In fact, once the smash hit Michael Kors is now like rolling to the mountain snowball, the problem is getting bigger and bigger, and the faster the faster roll.
Recently, MK released the second quarter of fiscal year 2017 and the full year’s financial report, the fourth quarter, MK’s total revenue of 1.06 billion US dollars, down 11.2%; net loss of 26.8 million US dollars, while the same period last year net profit of 177 million The dollar, can be described as “worlds apart.” Gross margin fell 11.1% to $ 619 million. MK’s comparable sales in the fourth quarter are also down, down 13.6% year on year, 12.4% lower than analysts expected.
The Group is also not confident in the first quarter of 2018 fiscal year, is expected to further reduce the revenue in the $ 910 million to $ 930 million. Group CEO John D. Idol admitted in the earnings of the Group’s products and stores failed to inspire consumer interest, and said the worst performance of the past fiscal market is still full of challenges.
As a result of the sluggish performance, MK decided to close 100 to 125 physical retail stores in the next two years to improve profitability. And closed the store will be the full price of the shop, will not be involved in the main discount village shops.
In fact, Coach and MK are born in New York’s light luxury brand, in 2011, Coach is the largest US market share of the brand, with 32% market share. But in 2014 suffered a turning point, Caoch in the North American market by the MK challenge, share decline.