This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Searching for the Next Michael Kors at Fashion Week

At Ralph Lauren, it's not the high end that makes the money, but myriad ancillary lines that sell in department store chains, like Macy's Inc. (M).

Calvin Klein rakes in cash hocking fragrance, underwear and denim. It soon hopes to take advantage of the demand for accessories, too.

For now, accessories are the real stars of the fashion world, with clothes serving as a backdrop or as the supporting cast. A buyer can still carry the "it" bag of the moment whether he or she is short or tall, thick or thin. The products all come in one size, and can be easily identifiable through design and name brand, a billboard advertising one's affluence. The labels feed the narcissism of contemporary consumers encouraged by social media, according to Bud Konheim, CEO of fashion apparel company Nicole Miller.

And in a global marketplace, where regional dress can greatly vary between Europe, the Middle East and India, accessories are an easier sell, said Mortimer Singer, CEO of Marvin Traub Associates.

Finding the next fashion hit takes more than slapping a high price tag on a hunk of leather or bolt of fabric. And some companies just never make it.

According to one industry banker, many of Kering SA's (formerly PPR SA) investments in younger brands have not translated into good investments. The company remains largely reliant on flagship brands, like Gucci, while Alexander McQueen, for example, has potential with global recognition, but its sales remain small, the banker said. The company's latest investment is in Altuzarra, helmed by Joseph Altuzarra, one of the hot young emerging designers of his generation.

Singer pointed out that luxury conglomerates' need for growth is driving investment in increasingly smaller brands.

Beyond the giants, some investors may believe -- erroneously -- that fashion is easy. Prominent examples of new designers quickly becoming superstars can create the impression that money and slick marketing will guarantee bright lights and glitzy parties. The prestige of investing in a hot luxury brand exerts a magnetic pull. For every success, however, there is a fashion graveyard filled with hundreds of labels that never find a market.
3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
COH $31.56 -0.66%
KORS $42.87 -0.35%
PVH $92.23 1.00%
RL $124.80 0.48%
AAPL $117.29 -0.85%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs