DKNY Giving It Away - What about Brand Image?

I snapped this pic on Madison Avenue today.   While many of the designer boutiques are attempting to bring some normalcy back to the retail environment after those crazy holiday sales - DKNY is practically giving it all away.

When I saw this window - I couldn't help but cringe.   We all appreciate a bargain, but when you see this type of extreme mark down doesn't it make you think why is all this stock left?   I think your image of the company is diminished in the long run, and there is weakening of the brand.

 
It's hard to believe that a decade ago DKNY was as aspirational as any major label.   When advertising mastermind Peter Arnell first designed the company logo for Donna Karan and coined the DKNY nickname - the collection was hot!  

Now.... 90% off!!   At this point, why not dump the stock to off-price retailers?  The collection should just be sent down to Century 21.   Tourists expect huge deals there and the store could save face instead of having to sell the collection for 10%.