125 Michael Kors Stores Shutting Down

For those of you who are currently clenching onto a Michael Kors hand bag, rely on your Michael Kors watch for the time, or wear Michael Kors sneakers when you are out for a run, we have some unfortunate news to share. Due to morose quarterly results, Michael Kors announced that it would shut down over 100 stores. There was no other choice in the cards.

Unfortunately, the company disclosed that it would shut down 100-125 full priced stores in the effort to improve it’s overall profit. More specifically, in the quarter that ended in April, the fashion brand’s total sales dropped 11.2% to $1.06 billion. Furthermore, the same store sales plunged 14.1%.

Kors has been trying to rebuild reduced promotions, but he doesn’t seem very optimistic about the future of his luxury handbags. He wrote to clients on Wednesday, “Michael Kors’ precipitous drop in sales does very little to reassure that the company’s nascent recovery program is on track.”

Additionally, the luxury retail store has not supported it’s customers, which has added fuel to the flame. Michael Kors CEO John Idol said in a statement, The company faces “a difficult retail environment with elevated promotional levels.” He also acknowledged that the environment of the store didn’t engage or invite customers in.

Therefore, the company is aiming to strategically place Michael Kors stores in the future. However, a Michael Kors spokesperson refused to list which stores or jobs would be cut due to the vast number of store closures. The company did say, on the other hand, that the store closures would save over 60 million dollars for the company all together.

Despite the company saving money, it appears that the Michael Kors slump may prolong as long as 2020. But, the company will not be fully closing down anytime soon. Make sure to check out Michael Kors for the latest trends and styles for luxury accessories and help save the beloved designer hand bags.