets, Europe and Japan, both of which saw sales increase more than 100% during the company’s last quarter on a year-over-year basis. Thus, if sales can grow 30% in North America and double in international markets, KORS would be well positioned for big stock gains.
Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready-to-wear. His namesake company, established in 1981, currently produces a range of products through his Michael Kors and MICHAEL Michael Kors labels, including accessories, footwear, watches, jewelry, mens and womens ready-to-wear, and a full line of fragrance products.