How fashion icon Michael Kors turned a small boutique in his mom's basement into a $5.78 billion global fashion company (CPRI)

In the 38 years since he started out as a fashion designer, Kors has designed for multiple brands, he's taken his own company public, and he's even starred as a judge on Bravo's reality series, " Project Runway ."
Kors reached billionaire status in 2014, but most recent estimates put him closer to a net worth of $600 million today.
The Michael Kors Holding Company made headlines in 2018 when it announced the purchase of Versace and changed its name to Capri Holdings . As of September 2019, Capri Holdings had a market cap of $5.78 billion .
From a small boutique in his mother's basement to luxury retail shops around the world, here's how the designer rose to fashion industry stardom and reached billionaire status, and what he's up to now.
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Michael Kors started designing clothes in his childhood and has since turned the passion into a global fashion empire that contributes to his current estimated net worth of $600 million as of 2018.

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Getty Images / Rob Kim

Source: Celebrity Net Worth

In December 2011, Kors took his company public. It traded under the ticker KORS and was valued at $3.5 billion.

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Richard Drew/AP

Source: Business of Fashion , 92Y

This was the biggest ever public offer in fashion. When fashion consultant, Fern Mallis, asked Kors what he thought about the business milestone, he answered, "Keep your eye on the ball, and you do what you do, and you do it well."

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AP Images

Source: 92Y

In 2018, the public Michael Kors Holdings company which owned its namesake brand, Michael Kors ...

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Mike Blake/Reuters

... along with luxury shoe brand Jimmy Choo ...

BusinessInsider USA Images

Spencer Platt/Getty Images

... announced a new acquisition: Versace. With this addition to its portfolio, the company changed its name to Capri Holdings.

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Scott Olson/Staff/Getty Images

Source: Forbes

While Michael Kors is a clothing brand that has been around since 1981, its designer has a story that dates back to 1959.

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Andrew Kelly/Reuters

His story starts in Merrick, Long Island, where he was born Karl Anderson Jr.

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Keith Beaty/Contributor/Getty Images

Source: Telegraph , Michael Kors

In a 1991 interview with People magazine, the designer said he changes his name when his mother married Bill Kors. "My mother said, Youre getting a new last name, so why dont you pick a new first name?"

BusinessInsider USA Images

Mario Ruiz/Contributor/Getty Images

Source: Vogue UK

Kors attended Kennedy High School until 1977 when he started classes at New York Citys Fashion Institute of Technology. After spending nine months at the fashion school, he left to pursue selling his own designs at Manhattan retailer, Lothars.

BusinessInsider USA Images

Dia Dipasupil/Getty Images

Source: Patch , Harper's Bazaar

One day, while Kors was setting up a window display at Lothars on 57th Street, Dawn Mello fashion director at Bergdorf Goodman at the time tapped on the window and asked who designed the clothes. Kors admitted they were his and Mello then helped him develop his first line that would then be sold in Bergdorfs.

BusinessInsider USA Images

Newsday LLC/Contributor/Getty Images

Source: Business of Fashion , Vogue , "Scatter my ashes at Bergdorf Goodman"

In 1981, Kors started his eponymous brand. He showed for the first time on a runway in 1984.

BusinessInsider USA Images

Keith Beaty/Contributor/Getty Images

Source: Harper's Bazaar

Kors described his design aesthetic as a mix between Jackie Kennedy and Elizabeth Taylor saying his mom, Joan, was more like the former, and his grandmother like the latter.

BusinessInsider USA Images

Associated Press and Hulton Archive/Getty Images

Source: 92Y

Kors said that at five years old, he redesigned his mothers wedding dress. According to his brands website, he told her to ditch the bows for her second wedding, and she did. His mother, Joan, told ABC News that when Kors gave design advice, everyone listened.

BusinessInsider USA Images

screenshot via Hulu

Source: Vogue , Michael Kors , ABC News

But it wasnt all praise for the budding designer growing up. He told ABC News he was bullied outside the home and called "every name in the book."

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Charles Sykes/Invision/AP

Source: ABC News

He said it was confusing for him growing up because he was so supported by his family at home, but when he wanted to sketch instead of play sports at school, the other kids ostracized him.

BusinessInsider USA Images

Caitlin Ochs/Reuters

Source: ABC News

Kors told ABC News that he wants to help kids going through similar struggles. He has become involved with the It Gets Better Project and hopes to help even just one young person whos struggling and let them know, "There is a light at the end of the tunnel."

BusinessInsider USA Images

Reuters

Source: It Gets Better Project , ABC News

Even in the face of bullies, Kors was true to himself and opened his first store at the age of 11. The designer told Mallis at 92Y that it was called the Iron Butterfly Boutique and it was in his mothers basement.

