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Michael Kors CEO Sums Up Brick-And-Mortar Crisis In Two Sentences

Michael Kors CEO John Idol broke down in two sentences why brick-and-mortar retailers could be in big trouble. Traditional retailers are embracing e-commerce strategies, but it may be too little, too late.

Michael Kors' operating margins, for example, dipped 2.5% from Q3 '15. During an earnings call last week, Idol said e-commerce generates a "lower operating profit for us than four-wall brick-and-mortar."

Plus, there's a new trend of people buying multiple sizes to try them out at home, before returning the rest. "That all is a negative headwind for us," Idol says.