How Michael Kors Went From Design School Dropout To Billionaire Fashion Tycoon
Kors was born on Long Island and started designing at age 19, as a student at the Fashion Institute of Technology.
He dropped out of school and launched his first womenswear collection at 1981. It debuted in high-end department stores like Bergdorf Goodman and Saks.
Kors developed a celebrity fan base early on--Barbara Walters, Demi Moore and Julia Roberts wore his designs. But he was forced to file for bankruptcy in 1993 after his Italian backers went bust.
Sources: The Observer, People
Kors bounced back, launching a lower-priced line and signing on as fashion director for French fashion house Céline.
Kors' exclusive, high-priced line and lower-priced, sportier lines both sold well at department stores through the 1990s.
Kors pursued a strategy of selling at department stores until 2003, when Sportswear Holdings Ltd. spent $100 million on an 85% stake in the company, buying out shares held by LVMH and other investors.
Source: Vogue
The new stakeholders instigated some bold moves. In 2004 Kors launched another line at a lower price point (dresses were $99 to $300), which did well when the recession hit.
Source: Fortune
Kors also expanded into higher-margin accessories like perfume and handbags. And in 2006 the company made an aggressive push to open its own 'lifestyle' retail stores.
Source: Fortune
In a 20/20 interview, Kors said the key to his success was expanding his line to appeal to women at every size and every price point.
Today, Michael Kors has 533 stores worldwide. The company, now based in Hong Kong, reported net income of $398 million on revenue of $2.2 billion in fiscal 2013.
Source: Reuters
In fiscal 2011, the company's total revenue was $803 million. Now, the company is expecting to bring in that much revenue just in the fourth quarter of fiscal 2014.
But Kors has not only grown geographically and financially. He became a household name in 2004 as a sassy judge on Bravo's hit series 'Project Runway.'
He has also dressed the top of the A-list: Michelle Obama has been photographed wearing dozens of Michael Kors dresses and she even wore one in her first official portrait.
Source: Biography
And in 2010, at age 50, he became the youngest person ever to receive a lifetime achievement award from the Council of Fashion Designers of America.
The company has since made Michael Kors a very rich man. He has collected more than $700 million selling stock since its 2011 initial public offering.
Kors now owns about 2% of the luxury goods company, which is valued at about $390 million.
Thanks to Tuesday's 18% surge in the company's share price, Kors is now a billionaire.
Now meet one of fashion's rising stars
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