Michael Kors has become this year’s comeback kid. The brand recently announced better-than-expected Q2 earnings, and L2’s Digital IQ Index: Fashion ranks Michael Kors as a Genius brand for the first time since 2013, citing marked improvements in the digital marketing arena.
A key component behind Michael Kors’ rise is its mastery of the unbranded search market. The brand appears on the first page of search results for 65% of handbag search terms and 19% of all category keywords. This strategy sets Michael Kors apart from the majority of luxury brands, which invest primarily on branded search terms. As a result, they are typically relegated to near-invisibility on category search terms, which are dominated by retailers.
These digital improvements come on the heels of a turnaround strategy at Michael Kors. As indicated by its upbeat earnings report, the brand has seen success with new initiatives ranging from an expanded SKU offering to a reduced brick-and-mortar footprint. Michael Kors also recently closed its acquisition of Jimmy Choo, which is expected to be a key future growth channel.
Jimmy Choo places 11th in L2’s ranking, a jump from last year’s 18th spot, and the power couple ranks higher than any other enterprise with an average Digital IQ of 132. Michael Kors CEO John Idol intends to make Jimmy Choo a $1 billion brand, and enhancing its digital prowess is a clear step towards achieving that goal.