Customer Behavior & Attitudes Toward

The public is susceptible to the strong image and the goodwill associatedwith Michael Kors as judge from Project Runway and for being the face of“Watch Hunger Stop” program, a mission to help alleviate world hunger.Being the Chief Creative Officer he has provided design and executiveleadership to the company since its inception and he is closely identified with the brand that bears his name.  This closeness and involvement with the brand translate into great products that the customer is willing to purchase at a great value time after time.

With the launch of the  MICHAEL Michael Kors collection, brand awareness within the United States has grown exponentially, increasing from 11% in 2004 to 71% in 2011. Also, sales of accessories have grown at an approximately 57.6% CAGR over the last three years, outperforming industry growth. Net sales of accessories and related merchandise (including handbags, small leather goods, footwear, watches, jewelry, eyewear and fragrance) in the retail and wholesale segments accounted for approximately 62.3% of our total revenue in Fiscal 2011.

As a result of increased brand awareness Michael Kors  anticipates that sales of accessories and related merchandise will continue to grow and will become an increasingly important driver of global comparable store sales growth.