Sales Decline for Michael Kors ~ Closing 125 Retail Stores.

Via Fortune,

Michael Kors closing up to 125 stores this year. 
The brand reported on Wednesday that sales at stores open at least a year (comparable sales) fell 14.1% in its most recent quarter, and continue to fall sharply this year. 

What's more, Michael Kors' wholesale business, sales largely made to the struggling department store sector, fell 22.8% in the quarter.

Shares fell 6% in premarket trading. The company operates 827 stores, meaning the closings represent up to 15% or so of its fleet.

Michael Kors Chief Executive John Idol in a statement blamed "a difficult retail environment with elevated promotional levels" while conceding that the product and store experience had gotten a bit stale.

Yet the company has itself to blame for most of its woes by opening so many stores so quickly.

The idea at the time was to siphon off shoppers from rival Coach  by opening nearby stores at countless malls. For a while it worked, as Kors eclipsed the more established Coach a few years ago. 

But Coach, which had earlier opened too many stores and cheapened its brand, started closing stores three years ago, seeing this danger before Kors did.