Michael Kors to Shutter 100–125 of Its Stores

The Michael Kors brand—which was once a pioneering bridge concept, but more recently feels like a brand that’s decidedly oversaturated at retail—announced this morning in its fourth quarter earnings report (PDF) that it plans to close 100 to 125 full-price stores over the next two years.

As of April, the company operated 827 retail stores.

The news resulted in shares of the company’s stock tumbling more than 9 percent during Wednesday’s premarket trading. The brand posted a net loss of $26.8 million.

CEO John Idol acknowledged that the current discount-centric retail environment has made selling full-priced merchandise a challenge for the brand, which is a regular in clearance bins at discount retailers including Nordstrom Rack and TJ Maxx.

“Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels,” Idol said in a prepared statement.

“In addition, our product and store experience did not sufficiently engage and excite consumers. 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.”

(Image courtesy of Michael Kors)

JCK Magazine Editor

5 responses to “Michael Kors to Shutter 100–125 of Its Stores”

  1. This is not surprising. My wife regularly picks up his accesories at Marshall’s and TJ Max. And we have a M. Kors store in our local mall. I’ve often wondered why anyone would buy anything at the full price location.

  2. Over-saturated retail footprint? Possibly…. However; as one who is married to a woman who loves her Michael Kors purses, their retail salespeople are AWFUL! We’ve been in stores from 5th Ave. NY to Las Vegas, Miami, here locally, where we live; it’s the same issue every time. Young lovely looking salesgirls (occasionally guys) who ‘glass-pocket’ customers the second they see them. BIG problem!!
    Deb and I have been paid to secret-shop some of our clients’ stores to see how their staff does (We’ve never been identified, either) and we can’t help but, laugh at how ‘old school snobbish’ the salespeople at MK act. If they had any idea who was shopping there… I’ve recruited some excellent talent into the fine jewelry industry from other categories, Louie Vuitton and Chanel for example but, I’ve NEVER asked for the card of anyone who works at a Michael Kors door. I wish I could say they’ll be some good prospects looking for work, but in my humble opinion, they’re not!

    • very good point, Jon. When the CEO John Idol refers to “enhance store experience” or “deepen consumer desire”, there are some first basics to maintain, which is courtesy, politeness and service. Sales personnel in these fast-growing brands too often have the Big Head.

  3. I have been less than impressed with what I’ve seen of the styling of their merchandise. And since I only shop in discount stores, that is where I’ve seen it.

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