Michael Kors to shutter more than 100 stores
(bargainmoose/Flickr)
(FoxNews.com) - Luxury retailer Michael Kors said Wednesday it added more than 100 stores to the chopping block after closing out a “challenging” year in an overall difficult retail environment.
The company reported a more than 14% decline in same-store sales – a key measure of success for retailers – alongside an 11.2% drop in revenue to $1.06 billion in the first three months of the year. That compared to $1.20 billion in the year prior and $1.05 billion Wall Street expectations.
In an effort to right the ship, the company announced plans to shutter between 100 and 125 full-price stores in the next two years. Costs between $100 million and $125 million are expected to be associated with the closures, while Michael Kors anticipates ongoing annual cost savings of $60 million as a result.
“We acknowledge that we need to take further steps to elevate the level of fashion innovation in our accessories assortments and enhance our store experience in order to deepen consumer desire and demand for our products,” the company’s chairman and CEO, John Idol, said in a statement.
“We acknowledge that we need to take further steps to elevate the level of fashion innovation in our accessories assortments and enhance our store experience in order to deepen consumer desire and demand for our products,” the company’s chairman and CEO, John Idol, said in a statement.
Read the full story on FoxNews.com.