May 31 (UPI) -- Luxury retailer Michael Kors Holdings Ltd. will close 100 to 125 stores in the next two years, it announced Wednesday.
The New York-based company is known for handbags, watches and other accessory and clothing items. It is among many retailers reporting declining sales and traffic at stores because of consumers' preferences for ordering products online. It has also been unable to sell its many of its goods at full price, requiring use of what CEO John Idol said in a statement was "elevated promotional levels."
End-of-fiscal-year information released Wednesday indicates there were 668 Michel Kors stores worldwide as of April 1, compared to 827 stores on the same day last year. The data also revealed a fourth-quarter loss of $26.8 million, compared to net income of $177 million one year ago. Total revenue fell 11.2 percent and sales declined 14.1 percent in the past year.
Michael Kors' stock price fell over 9 percent in pre-market trading Wednesday. It declined 15 percent in the past 12 months.
"For the first quarter of fiscal 2018, the company expects total revenue to be between $910 million and $930 million, and a comparable sales decrease in the high-single digit range," Wednesday's statement said.