US accessories and clothing brand Michael Kors has announced it will close up to 125 of its full-price stores over the next two years in a bid to improve the “profitability of its store fleet”.
Comparable sales at the New York Stock Exchange-listed group fell 14.1% in the fourth quarter ending 1 April 2017 and total revenue fell 11.2% to $1.06 bn from $1.2bn in the same quarter last year.
Chairman and chief executive officer John Idol said the brand acknowledged it needed to do more to excite consumers: “Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels. 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 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, fiscal 2018 will be a transition year in which we establish a new baseline before returning to long-term growth.”
There were 728 Michael Kors stores worldwide at the end of the fourth quarter of the 2015 financial year.