Major Upscale Fashion Brand Closing Over 100 Stores
If you're into luxury fashion, it might interest you to know that a major upscale fashion brand is closing over 100 stores over the next two years.
Michael Kors recently released its fourth quarter and annual fiscal results for 2017, and has announced that it intends to close between 100 and 125 of its retail stores over the next two years.
The company stated that total revenue decreased 11.2 percent, to $1.06 billion from $1.20 billion in its fourth quarter of fiscal 2016.
"Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels," said John Idol, the Company's Chairman and Chief Executive Officer. "In addition, our product and store experience did not sufficiently engage and excite consumers."
In the fourth quarter, Michael Kors reported impairment charges of $193.8 million, which was, according to the company, primarily related to underperforming lifestyle stores.
The company expects the store closures to improve its profitability.
"Looking ahead, as we expand the fashion innovation in our accessories assortments, right-size our store fleet and elevate our store experience, fiscal 2018 will be a transition year in which we establish a new baseline before returning to long-term growth," said Idol.
It remains to be seen whether the Michael Kors location at Square One will close as a result, but consumers may want to keep their eyes peeled for sales and closing signs.
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