BusinessInsider USA Images

Daniel Goodman/Business Insider.com

Source: Racked , Vogue

"I was very crafty," he told Mallis, "so I made fabulous candles, I made whip-stitched leather bags, I made hammered copper bracelets ... I set the whole thing up in the basement of our house in the suburbs, and I invited all the kids from the neighborhood to come over and I sold everything in like a week."

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92nd Street Y/YouTube

Source: 92Y

Kors also talked about having a mustard and chocolate color scheme for his Bar Mitzvah in the 70s. "Every decade has its good points and its bad points ... the good: Halston. The Bad: mustard and chocolate." He went on: "Down to the invitations, the yarmulkes, the matches, the tablecloths, it was a pretty insane moment."

BusinessInsider USA Images

92nd Street Y/YouTube

Source: Racked , 92Y

While the 70s were tough for Kors to think about from an aesthetic standpoint, the 90s were tough for him from a business standpoint.

BusinessInsider USA Images

Richard Drew, File/AP

Source: ABC News , Harper's Bazaar , Business of Fashion

He told ABC News that he had high expectations for the 90s, but a financial crisis hit his business hard and it was struggling. "It was a domino effect," he said. "And then the next thing you knew, it was all about nose rings and ugly. I mean, it was a trifecta of a nightmare for me."

BusinessInsider USA Images

Seth Wenig/AP

Source: ABC News , Harper's Bazaar

In 1993, Korss company filed for bankruptcy protection. An Italian company decided to stop selling Korss lower-priced line, and without that income, there was no other option for the brand, Kors told The New York Times. But rather than give up, he simply reorganized.

BusinessInsider USA Images

Seth Wenig/AP

Source: The New York Times , Business of Fashion

In 1997, Korss company gained an investor: LVMH. With both financial and business support from the luxury group, Michael Kors launched a low-priced line.

BusinessInsider USA Images

Bebeto Matthews/AP

Source: Harper's Bazaar , LVMH

As part of the LVMH family, Kors was tapped in 1997 to design for another group in-brand: Cline. He became increasingly known for his "luxurious sportswear," which he brought with him to the French label.

BusinessInsider USA Images

Stephane Cardinale - Corbis/Contributor/Getty Images

Source: CR Fashion Book

CR Fashion Book pointed out how Korss spring collections at Cline featured lots of beach-inspired looks.

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New York Daily News Archive/Contributor/Getty Images

Source: CR Fashion Book , Racked , 92Y

In 1998, he became Clines creative director and has been credited with totally revamping the brand with his ready-to-wear.

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Swan/Contributor/Getty Images

Source: Harper's Bazaar

In 2003, Sportswear Holdings Ltd. bought a majority stake in Korss company, and he left Cline in 2004 to give his full attention to his namesake brand.

BusinessInsider USA Images

Kathy Willens/AP

Source: Harper's Bazaar , CR Fashion Book

That year, MICHAEL Michael Kors launched which ran counter to the price point of his first label and actually continued to sell during the recession.

BusinessInsider USA Images

Ron Galella, Ltd./Contributor/Getty Images

Source: Harper's Bazaar

He also started selling accessories and perfume in 2004.

BusinessInsider USA Images

Eduardo Parra/Getty

Source: Harper's Bazaar

Also in 2004, Kors made a name for himself in TV when he joined the panel of judges on reality show, "Project Runway."

BusinessInsider USA Images

Donald Traill/Invision/AP

Source: Harper's Bazaar

While he was working on the show, Kors got married. In 2011 the designer married Lance LePere in Southampton, Long Island. The two shared a low-key, double wedding with two of their friends.

BusinessInsider USA Images

Demis Maryannakis/STAR MAX/AP

Source: 92Y

Kors told Mallis he was married barefoot in a black T-shirt and white shorts. He said that he and LePere got married on the beach, "jumped in a Jeep, drove to East Hampton, ate pizza at Sams, and went to go see The Help."

BusinessInsider USA Images

Andy Kropa/Invision/AP

Source: 92Y

Kors was married the same year his company went public. He continued to work as a judge on "Project Runway" until 2012.

BusinessInsider USA Images

Jason DeCrow/AP

Source: Harper's Bazaar

In 2014, Kors reached billionaire status due to the success of his public company.

BusinessInsider USA Images

Kathy Willens/AP

Source: Forbes

In 2015, the company was on the rise, generating a reported $4.5 billion in net sales.

