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00:00:01
>> Michael Kors, once one of the hottest names in the hand bag market, announcing Wednesday it will close up to 125 stores over the next two years. The luxury retailer seeing a fourth quarter loss, with shares plummeting over 10% Wednesday to their lowest level in more than five years.
00:00:21
The label has been a victim of its own success, expanding much too rapidly, from 177 stores in 2011 to 816 stores now, at a time when more customers are shopping online. Back in 2014, Kors, led by its celebrity designer, overtook Coach as the largest handbag maker in the US.
00:00:44
But now, it's struggling to shed its image as an over-exposed brand that can be bought at discount stores like TJ Maxx. Kors decision to scale back comes just as Coach is expanding, announcing recently that it's buying Kate Spade for $2.4 billion, as the overall handbag industry struggles with declining sales.
00:01:05
Kate Spade's funky designs, popular with millennials, could give Coach and edge over Kors in the future.