We’ve opened a bearish trade on apparel retailer Michael Kors (KORS). KORS is scheduled to release its quarterly earnings on Tuesday, Feb. 2, before the market opens, and the company is facing some stiff headwinds.

High-end retailers, like KORS, have been struggling after one of the weakest holiday-shopping seasons since 2009. The concern has to do not only with stand-alone KORS retail locations but also with the weak performance of the large department stores, like Macy’s (M), that carry KORS products. Shoppers have seen increased price discounts to move items off the shelves. This is not going to do any favors for KORS’ margins, which have been slowly contracting.

We expect that the stagnant global economy is going to continue to weigh on the company’s performance and that KORS management will lower revenue and earnings expectations for 2016.

Earlier this month, KORS broke below the up-trending support level of the consolidation range it had been in since July 2015. The recent bounce off of support at $35 appears to be a re-test of the former support level just below $40 that is now holding as resistance. We are looking for KORS to drop back down to $35 and challenge that support level.

To play that move, we recommend the following:

‘Buy to open’ the KORS March 35 Puts (KORS160318P00035000) for a maximum price of $1.50.

Additionally, you should have some profits to take in the McDonald’s (MCD) calls we recommended last week.  While MCD has been doing well since its stellar earnings announcement, the rest of the market is feeling the bearish pressure of falling oil prices.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news.