There may be fewer Michael Kors handbag sightings in Los Angeles — and more in Asian cities — in years to come.
The company announced Wednesday that it would close 100 to 125 full-priced retail stores in the next two years as it struggles with its turnaround strategy in the United States and focuses on expansion in Asia.
Michael Kors Holdings Ltd. has not yet disclosed which locations will be closed and when, the Los Angeles Times reported.
As of April 1, the retailer had 827 stores, up from 668 stores the same time last year. It has at least 13 stores in Los Angeles including locations at the Grove and Beverly Center, according to the company’s website.
The store closures are expected to save the company about $60 million a year, CEO John Idol said during its Wednesday earnings call.
Idol said the company will focus on expanding into Asia in “key cities” with plans to open 50 new stores this year. It will also renovate about 100 of its existing stores in North America over the next two years.
Neil Saunders of GlobalData Retail said in a note that the firm’s retail figures were “catastrophic” and could fall further if it does not successfully reinvigorate its offerings.
“The brand is nowhere near where it needs to be if it wants to excite and inspire consumers,” Saunders said. [LAT] — Subrina Hudson