Luxury Sellers Issue Gloomy Forecasts as Mall Traffic Wanes

  • Coach, Michael Kors give muted outlooks despite profit beats
  • Ralph Lauren rises on optimism about new CEO’s turnaround plan

Ralph Lauren Profit Boosts Optimism

Luxury-goods sellers are keeping the champagne on ice.

Dwindling mall traffic and sluggish tourism are taking a toll on U.S. department stores, a key channel for companies like Ralph Lauren Corp. and Michael Kors Holdings Ltd. The two fashion houses and handbag maker Coach Inc. offered gloomy forecasts this week, saying excessive discounting may be hurting their brands.