After announcing a disappointing first quarter results, the US light brand Michael Kors said Wednesday it would close at least 100 stores.
In the first quarter, Michael Kors fell 11.2 percent to $ 1.06 billion. Excluding the impact of the new shop, same-store sales fell 14.1%.
The company said it would close its 100-125 full price stores to improve profitability. Retail sales firm GlobalData Retail CEO Neil Saunders pointed out that Michael Kors’s sales performance is “catastrophic.”
“Michael Kors’ sales have fallen sharply, which makes it difficult to believe that the company’s initial recovery plan will help it get back on track,” he said in the report.
He said that while Michael Kors is working to reduce promotional activities to rebuild the brand image, many customers have abandoned the brand.
“Looking to the future, it is clear that Michael Kors will go further and he says Michael Kors has lost a lot of faithful customers who have no reason to go back to the brand store,” Saunders said.