Michael Kors announced it will close between 100 and 125 stores over the next two years, in yet another nod to the weakening retail market.
“Our product and store experience did not sufficiently engage and excite consumers,” CEO John Idol said Wednesday. The company is down to 614 full-price stores as of April 1, from 800 stores at the end of 2016.
Stocks in the company fell 10 percent to their lowest point in more than half a decade after the news, according to CNN. Overall this year, shares in the company are down 24 percent, according to the network.
Idol said the fashion label, best known for its signature handbags, will put an emphasis on e-commerce. It’s also going to raise prices to compensate for the drop in foot traffic, according to the Wall Street Journal.
The retail market has been struggling for the past 18 months in New York City. Last month, Ralph Lauren announced it will close its Polo store on Fifth Avenue, the company’s largest retail location, and some retail landlords are turning to pop-up tenants to fill stores amid ongoing vacancies.