Global fashion brand Michael Kors is entering a critical crossroads in 2025 after several years of financial and strategic turbulence. Once considered a leader in the “affordable luxury” space, the brand has seen its revenue drop sharply to $3.02 billion, down from $3.88 billion the year prior, marking a 15.6% decline. This downturn follows Capri Holdings’ failed $8.5 billion merger with Tapestry in late 2024, which forced the company to shift focus back to its struggling core business.
While the broader apparel and accessories sector is showing new momentum, Michael Kors is grappling with slipping relevance, shifting consumer expectations, and lingering concerns about product quality—raising the question of whether the brand can reinvent itself for the future.
Broader Market Shows Signs of Resilience and Growth
In contrast to Michael Kors’s performance, the overall Apparel & Accessories trend has exhibited a “stable” growth status over the past two years, from September 2023 to September 2025. Notably, this market experienced “exploding” growth in both the last month and the last three months leading up to September 2025 based on Particl data.
This suggests that, although the long-term trend has shown a slight downward trajectory, recent consumer activity in the broader sector has been robust, indicating that Michael Kors’s revenue decline may be more brand-specific rather than a reflection of a uniformly stagnant market. The total sales revenue for the wider Apparel & Accessories trend reached over $23 billion from September 2023 to September 2025, highlighting a substantial and active market.
Evolving Consumer Preferences and Strategic Shifts
Customer sentiment for Michael Kors products has been mixed to negative over the past 24 months, with significant dissatisfaction reported on platforms like Sitejabber, often citing poor customer service, difficult returns, and concerns over product quality. Despite these challenges, Michael Kors continues to introduce new product lines seasonally, emphasizing luxury fabrics, embellishments, and versatile hero-pieces in its Spring and Fall Collections. The brand’s strategy includes showcasing items such as shearling coats and sequined evening wear, indicating a push towards relaxed luxury and high-impact event dressing.
The broader luxury fashion sector in 2024-2025 is navigating a landscape of moderate global growth and persistent economic uncertainty. Consumers are increasingly shifting spending from traditional luxury goods to experiences, and there’s a notable rise in the secondhand luxury market, growing at twice the pace of the primary market. Luxury shoppers are also exhibiting greater discernment, prioritizing quality, brand longevity, and ethical values.
Michael Kors’s challenge lies in balancing its “affordable luxury” appeal with these evolving consumer demands for enduring quality and premium experiences, especially as concerns about declining product quality persist among some loyal customers.
Micheal Kor’s Performance, Apparel & Accessories (2023-2024)
- August 2023: Michael Kors’ product assortment continues to be broad, covering handbags, watches, clothing, shoes, and accessories.
- September 2023 – September 2025: The overall Apparel & Accessories market trend is “stable” with recent “exploding” growth in the last one to three months.
- November 2024: The proposed $8.5 billion merger between Capri Holdings and Tapestry collapses due to antitrust concerns.
- Fiscal 2025: Michael Kors’ revenue falls by 15.6%, with global revenue declining to $3.02 billion.
- Spring 2025: Michael Kors increases marketing investments and relaunches signature products to reconnect with core consumers. New Spring collections emphasize sequined eveningwear and relaxed tailoring.
- Fall 2025: Michael Kors introduces new collections highlighting shearling coats and cashmere, emphasizing relaxed luxury and premium materials.
Future Outlook
Looking ahead, Michael Kors faces a pivotal moment that will determine whether it can regain its footing in the competitive luxury landscape. While the broader apparel and accessories market demonstrates resilience with renewed consumer activity, Kors must address brand perception challenges by elevating product quality, strengthening customer service, and sharpening its identity within the “affordable luxury” segment.
