It is interesting to note that a multitude of luxury brand companies were sold to the stock market the past couple of years as speculative funds surged: Micheal Kors, Fendi, Coach, Jimmy Choo, Mulberry, Prada, Sothebys, Ferrari…to name just a few.
It is likely that these cash-outs by founders and early investors were excellent timing for them, and bad timing for those who bought the shares. The bursting of Chinese credit, housing and stock bubbles have coincided with a weakening of sales as aspirational buyers run out of buying power.
In addition, as mentioned here this week, the supply of used clothes for sale is on a scope and scale never before seen in human history. Trends of reduce, reuse and recycle are worldwide and deflationary. Precious metals (gold and silver below) seem to agree.