For the fourth quarter Michael Kors’ net sales fell 11.3 per cent. During the fourth quarter, the company swung to a net loss, with total revenue decreasing 11.2 per cent. Michael Kors now expects same-store sales for the first quarter to decline in the high single-digit range.
The luxury retailer plans to close between 100 and 125 full-price retail stores over the next two years. This move is an important step in rightsizing points of distribution, which will improve long term brand equity, capital return and margin structure.
Michael Kors, among many of its peers in the retail space, has been hurt by lagging sales and dwindling foot traffic as more shoppers choose to ring up purchases online. Further, the retailer has had a difficult time marketing its products at full price.
Fiscal 2017 was a challenging year as the brand continued to operate in a difficult retail environment with elevated promotional levels. In addition, its product and store experience did not sufficiently engage and excite consumers.
Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready-to-wear. The company, established in 1981, currently produces a range of products like accessories, footwear, watches, jewelry, men’s and women’s ready-to-wear, eyewear and a full line of fragrance products.
