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locations this quarter. The company's digital North American platform delivered double-digit comparable sales growth while the recently launched Chinese and European digital flagships "exceeded expectations." In addition to this, the company is beginning to offer more customized products on its North American website. With the new Custom Kors option, customers can order free monogramming for their handbags or customize it with other select design options. While fashion watch sales did continue to decline, this was partially offset by the incredible success of its new ACCESS line of wearable technology. During the holiday shopping season, the new ACCESS watches routinely sold out in stores without ever being placed on sale. While Idol declined to comment whether wearable technology would ever

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surpass traditional watches, he did state, "We're at the very beginning of something that could become sizable." Much more remarkable, however, were his comments that he believes the company could eventually become "the second-largest wearable watch business in the world." Finding value on the clearance rack Unfortunately for Michael Kors investors, there doesn't seem to be any relief coming in the next few quarters. The entire retail sector is struggling and Michael Kors does not seem to be immune. Furthermore, if less merchandise is going to be sold through department stores, net sales could easily continue to meander downward. In other words, Kors is a flawed retailer with real problems and to pretend otherwise would be foolish.

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