The American company, known worldwide for its luxury fashion, is set to close more than 100 stores following a challenging year that has seen revenues decline.
According to Michael Kors Fourth Quarter and Annual Fiscal 2017 Results, in the past year the company's total revenue fell 11.2% and its sales declined 14.1%.
As a result, the company announced it will close between 100 to 125 of its full-price retail stores over the next two years.
“In the fourth quarter of fiscal 2017 the Company recorded impairment charges of $193.8 million primarily related to underperforming lifestyle stores,” read a statement from Michael Kors. “In addition, the Company announced today that it intends to improve the profitability of its store fleet by closing between 100 and 125 of its full-price retail stores over the next 2 years. Over this time period, the Company expects to incur approximately $100 - $125 million of one-time costs associated with store closures. Collectively, the Company ultimately anticipates ongoing annual savings of $60 million as a result of store closures and the lower depreciation and amortization associated with these impairment charges.”
At this moment in time, it’s unknown which specific retail stores will be closed.
Social media has since reacted to the news in typical fashion:
Michael Kors is closing up to 125 stores
If you appreciate what we do, we ask that you consider supporting our local independent news platform.
If you get value from KelownaNow and believe local independent media is important to our community we ask that you please consider subscribing to our daily newsletter.
