I've worked extensively with various luxury brands that do this (to be honest almost all of them do). The reason is almost always brand integrity, they don't wa

I've worked extensively with various luxury brands that do this (to be honest almost all of them do). The reason is almost always brand integrity, they don't want consumers to think of their brand as being cheap so they only ever discount to a point. Add to that that some brands will allow unsold stock to be returned - obviously this means the seller will only reduce the price to a certain point before it doesn't make financial sense. And finally in some cases it makes more sense from a tax perspective to write off the unsold stock as a complete loss than sell it at a low amount.