Luxury-goods sellers are keeping the champagne on ice.
Dwindling mall traffic and sluggish tourism are taking a toll on U. S. department stores, a key channel for companies like Ralph Lauren Corp. and Michael Kors Holdings Ltd. The two fashion houses and handbag maker Coach Inc. offered gloomy forecasts this week, saying excessive discounting may be hurting their brands.
‘The amount of promotional activity from many of the people who carry our line was at its all-time high, and we had to compete to be able to move our inventories during that period of time,’ Michael Kors Chief Executive Officer John Idol said Wednesday on a conference call. ‘That’s the whole cycle we are going to get ourselves out of.’
This post was published at David Stockmans Contra Corner by Stephanie Hoi-Nga Wong, Bloomberg Business ‘ August 11, 2016.
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