Hold Your Applause. Ralph Lauren, Michael Kors Are Not Showing Signs of Strength, Yet

Both luxury fashion companies topped earnings estimates but sales were still weak.

By Lindsay Rittenhouse

 “Remember when Krispy Kreme first came out and you had to go to their stores to get them?” Castro said. “As soon as they expanded and customers could start getting them at the grocery store, they became not special anymore.”

Last May, facing declining sales, doughnut maker Krispy Kreme sold itself for $1.35 billion to German food conglomerate JAB Holding, the same company that agreed to take Panera Bread Co. private in April in a deal worth $7.5 billion.

Castro applies that of why Krispy Kreme lost its appeal to both Michael Kors and Ralph Lauren—to survive, they must get their products out of outlets and department stores, narrow their availability. She does not expect retailers that fall somewhere in the middle on price, including Macy’s, to have a place in the evolving retail environment.

She added: “Put your seat belts on and get ready for a wild ride.”

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