Luxury fashion accessories retailer Michael Kors has announced it would shut over 100 retail stores in the next two years, as it struggles to climb out of a financial slump.
The US brand’s fourth quarter results painted a bleak outlook for the company’s future, falling 11.2 per cent to $1.06 billion (£83 million) in the three months to April 1.
Comparable store sales fell 14.1 per cent, and it made a net loss of $26.8 million (£20.86 million) compared to a net income of $177 million (£137.78 million) just a year before.
This huge net loss was bolstered by dwindling sales in its key US market, dropping 13.8 per cent to $273.76 million alongside a further dip across Europe.
Despite this, sales in Asia shot up to $117.1 million (£91.15 million) from just $38.8 million (£30.20 million) a year earlier.
READ MORE: Michael Kors records “disappointing” quarter
“Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels,” Michael Kors chief executive John Idol said.
“In addition, our product and store experience did not sufficiently engage and excite consumers.
“We acknowledge that we need to take further steps to elevate the level of fashion innovation in our accessories assortments and enhance our store experience in order to deepen consumer desire and demand for our products.”
It is not yet known which Michael Kors stores around the world, including the UK, are earmarked for closure.
Forecasts for the brand’s current fiscal year fell below analysts’ predictions with an estimated total revenue of $4.25 billion (£3.31 billion).
The bleak forecasts caused Michael Kors’ share prices to plummet this morning, dropping 4.1 per cent in premarket trading.