It wasn't too long ago consumers were paying a premium to look and feel like a million bucks. But the recent rise of online retail channels like Amazon.com have started to disrupt the pricing power the luxury market once held.
Name brands are now resorting to heavy discounting to support the top line and keep pace with broader consumer discretionary space. This has not only come at the cost of margin growth but also investors holding these beaten down stocks.
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The tough retail environment is only likely to continue heading into the peak retail weeks of earnings season. We get an early look at the space over the next few days with reports from Kate Spade, Estee Lauder and Weight Watchers. These are popular brands that might have consumers looking great but will keep investors dejected.
Year-to-date stock performance