13 Designer Brands That Used to Be Luxury But Are Now Just Overpriced

Designer brands have long been a way for consumers to invest in premium items, and many items carried the kind of craftsmanship, materials, and exclusivity that justified a hefty price tag. But somewhere along the way, many of these brands traded quality for mass production or corporate buyouts while prices kept climbing. The result? Products that look luxe but don't feel it.

As a savvy shopper, you can still save money at your favorite retailers without sacrificing quality as long as you know where to look. Here's the inside scoop on which once-prestigious labels no longer deliver the value their price tags promise.

Coach was founded in 1941 and became synonymous with stylish, luxury handbags. In the 1990s and early 2000s, the brand was at the forefront of the "It Bag" trend. Its success led to an expansion into apparel, shoes, and accessories.

In recent years, expansion into outlet malls and a reliance on nostalgia-driven designs have hurt its edge with parent company, Tapestry, reporting a downturn in sales. With bags at $400 or more, it might be best to look elsewhere for true quality.

With the acquisition of Versace in 2018, Michael Kors seemed a permanent fixture on the luxury goods landscape. Unfortunately, concerns with quality and customer support have since plagued the designer brand. Consumers report issues such as belt buckles falling off, stitches unraveling, and a lack of luxury mainstays.

The brand is now getting a mid-tier price revival via a partnership between Capri Holdings and Amazon. For discerning shoppers,this might seem like more hype than high fashion.

Can you call something a luxury brand if it's available at Walmart? Over 1,000 CK products are available at the retailer, with prices ranging from $26.99 for underwear to over $1,000 for area rugs.

Yet Calvin Klein goods were once considered premium and had campaigns featuring megastars like Justin Bieber and David Beckham. Today, many customer reviews of Calvin Klein report multiple issues with quality and customer service, suggesting that even the lower Walmart prices are possibly too high.

Kate Spade New York, another brand owned by Tapestry (like Coach), is the design house behind the 1990s handbag sensation, the "Sam" tote. Yet this year, the brand's sales are down by 6%, year over year.

A tote from the current collection can set you back $398, but a larger issue stems from what the bags are made of. Recent reports show continued use of mohair and alpaca fleece despite PETA pressure. For shoppers prioritizing ethics and durability, that's a high price for questionable materials.

Debuting in 1985, Tommy Hilfiger perfected the relaxed-yet-refined East Coast look. But widespread licensing and outlet saturation have blurred its upscale image. In fact, a pair of Tommy jeans can be purchased for under $100.

This doesn't mean they aren't overpriced, though. According to TrustPilot, quality, fit, and support issues are all common. Alleged poor conditions in factories could also be contributing to poor garment quality.

For many, Dior is one of the top luxury brands, dating back to the creation of the Christian Dior Fashion House in 1946. But are Dior products worth the price? The new D-Motion bag costs $4,250 and could represent a decent investment. Yet Dior recently hit headlines for its unethical supply chain.

The accusation is that workers in some manufacturing facilities are being exploited. However, Dior is not alone, and around another dozen luxury brands are also being investigated for poor or exploitative practices.

Famed for its trench coats and check patterns, Burberry was once a British aristocrat's uniform. But a 22% drop in retail revenue and reports of declining fabric quality raise questions about whether a $3,150 trench is still worth it.

A new CEO and 1,700 job cuts don't help with the quality concerns, leaving many shoppers looking second-hand for the real deal.

Remember when Rachel from Friends got that job at Ralph Lauren in 1998? Back then, the designer brand was considered the epitome of luxury. However, the brand's efforts to become more accessible have somewhat diluted that status — with a transition from limited-edition collections to mass production across five continents.

When $125 polos are indistinguishable in quality from mid-tier mall brands, you're better off scoring them during outlet sales.

Donna Karen New York (DKNY) was the luxury hit of the late 1980s and 1990s, bringing inner-city energy to women's clothing. Yet today, you can pick up DKNY apparel in many outlet stores.

DKNY clothes are generally mid-range in price, but they're also made of less-than-premium materials. So, while they can represent good value, they're not necessarily a luxury buy.

Once a symbol of Italian luxury, Gucci's exclusivity has been dented by the presence of genuine pieces in off-price retailers like TJ Maxx along with an endless wave of fakes. In fact, there are so many fakes and dupes that online guides exist on how to spot the difference between a genuine and a counterfeit Gucci bag.

With so many people sporting faux-Gucci items, real Gucci products are starting to lose their premium standing.

Versace was famed for unapologetic glamour, but under Capri Holdings, it drifted into mass production the diluted quality. However, it was recently acquired by Prada — a move that could restore its prestige, but the years of overexposure and $1,500 poly-blend dresses have left scars.

When Tory Burch debuted in 2004, her preppy-chic pieces sold out instantly. Unfortunately, it appears that attempting to appeal to a broad audience has diminished the luxury status associated with this brand.

Tory Burch apparel is now sold in over 3,000 department stores and other retailers, as well as the 250 Tory Burch boutiques. This designer gear is sporty, preppy, but certainly not exclusive.

Since 1859, Louis Vuitton has been the gold standard of luxury trunks and leather goods. Today, though, its name is everywhere — from Formula 1 sponsorships to mass-marketed collaborations — and the name itself could be losing its luxury tag. With $2,000 totes often made from coated canvas, you're paying for branding more than unmatched craftsmanship.

"Designer" doesn't always mean "luxury." Thankfully, there are still heritage brands weathering economic turbulence and delivering quality goods worth the price tag. Hermès, for example, posted a 9% growth in the last quarter by focusing on impeccable leather craftsmanship.

If you do find yourself in the position to splurge on a little bit of luxury, though, be sure to use a top cash back credit card to make the most of your purchase.