Michael Kors has joined TikTok Shop after Capri Holdings chief executive John Idol acknowledged that Michael Kors had struggled to establish awareness among Gen Z consumers, saying some younger shoppers almost did not know the brand. Speaking during the company's earnings call on 30 October, Idol said the label needed to improve awareness among younger shoppers, adding: 'At Michael Kors, in particular, the Gen Z consumers, they almost didn't know who we were. We need to educate them more.'
The brand's early performance on the social commerce platform has exceeded expectations, with sales reportedly reaching almost four times the level initially anticipated. The launch forms part of Michael Kors' efforts to expand its digital presence and attract younger consumers through social media.
Michael Kors Reports Strong TikTok Shop Sales
Michael Kors launched its TikTok Shop during Capri Holdings' second fiscal quarter, allowing customers to browse and purchase products directly through the social media platform. TikTok Shop allows users to discover products through short-form videos, creator recommendations and livestreams before completing purchases within the app.
According to John Idol, sales through the platform have reached almost four times the level the company initially expected. The launch gives Michael Kors another sales channel as it seeks to reach younger consumers and increase brand awareness through social media. The move also forms part of the wider shift towards social commerce, with fashion retailers using digital platforms to connect product discovery with online purchases.
CEO Highlights Gen Z Brand Awareness
John Idol said Michael Kors needs to increase brand awareness among younger consumers, particularly those who are less familiar with the label. He said the company is working to introduce its products and brand identity to new audiences through digital platforms and social media.
Idol also noted that younger customers were engaging with Capri Holdings' brands, including Michael Kors and Jimmy Choo. However, he said the audience included both Gen Z consumers and millennials.
The company is also focusing on its social media presence and partnerships with influencers and content creators to promote its brands and products. TikTok Shop forms part of this strategy, allowing Michael Kors to showcase its collections through videos and livestreams while enabling customers to purchase products directly through the platform.
Michael Kors Revenue Falls 8.6 Per Cent
Michael Kors reported revenue of $663 million (£505 million) for its latest quarter, an 8.6 per cent decline from the same period a year earlier. The results come as parent company Capri Holdings works to improve the fashion brand's financial performance and strengthen its market position.
Capri Holdings has adjusted its promotional strategy, reducing markdown activity to support average selling prices and gross margins. Despite the lower revenue, the company expects Michael Kors sales to return to growth in its fiscal fourth quarter. Its recovery strategy includes refreshing product collections, increasing marketing activity and improving customer engagement as it seeks to attract new shoppers and strengthen demand for the brand.
Capri Holdings also attributed some of the pressure on Michael Kors' quarterly performance to inventory delays, which affected product availability and approximately $50 million (£37.1 million) in revenue. The company said sales trends improved as autumn collections arrived later in the quarter, and new product launches received a positive response from customers.
