The handbag retailer also swung to a quarterly loss from a profit as comparable sales dropped sharply. Fred Katayama reports.
Bleak quarter and outlook at Michael Kors. The handbag retailer swung to a quarterly loss. Comparable sales and total revenue dropped sharply and missed analysts' estimates. Kors said it'll shut down more than 100 full-priced retail stores in the next two years in a bid to turn itself around. Jefferies analyst Randal Konik said, "These moves show the 'reset' button has been pressed and management recognizes the need to reduce points of distribution further which will lead to a healthier brand." Luxury handbag and apparel makers like Kors and Coach have had a hard time selling bags at full price. And like other brick-and-mortar retailers, Kors has been facing slowing sales as customers spend less on apparel. Kors doesn't see things getting much better soon. The company issued a weak sales forecast, calling 2018 a "transition year". It sees same-store sales dropping in the high single digits this fiscal year. Kors' stock fell sharply at the start of trading, deepening its 16 percent loss this year.