How core is this? While Quiksilver and a other action brands are slashing prices in their stores, the “evil empire” of A&F has decided they’re not going to discount anything, according to a story in The Wall Street Journal. Why? “To protect its margins and hip reputation.” Wall Street, however, is worried.
“We hear your concerns,” said Chairman and Chief Executive Michael Jeffries in an earnings call with analysts last month, but “promotions are a short-term solution with dreadful long-term effects.” Marking down clothes now could lead to the brand being seen as something cheap, he explained.
Wise words from a fashion retail mastermind.
[Link: The Wall Street Journal]
Well maybe they are not stocked to the gills with inventory they need to get rid of which puts them in a good position to not discount.
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