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Michael Kors has had enough with department stores’ excessive discounting.

After reporting a 7 percent decline in its wholesale business during the fiscal first quarter, CEO John Idol told analysts that come February, the accessories brand will no longer participate in department stores’ broad-based friends and family sales, or accept coupons for its products there.

The label will also move forward with its strategy to cut back on the amount of merchandise it ships to these retailers, as it looks to rebuild the pricing power it’s lost with shoppers. Because the brand is constantly on sale, consumers have forgotten the true value of the product, Idol said.

These discounts once again damaged its revenue and profit margins in both wholesale and stand-alone stores, Idol added. Michael Kors’ same-store sales slid 7.4 percent during the fiscal first quarter, steeper than Retail Metrics’ forecast for a 4.2 percent decline.

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“It’s creating confusion in the consumers’ mind relative to the value of the Michael Kors brand when it’s being seen so often on sale in so many different places,” Idol said. “We have to correct something that we think is actually having a negative long-term effect for the brand.”

Because of this pullback, Idol told investors they should expect to see further degradation at department stores for the remainder of the year and into 2017. The company has already started dialing back the number of goods it sends to department stores, a strategy it had previously announced.

Kors’ comments come just one day after competitor Coach said that it will exit about 25 percent of the 1,000 department stores where it sells its product. Like Kors, Coach is trying to regain control over the prices charged for its handbags. Unlike Coach, Kors will not pull its brand from any locations.

Michael Kors’ products are sold at retailers including Nordstrom and Bloomingdale’s. Macy’s generates the largest chunk of its wholesale revenue and accounted for 12.7 percent of its total sales last year.

The company reported fiscal first-quarter earnings of 88 cents a share on revenue of $987.9 million. That compares with 87 cents a share and $986 million in sales during the prior-year period. Analysts had been expecting the company to report earnings per share of 74 cents on revenue of $953 million, according to Thomson Reuters estimates.

Also hurting Kors during the quarter was a slowdown in travelers visiting the United States, with sales in tourist-dependent cities including New York getting hit particularly hard. Shoppers’ preference for smaller handbags, which carry a lower price tag, once again weighed on the company’s sales.

Still, management maintained its full-year guidance for revenue and earnings per share, saying it expects growth in its men’s, digital and international businesses to offset the decline at department stores. The label will likewise launch smartwatches and smart jewelry in September, which management said should moderate some of the slide it’s experienced in its watch business. That was the brand’s weakest-performing category in the quarter, posting a double-digit sales decline.

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For the full year, management expects revenue to come in flat, at roughly $4.7 billion, with earnings per share between $4.56 and $4.64. The company did, however, lower its outlook for comparable sales. It now expects this metric to decline in a mid-single-digit range, versus its prior guidance for a low-single-digit drop. Its fiscal second-quarter earnings per share guidance likewise fell short of Wall Street’s expectations.

“I don’t want you to think that we don’t understand there will be a decline in certain categories because of this,” Idol said. “We absolutely understand that and quite frankly want that because we want to ship less units at lower prices … that is not the way ultimately to build a luxury business.”

Instead, the company plans to sell fewer units at higher prices — something Idol said should, over time, balance out on its top line.

Investors weren’t quite as convinced. Shares of Michael Kors were lower Wednesday, even after the wholesale category posted a much narrower decline than analysts had expected. Michael Kors’ reliance on department stores, where it generated 40 percent of its sales during the quarter, has been one of the biggest concerns among bearish investors.

“We continue to believe the brand is over distributed, and while the company is doing the right thing by reducing exposure to the wholesale channel, we believe much of the damage has been done,” Citi analyst Paul Lejuez said.

From CNBC, @AITBAGS

Keep a watchful eye on doesn’t mean you should refresh your wardrobe with a large number of on-trend items when the seasons changed. It is a pretty penny to save if you build a great wardrobe which is based on timeless foundation pieces, and then refresh it with some trendy items so as to liven up it. But how could you know which pieces are actually those foundation and timeless items? Therefore, before heading to your local clothing, discount designer bags shops, read following!

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1. Black heels

Some women gravitate toward sneakers, while others might have crush on flip-flops. However, have you found that a pair of basic black pumps works in various occasions, and have you ever heard the black pumps will be out of style? Any collocation does work with the black pumps. Hence, when you are planning to buy a pair of black pumps, stick to high-quality one.

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On the other hand, go for a closed, almond-shape toe. While both round-toe and pointy-toe pumps have their own shining time, the almond-shape never be out of style. You have better buy it on real store instead of online, as you know, besides looking beautifully, perfectly fit and comfortable are more important, you don’t want to feel prey to your heels on the street.

2. Dust coat

Since 1800s, the dust coat firstly appeared in vogue, it seems that it doesn’t plan to fade in the fashion world. It is appropriate at times to perfectly match your pants or dress, totes handbags with it. It’s perfect for drizzly days in the fall and spring. The classic style should be your sake if you would like to own the timeless dust coat, such as medium lapels, double-breasted bodice and a tie at the waist.

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3. Deep color jeans

I think every woman has at least a pair of jeans on wardrobe, they are the most common items in our everyday look. Though you could find jeans easily in every year’s fashion week street style, just add the plain, dark one, as for the shape, of course you could feel free to choose according to your body shape.

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4. Neutral Satchel

For me, adding cheap designer bags just like a common meal. Opt for classic and all-match style would be great, if you are willing to add a designer bag on your wardrobe and want to save budget.

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5.LBDs

No matter you are going to work, date or party, it does work. It fit closely all the way down the body.

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Please credit to 5 Must Have Dateless Fashion Items on Your Wardrobe

Are you busy with your special day or evening? As a businesswoman, sometimes I need to go through 2 or 3 different occasions for one day! Or during weekend, when I gone to the gym fitness or go shopping with my friends, a phone call comes, I must go to the office immediately so as to handle a hard nut to crack. I’m not here to complain my busy life, I don’t even care.

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But how could you change your gym suit to office or dinner look in such a hurry? Since I don’t actually carry my entire wardrobe in my car. I’ve all-too-often found myself racing home for a quick change.

Transform your style quickly doesn’t mean just change the whole look for the appointment in a hurry. Instead, making full with your accessories including jewelry, women leather handbags that are able to make an impact on your whole look!

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1. Use the scarf

Scarves are seen as one of my favorite accessories to transform my common look to the noble one. Different patterns and styles as well as different wearing ways cause different styles of your look!

Moreover, it is a cheap accent that is able to draw huge impact, especially the one with eye-catching patent. Any collocation of solids looks more current wen worn with just one standout patterned piece, so don’t feel like you need to delve into print mixing! Plus, try to change your belt to a piece of scarf, you will find surprise on it.

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2. Fashion bags

Every woman has more than one bag on their wardrobe. Various of colors and styles of handbags make it difficult to choose according to your style. Therefore, every season when you are prepared to refresh your closet, pay more attention on those fashion designer handbags which is suitable for office and party look. As the fashion bags make a huge different in your overall look. On the other hand, sale cheap designer bags can make bags an uber-cheap way to stretch your wardrobe.

Another shining way to make a quick change with your handbags is tie a charming scarf on it, it is an easy way to transform your office bags to the party one.

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3. Cuff changes

Roll up the cuff and try adding a pair of flats, your causal Sunday look be showed on the perfect way; wear them long by matching it with the pointed heels and it is date night party time!

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4. Shoes

Keep a pair of shoes on the place such as the office desk or in the back of your office, they will help.

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