Indeed, wholesale revenues did underperform those from Kors' retail and licensing businesses, ticking just 0.3 percent higher during the quarter. As such, CEO John Idol reiterated the brand's plan to pull back on the number of products it stocks at North American department stores, as a means of insulating the risk of markdowns. That, in turn, should preserve the brand's integrity as a luxury label, Idol said.
In a note to investors, Stifel Nicolaus analyst David Schick said Kors' deceleration in inventory build "may be the most important part" of its statement.
On a conference call Tuesday morning, Idol said he hoped that the brand's latest results prove to the "naysayers" that the brand is still growing. He pointed to international expansion and a burgeoning men's business — which he said could eventually increase from 11 to 500 stores — as two levers for growth.
He also said there's opportunity to introduce more handbags at higher prices, saying consumers have shown they're willing to spend more money for unique merchandise.