Michael Kors is making it work: Profit at the newly public luxury retailer more than tripled in the fourth quarter.
The American fashion designer puts out extravagant $2,295 python satchels (other bags come in ostrich and crocodile) and $1,295 calf-hair cowboy boots but also creates more affordable $59 thong sandals as well as stylish iPhone carriers and MacBook sleeves.
The high-low strategy seems to be working. Michael Kors Holdings, which had its initial public offering last year, netted $43.6 million in net income, or 22 cents a share in its fiscal fourth quarter. During the same period last year, Kors made $13.6 million in profit, or 10 cents a share.
Kors, made especially popular by his stint as a judge on the reality show "Project Runway," is beloved by celebrities including Jennifer Lopez and Michelle Obama. There are 301 Michael Kors stores worldwide, including boutiques in Beverly Hills, New York, Palm Beach and elsewhere.