Can we get a definition on what Luxury even is today? I’m no longer sure. Is luxury a logo? A better material (cashmere, silk, etc.) A country of origin strategy (made in Italy vs. China)? A better make, i.e. more handwork, more stitches per inch. Better service? I don’t think there is a consistent definition. But I do know someone’s got a lot of explaining to do to get this customer to buy a $700 T-shirt or $1000 hoodie.

Most companies would do better with a shortage of inventory, as long as it is they are short in the "right" inventory. This requires maintaining a delicate balance of fashion and core items. Lower inventories should help companies maintain higher margins as they will be -- or should be -- then less promotional. Basic supply and demand economics. As an industry, we need to ween ourselves off the "more is better" is mindset. Less inventory, less assortment, less stores, less friction. It all is part of right-sizing our businesses to profitable levels, that can sustain realistic growth on the go forward. The big shakeout is on.