Michael Kors announced plans to close between 100 and 125 of its full-priced stores over the next two years in response to increased competition from discount retailers.

Same-store sales dropped 14.1%, and the company's wholesale business, which mostly consists of  department store sales, dropped 22.8% in Q1, the company announced Wednesday. In response to these pressures, Michael Kors will shed 15% of its portfolio, a move that will counter the aggressive expansion the company pursued when its brand was hot.

The upscale chain said the closures should ultimately save around $60M a year, the Wall Street Journal reports. Michael Kors operated about 800 stores at the end of last year, and CEO John Idol said in additon to closures, the company will renovate more than 100 stores, introduce innovative designs and raise prices in an attempt to generate profitable growth. Idol also said the company will offer 40% less sales this year as part of a strategy to convince customers to spend more on their luxury goods.

Michael Kors shares dropped 7.9% in premarket trading to $33.42. The company reported a net loss of $26.8M or 17 cents a share for the quarter ending April 1, compared to net income of $177M or 98 cents a share in the year-ago quarter.