60-65% off is below wholesale and definitely hurting RL, employees buy merchandise that customers are willing to buy for more money. Giving employee discount willy nilly is counterproductive when you have thousands of employees who could abuse it.
If you had a business selling whatever and your employee undermined you by reselling your product for less to potential customers wouldn't you fire them immediately? There is definitely a sense of loyalty/principle involved here. You sell clothing for your boss not for yourself. At least if you resell RL, quit your affiliation with them. Most clothing stores monitor how employee discounts are used and have to be rung up by manager often times, not just RL.