Status quo wise yes they are. A lot of the big fashion houses that insisted they would NEVER create a low-brow brand from their main, have done so.
Marc Jacobs,Versace etc.
Roberto Cavalli - Just Cavalli
A lot of these houses are also working with places like Target and H&M-Lanvin (something they never would've done if not for the sinking economy).
These places are losing money big time. Cheap-o brands like forever21 and h&m are winning in this economy.