Michael Kors will close up to 125 stores

Los Angeles /
Jun.June 01, 2017 12:00 PM

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


Related Articles

arrow_forward_ios
PPIH President & CEO Naoki Yoshida and TPG Capital Partner Paul Hackwell (Linkedin, Getty)
TPG Capital selling SoCal-based Gelson’s Markets
TPG Capital selling SoCal-based Gelson’s Markets
MDT Properties Marc Tavakoli and 627-631 N. Dillon Street (Google Maps, iStock/Illustration by Alexis Manrodt for The Real Deal)
Shovel-ready site in Silver Lake trades for $3.5M
Shovel-ready site in Silver Lake trades for $3.5M
(iStock)
LA County sued over commercial eviction moratorium
LA County sued over commercial eviction moratorium
The future of San Francisco’s Oceanwide Center is up in the air again (Getty, Foster and Partners)
Contractors pull out as Oceanwide Center sale falls through again
Contractors pull out as Oceanwide Center sale falls through again
Gov. Gavin Newsom (Getty)
Statewide curfew means more bad news for restaurants, retailers
Statewide curfew means more bad news for restaurants, retailers
Granite CEO Michael Dardick and Industrious CEO Jamie Hodari
Industrious partners with landlords to offer tenants satellite workplaces
Industrious partners with landlords to offer tenants satellite workplaces
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske
Northwestern Mutual picks up Santa Monica office campus for $166M
Northwestern Mutual picks up Santa Monica office campus for $166M
Macerich CEO Thomas O’Hern and Santa Monica Place mall
Here’s what tenants are paying at Macerich’s Santa Monica Place
Here’s what tenants are paying at Macerich’s Santa Monica Place
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...