Michael Kors said Wednesday it will shut down at least 100 stores following dismal quarterly sales results.
The fashion brand’s total sales fell 11.2% to $US1.06 billion in the most recent quarter ended April 1, and same-store sales plunged 14.1%.
The company said it will close between 100 to 125 full-priced stores to improve profitability.
Neil Saunders, CEO of the retail consulting firm GlobalData Retail, called Michael Kors’ sales results “catastrophic.”
“Michael Kors’ precipitous drop in sales does very little to reassure that the company’s nascent recovery program is on track,” he wrote in a note to clients on Wednesday.
He said many customers have abandoned the luxury handbag brand for good, despite Michael Kors’ efforts to rebuild the brand by reducing promotions.
“Looking ahead, it is clear that Michael Kors has further to fall,” Saunders wrote.
The brand has failed to give once-loyal customers a reason to return, he said.
“In truth, ranges and collections lack oomph and definition, and across many established stores levels of service and merchandising are lacklustre,” Saunders wrote. “In short, the brand is nowhere near where it needs to be if it wants to excite and inspire consumers.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.