BusinessInsider USA Images

Patrick McMullan/Contributor/Getty Images

Source: Business of Fashion

Just two years later, in 2017, Michael Kors Holdings announced they would be closing 125 stores. Sales and stock prices were nosediving but it wasnt an issue unique to Michael Kors, it was happening to more than two-dozen brick-and-mortar retailers across the US.

BusinessInsider USA Images

AP Photo/John Minchillo

Source: CBS News

But in 2018, the company decided to phase out the major discounts that became synonymous with its name. Business Insider reported that heavy sales were tarnishing the reputation of certain once-luxury brands like Michael Kors and made them less desirable.

BusinessInsider USA Images

Larry Busacca/Getty Images

Source: Business Insider

With the $2 billion acquisition of Versace, Capri Holdings is trying to increase its revenue and its reputation as a big player in the luxury fashion space.

BusinessInsider USA Images

Carlo Allegri/Reuters

Source: Business Insider

Today, Michael Kors the man is worth an estimated $600 million.

BusinessInsider USA Images

Andrew Kelly/Reuters

Source: Celebrity Net Worth

In 2018, he showed off his West Village, Manhattan, apartment during a tour led by Architectural Digest.

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

He and LePere spend their fortune on art, like this sculpture they bought at a flea market in France ...

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

... and the many photographs they have hanging on their walls. Kors said he has collected photography for more than thirty years.

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

His collection even includes a signed photo of Elizabeth Taylor.

BusinessInsider USA Images

Architectural Digest/Youtube

Source: Architectural Digest

The apartment features a sleek, modern kitchen, but Kors says neither he nor LePere cooks. He jokes, "Whats my favorite thing to make for dinner? Its reservations."

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

In keeping with his famously classic and chic design aesthetic, Kors says he loves having black bowls in his kitchen to fill with brightly colored things like lemons.

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

The designer has an affinity for black clothing ...

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

... and hes often caught wearing aviator sunglasses. He showed Architectural Digest his drawers and drawers of sunglasses, which he said most people tell him all look the same. "I know the difference," he said. "It makes me happy."

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

The apartment features the ultimate New York City luxury element: outdoor space. Kors says hes got a green thumb but admits he has a lot of help when it comes to his garden.

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

Kors keeps his roots close to him in subtle ways. He has a painting hanging in his dining room that nods to his professional growth "Its a 1981," he said, "the year I started my business."

BusinessInsider USA Images

Architectural Digest/YouTube

Source: Architectural Digest

Since those early days in the 80s, Kors has been building up friendships with some of the industrys most iconic leaders. And even though its now decades later, hes got a level-headed mindset when it comes to his industry: Fashion is "the right thing at the right time," he told Vogue.

BusinessInsider USA Images

George De Sota/Staff/Getty Images

Source: Harper's Bazaar , Vogue

How fashion icon Michael Kors turned a small boutique in his mom's basement into a $5.78 billion global fashion company (CPRI)

Michael Kors started designing clothes in his childhood and has since turned the passion into a global fashion empire that contributes to his current estimated net worth of $600 million as of 2018.

In December 2011, Kors took his company public. It traded under the ticker KORS and was valued at $3.5 billion.

This was the biggest ever public offer in fashion. When fashion consultant, Fern Mallis, asked Kors what he thought about the business milestone, he answered, "Keep your eye on the ball, and you do what you do, and you do it well."

In 2018, the public Michael Kors Holdings company which owned its namesake brand, Michael Kors ...

... along with luxury shoe brand Jimmy Choo ...

... announced a new acquisition: Versace. With this addition to its portfolio, the company changed its name to Capri Holdings.

While Michael Kors is a clothing brand that has been around since 1981, its designer has a story that dates back to 1959.

His story starts in Merrick, Long Island, where he was born Karl Anderson Jr.

In a 1991 interview with People magazine, the designer said he changes his name when his mother married Bill Kors. "My mother said, Youre getting a new last name, so why dont you pick a new first name?"

Kors attended Kennedy High School until 1977 when he started classes at New York Citys Fashion Institute of Technology. After spending nine months at the fashion school, he left to pursue selling his own designs at Manhattan retailer, Lothars.

In 1981, Kors started his eponymous brand. He showed for the first time on a runway in 1984.

Kors described his design aesthetic as a mix between Jackie Kennedy and Elizabeth Taylor saying his mom, Joan, was more like the former, and his grandmother like the latter.

Kors said that at five years old, he redesigned his mothers wedding dress. According to his brands website, he told her to ditch the bows for her second wedding, and she did. His mother, Joan, told ABC News that when Kors gave design advice, everyone listened.

But it wasnt all praise for the budding designer growing up. He told ABC News he was bullied outside the home and called "every name in the book."

