Kors to Close Stores
Michael Kors Holdings Ltd., the New York–based ready-to-wear and accessories brand founded by designer Michael Kors, announced on May 31 that it would close more than 100 stores.
Also on May 31, the company announced that its total revenue declined 11.2 percent to $1.06 billion in the fourth quarter of its fiscal 2016 year. Comparable sales decreased 13.6 percent. A tough retail environment was blamed for the brand’s problems, said John D. Idol, the company’s chairman and chief executive officer.
“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. Looking ahead, as we expand the fashion innovation in our accessories assortments, right-size our store fleet and elevate our store experience,” he said in a statement.
The store closings are scheduled to take place in the next two years. According to a financial filing, Michael Kors runs 398 shops in the Americas and 429 stores in Europe and Asia. It also runs e-commerce shops. Retail comprised 57.2 percent of the company’s total revenue. Kors also wholesaled its goods through department stores such as Bergdorf Goodman, Saks Fifth Avenue, Neiman Marcus and Holt Renfrew.