How is this any kind of problem? They trade on the brand, obviously.
In the meantime, in a rational market, a product commanding a 50x markup would quickly have its price driven down by competitors, which is more evidence that our markets are dishearteningly irrational. Profit represents market inefficiency.
In other news, it cost around $4 to mine each carat of Canadian diamond worth $100.
Similarly, Markets are not a monolith so this doesn't prove anything about markets in general. Economics is a broad science which works to establish a model of commerce, with varying degrees of accuracy and utility.
Profits are not an inherently bad thing or dirty word. It just means that surplus value was created by a transaction, and workers can profit too
I feel like you are setting up strawmen positions for economic theory, using more economics to refute them, and then claiming economics is bunk.
The bad PR around this may ruin the brand value though, making the bags worth less retroactively.