Michael Kors is finding an audience on TikTok Shop among consumers who, according to Capri Holdings chairman and CEO John Idol, barely knew the brand existed.
The brand launched its Shop during its fiscal second quarter, and business through the channel is running at almost four times initial expectations, Idol said on Capri’s October 30 earnings call. The early performance comes as Michael Kors cuts promotions and seeks younger shoppers to support a sales recovery.
“At Michael Kors, in particular, the Gen Z consumers, they almost didn’t know who we were,” Idol said. “We need to educate them more.” That admission puts the brand’s investment in social commerce in context; ultimately, the brand is using TikTok to introduce its products and positioning to younger consumers, with a direct path to purchase.
The launch gives Michael Kors another sales channel heading into Black Friday on November 27. TikTok Shop lets shoppers move from creator videos and livestreams to checkout within the app, giving brands a chance to convert product recommendations into purchases during the holiday shopping period.
The brand joins established companies including Victoria’s Secret, which also launched on TikTok Shop this year, according to the platform. And its early results arrive ahead of TikTok Shop’s November 11–30 Black Friday and Cyber Monday campaign. TikTok reported more than $500 million in sales during last year’s four-day holiday weekend, with sellers hosting livestreams reporting 84% year-over-year sales growth.
For Michael Kors, the timing also tests its efforts to sell more products at full price. The brand reduced promotional days by approximately 50% and had roughly 40% less markdown inventory available during the quarter. Management said those decisions weighed on revenue but supported higher average selling prices and gross margins.
“We’ve made a decision. We’re sticking to it, and we’re really seeing the results of that,” Idol said of the pullback in markdown inventory.
Capri did not disclose how TikTok Shop pricing, vouchers or promotional activity compare with Michael Kors’ other channels. Those details could help establish whether the platform is supporting the company’s full-price strategy alongside customer acquisition.
Separately, Idol pointed to growing influencer interest in the $359.50 Hamilton Soft handbag, which he said had quickly become one of the brand’s bestselling styles. The company is chasing inventory after demand exceeded expectations.
“The influencer community is driving a lot of this interest,” he said. “They’re just organically talking about this product.” Idol said the brand had not seen comparable sell-throughs on products such as the Hamilton Soft in five or six years.
Michael Kors’ global customer database grew 8% year over year during the quarter. Idol said the younger consumers engaging with both Michael Kors and sister brand Jimmy Choo included millennials and Gen Z. Capri did not disclose how many database additions became paying customers.
The early signs of engagement have yet to translate into overall growth at Michael Kors. Quarterly revenue declined 8.6% to $663 million, with inventory delays and reduced promotional activity weighing on performance. Results also benefited from approximately $15 million in wholesale shipments arriving earlier than expected.
Management expects Michael Kors’ revenue to return to growth in its fiscal fourth quarter. For the holiday season, the company is increasing marketing investment and bringing in new products, while supplementing freight with air shipments to address inventory constraints.
“We’re moving as fast as we possibly can,” Idol said of replenishing in-demand products, warning that some could be out of stock during the holiday season.
