“Recent seasonal clearance activities show that retailers either have excessive inventories on hand or foreseeable consumption is no longer on the level that was planned,” said Brenda Wang, founder of Brandxcel, a Hong Kong-based consultancy firm that advises luxury brands on operating in Asia.
“At this stage, if you have very seasonal products, you have to take a view on whether you should cut your losses.”
Executives, however, refuse to draw conclusions about a slowdown that only recently started to dent earnings in the past quarter.
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