He said it was confusing for him growing up because he was so supported by his family at home, but when he wanted to sketch instead of play sports at school, the other kids ostracized him.

Kors told ABC News that he wants to help kids going through similar struggles. He has become involved with the It Gets Better Project and hopes to help even just one young person whos struggling and let them know, "There is a light at the end of the tunnel."

Even in the face of bullies, Kors was true to himself and opened his first store at the age of 11. The designer told Mallis at 92Y that it was called the Iron Butterfly Boutique and it was in his mothers basement.

While the 70s were tough for Kors to think about from an aesthetic standpoint, the 90s were tough for him from a business standpoint.

He told ABC News that he had high expectations for the 90s, but a financial crisis hit his business hard and it was struggling. "It was a domino effect," he said. "And then the next thing you knew, it was all about nose rings and ugly. I mean, it was a trifecta of a nightmare for me."

In 1993, Korss company filed for bankruptcy protection. An Italian company decided to stop selling Korss lower-priced line, and without that income, there was no other option for the brand, Kors told The New York Times. But rather than give up, he simply reorganized.

In 1997, Korss company gained an investor: LVMH. With both financial and business support from the luxury group, Michael Kors launched a low-priced line.

As part of the LVMH family, Kors was tapped in 1997 to design for another group in-brand: Cline. He became increasingly known for his "luxurious sportswear," which he brought with him to the French label.

CR Fashion Book pointed out how Korss spring collections at Cline featured lots of beach-inspired looks.

In 1998, he became Clines creative director and has been credited with totally revamping the brand with his ready-to-wear.

In 2003, Sportswear Holdings Ltd. bought a majority stake in Korss company, and he left Cline in 2004 to give his full attention to his namesake brand.

That year, MICHAEL Michael Kors launched which ran counter to the price point of his first label and actually continued to sell during the recession.

He also started selling accessories and perfume in 2004.

Also in 2004, Kors made a name for himself in TV when he joined the panel of judges on reality show, "Project Runway."

While he was working on the show, Kors got married. In 2011 the designer married Lance LePere in Southampton, Long Island. The two shared a low-key, double wedding with two of their friends.

Kors told Mallis he was married barefoot in a black T-shirt and white shorts. He said that he and LePere got married on the beach, "jumped in a Jeep, drove to East Hampton, ate pizza at Sams, and went to go see The Help."

Kors was married the same year his company went public. He continued to work as a judge on "Project Runway" until 2012.

In 2014, Kors reached billionaire status due to the success of his public company.

In 2015, the company was on the rise, generating a reported $4.5 billion in net sales.

Just two years later, in 2017, Michael Kors Holdings announced they would be closing 125 stores. Sales and stock prices were nosediving but it wasnt an issue unique to Michael Kors, it was happening to more than two-dozen brick-and-mortar retailers across the US.

But in 2018, the company decided to phase out the major discounts that became synonymous with its name. Business Insider reported that heavy sales were tarnishing the reputation of certain once-luxury brands like Michael Kors and made them less desirable.

With the $2 billion acquisition of Versace, Capri Holdings is trying to increase its revenue and its reputation as a big player in the luxury fashion space.

Today, Michael Kors the man is worth an estimated $600 million.

In 2018, he showed off his West Village, Manhattan, apartment during a tour led by Architectural Digest.

He and LePere spend their fortune on art, like this sculpture they bought at a flea market in France ...

... and the many photographs they have hanging on their walls. Kors said he has collected photography for more than thirty years.

His collection even includes a signed photo of Elizabeth Taylor.

The apartment features a sleek, modern kitchen, but Kors says neither he nor LePere cooks. He jokes, "Whats my favorite thing to make for dinner? Its reservations."

In keeping with his famously classic and chic design aesthetic, Kors says he loves having black bowls in his kitchen to fill with brightly colored things like lemons.

The designer has an affinity for black clothing ...

... and hes often caught wearing aviator sunglasses. He showed Architectural Digest his drawers and drawers of sunglasses, which he said most people tell him all look the same. "I know the difference," he said. "It makes me happy."

The apartment features the ultimate New York City luxury element: outdoor space. Kors says hes got a green thumb but admits he has a lot of help when it comes to his garden.

Kors keeps his roots close to him in subtle ways. He has a painting hanging in his dining room that nods to his professional growth "Its a 1981," he said, "the year I started my business."

Since those early days in the 80s, Kors has been building up friendships with some of the industrys most iconic leaders. And even though its now decades later, hes got a level-headed mindset when it comes to his industry: Fashion is "the right thing at the right time," he told Vogue.

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