Michael Kors will close more than 100 stores
31.05.2017 5606

Michael Kors will close more than 100 stores

Michael Kors Holdings Ltd. joined the list of retailers who are reducing the number of their retail outlets. For two years, the retail chain of the luxury shoe and accessories brand, founded by American designer Michael Kors, has been reduced to 100-125 stores, writes U.S. footwear news, citing the holding’s fourth-quarter earnings report.

According to John Idol, head and CEO of Michael Kors, due to the large number of promotions, the company's sales in the fourth quarter decreased by 11,2% to $ 1.06 billion.

“The fiscal 2017 year was difficult because we had to work in a difficult situation for the retail business, with increased advertising costs,” Idol said. “We recognize that we need to take further steps to increase the level of innovation in the field of fashion in our accessory collections and work on a retail concept in terms of customer satisfaction and increased demand for our products.”

In addition to store closures, the company gave a disappointing forecast - in the first quarter of 2018, the holding’s total revenue could amount to $ 910 million - $ 930 million, which is lower than analysts had expected earnings of $ 950 million.

Throughout the year, the company predicts revenue of $ 4,25 billion.

According to the management of 2018, the year should be a transition year for the company when a new base level is created, after which a return to steady growth is expected.

It is assumed that the closure of retail outlets will provide businesses with savings of about $ 60 million per year.

Michael Kors Holdings Ltd. joined the list of retailers who are reducing the number of their retail outlets. For two years, the retail chain of the luxury brand of shoe apparel and accessories based ...
5
1
Rating

Latest News

Fendi and Burberry will close boutiques in Russia

In August 2024, Fendi (part of the LVMH group) will close its last boutique in the Moscow TSUM, and Burberry in GUM, writes Kommersant, citing data from the reports of the Russian subsidiaries of these...
15.07.2024 165

Brunello Cucinelli reported sales growth of 14,1% in the first half of 2024

Italian luxury brand Brunello Cucinelli reported preliminary results for the first half of 2024, with revenue of 620,7 million euros. Sales increased by 14,1% at current exchange rates and by 14,7% excluding...
12.07.2024 571

On the most fashionable street in St. Petersburg, street retail rent increased by 1,5 times

Bolshoi Avenue of the Petrograd Side has been the main Fashion thoroughfare of the Northern capital for many years. Over the past year and a half on this street, according to the consulting company NF Group, the share of vacant space has decreased by 5 percentage points and...
12.07.2024 731

Jacquemus and Nike presented a new collaboration for the Olympics in Paris

An updated Nike Air Max 1 sneaker, a new version of the Swoosh and a capsule collection of sportswear are the result of the latest collaboration between French brand Jacquemus and American sports giant Nike. Collection…
11.07.2024 624

Shoes of the season - luxury flip-flops

Flip flops are back. Or rather, they have already returned to fashion this summer, although now they are not just rubber shoes. The trend for chic and comfort dictates its own rules. Now flip flops and other types of flip-flops must be made of natural...
10.07.2024 669
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning