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Ralph Lauren and Michael Kors Make Headway in the War on the Discount Rack

  • Fewer markdowns help the two brands exceed profit estimates
  • Shoppers aren’t ‘fighting us’ on prices, Michael Kors CEO says
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Ralph Lauren and Michael Kors merchandise is less likely to be marked down these days, and that’s showing up on the bottom line for both companies.

The two fashion houses posted profit that handily beat analysts’ estimates on Tuesday -- a sign of progress in their efforts to get customers to pay full price -- and helped send the stocks soaring. Deep discounts had squeezed earnings in recent years and eroded the prestige of the brands.