Michael Kors, the once-popular retailer that has been trying to turn itself around, said it will shut at least 100 full-price retail stores in the next two years.
There are eight Michael Kors locations on Long Island. The company has not disclosed which locations will be closed and when.
Shares of the company fell about 8.5 percent, to close at $33.18 Wednesday. They are down more than 20 percent in the past 12 months.
Michael Kors Holdings Ltd, once the hottest name in affordable luxury bags and accessories, has been grappling with declining same-store sales for the past seven quarters as fewer people visit its stores, flocking instead to rival Coach Inc. and shopping online.
Kors said on Wednesday sales at stores established for more than a year fell 14.1 percent in the fourth quarter ended April 1. Analysts had estimated a fall of 13.4 percent, according to research firm Consensus Metrix.
The company said on Wednesday it would close 100 to 125 full-price stores over the next two years due to intense price competition from other retailers. It expects to take $100 million to $125 million in related one-time costs.
As of April 1, Michael Kors had 827 stores, according to the company.
To deal with the lull in sales, the retailer has been expanding into dresses and menswear, investing in its online business, and reducing supplies to department stores, which have been discounting heavily to bring back shoppers.
These efforts, however, are yet to show the results that investors are looking for.
Kors said it expected revenue of $4.25 billion for fiscal year 2018 and also forecast a high single-digit drop in same-store sales.With Daysi Calavia-Robertson