Michael Kors Stock Up 11% This Year, Despite Founder & CEO Selling Large Stakes

Michael Kors' stock has risen this year, but key stakeholders have sold large stakes. Strong sales growth contrasts with a high valuation, leaving investors cautious.

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2025 October 2 . 8:58 PM

1 min read

This image is clicked in a room, where it looks like Store. There are so many bottles in this image... — This image is clicked in a room, where it looks like Store. There are so many bottles in this image and cans. There is a Banner in the middle which is indicating Supra brand. Bottom right corner there is a logo LM.

Michael Kors Stock Up 11% This Year, Despite Founder & CEO Selling Large Stakes

Michael Kors, the luxury fashion brand, has seen mixed fortunes in recent times. While its stock has risen by 11% this year, it remains 12% below its 2013 peak. Meanwhile, the company's founder and CEO have both sold significant stakes in the company recently.

Last quarter, Michael Kors reported impressive growth, with comparable sales up 41% and revenue surging by 70%. Despite this, the company's stock is trading at a high multiple of earnings, at 32 times compared to the industry average of 23. This could indicate investor caution about the company's future prospects.

The company's founder, Michael Kors, has reduced his holding to just 2.4% of the company. In February, he sold $185 million worth of michaels' stock. Similarly, CEO John Idol sold 2 million shares around the same time. The reasons behind these sales remain unclear, as searches did not yield information about recent large stake sales by individuals.

Michael Kors is expanding into the Asian market, with plans to enter China in the near future. Despite recent stock fluctuations and significant sales by key stakeholders, the company continues to report strong sales growth. However, its high valuation may reflect investor concerns about its future performance on the stock market.