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Michael Kors sales are suffering, but the brand won't be rolling out holiday promotions to compensate for losses. According to Businessweek, the brand is willing to take a hit on its sales growth in order to keep its luxury status. "When you don't take a promotional posture, obviously some of the business goes in different directions," company CEO John Idol explained during an earnings call. "We think that's the right thing for us to do as a luxury brand."
He then listed off the brand's competition (in his eyes) including Louis Vuitton, Prada, and Gucci. But, as Businessweek reporter Kyle Stock pointed out, Michael Kors has built its business on a blend of luxury and "near-luxury" items; basically, keeping up the appearances of a luxury name while selling product at a more affordable price point to reach more consumers. They may be willing to lose that customer by not offering sales at all over the holidays in order to keep the luxury image strong.
· Why Michael Kors Can't Afford to Cut Prices [Bloomberg Businessweek]
· How Your Favorite Stores Get Their CEOs [Racked]
· Michael Kors Ads Showcase 'Fashion's Cruelest Means Of Trickery' [Racked]