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Designer Swim

This spring some of the main players in the fashion scene have also released swim lines. Some of the designers include, Marc by Marc Jacobs, Trina Turk, Diane von Furstenberg, Juicy Couture, Ralph Lauren Polo and Milly Cabana (see left). I particularly like the designs by Trina Turk (see right). She mixes fun colors and flattering designs, almost all of her pieces include gold links which would look good on tan skin!

A newcomer to the swim scene is Jessica Simpson, who is apparently dipping her toe in everything from shoes to jewelry. However her designs are bland and unoriginal. The fit however is very good, so I predict that it might sell well, because most women care more about fit than design when it comes to swim. The price range on the Jessica Simpson swimwear collection is also substantially lower than other designers ($40-$60).

A Response to Louis Vuitton Makes the Right Move

I agree with Jeanna's comments, Louis Vuitton's new designs don't remotely resemble Gucci. It's just their signature Damier canvas in a new palette, like the Damier Azur collection. It doesn't represent real innovation as much as the artificial construction of something new for Louis Vuitton to sell without putting much thought into design and much investment into production, something at which they have become astoundingly good. Time will tell if it achieves the same level of success as the Azur line.

In any case, where will LVMH and rival Gucci Group stand in the face of the changing economy? LVMH has a completely diversified portfolio covering both the high- and low-end, and while many luxury houses across the board are indeed starting to feel the crunch, both the Gucci Group and LVMH have the resources to stick it out. It's true that LVMH does 25.6% of their business is the ailing US market, but Gucci Group itself finds 19.3% of their market here as well, and still Gucci Group is expected to ride high on the continued success of their Bottega Veneta revival. Gucci Group shows that it's possible to survive as a luxury player in the US market, but it requires the right brand with the right product.

What exactly is the right product for LVMH? It's not entirely clear yet. I don't think that this supposedly "freshening up" of the Damier canvas is as remotely important to LVMH as the Richard Prince collaboration for Louis Vuitton, which has received multiple times the publicity thanks to an expensive ad campaign and flashy fashion shows highlighting the collection. LVMH is hoping for a home run along the lines of the Takashi Murakami collaboration that is still making money for them (see the Louis Vuitton boutique that opened in MOCA's Murakami retrospective). In terms of actual innovation and possible financial success, LVMH is placing its bets on that artist collaboration more than the safe bet that the new Damier canvas is sure to be. Both Gucci Group and LVMH are rapidly expanding in India and China with very promising results, instilling brand recognition in countries with low luxury-brand recognition with their logo-laden products and splashy publicity machines like the Richard Prince line. It is a necessary part of their strategies to get the new consumer wanting their products. Even if the US market proves difficult for LVMH, there's no doubt that LVMH will find new markets for their high-margin canvas goods. It's mostly a matter of how rapidly they can replace the failing sectors of the US and Japanese markets with new emerging ones. Any future success in the US and Japanese markets relies on their higher-profile collections, but they certainly don't have as much to worry about as any of the independent fashion houses that don't have the portfolios to stay afloat when the going gets tough. LVMH's success in the short-term evidently relies more on the Prince collaboration and the brand awareness it can build more than anything else right now. I'm anxious to see if that is indeed the "right" product to keep the conglomerate going.

Is Rock & Republic In Hot Water?

The buzz about Sundance this past week has been about the state of some popular contemporary denim brands. I'm not even remotely a fan of True Religion, one of the sponsors of a swag suite at the festival, but the brand has generally been successfully in selling their core product - upscale denim with new, on-trend variations every six months or so. The gossip around Sundance has been focused on how Rock & Republic has been faring. While their core product is also upscale, on-trend denim, they have been trying to expand into areas with limited success that has allegedly cut dramatically into their cash flow. With handbag prices reaching $950 and shoes reaching $395, and sunglasses like those pictured above for $350, Rock & Republic is pricing the brand much higher than others in the same contemporary market, including L.A.M.B. and Botkier, among others. The problem is that the brand expanded into apparel and accessories far too quickly. Instead of capitalizing on a growing brand cachet, Rock & Republic instead found themselves with numerous overpriced products with very little consumer awareness. Just as they were experimenting with several new back pocket logos, they also launched their handbag and footwear line. The new logos varied from a popular, lightning-like, angular variation of their classic double-Rs, to a more confusing tri-colored, triple-stitched version of the logo they introduced on their accessories. Too many variations of the brand's logo can prove confusing for the customer, working against the rather unsubtle, nearly garish effect of their bestselling, original double-Rs. While this gossip may just have been propagated especially strongly because of True Religion's dominance at Sundance, Rock & Republic's clearly uncontrolled brand expansion is certainly something to watch out for.

Coach Posts Earnings: Up 6.2% At End Of Trading

Coach (NYSE: COH), who we've been critical of as of late (and whose stock has fallen precipitously, at one point more than 50% since its high last April) has just reported earnings of 69 cents/share for the most recent quarter, beating analysts by a penny and sending Coach shares up 6.18%. The recent selloff could've been an overreaction, and this positive performance might've just been a rebound back to sanity - long term, we're still not bullish on this stock. No matter how far a stock has fallen, it doesn't become a value stock until a sound, independent analysis of the firm's value determines that the firm is selling at a discount because the market overreacted. If you don't see any value in a brand's future, it's difficult to gauge a future value, and obviously we wouldn't advise anybody to own shares in a firm in which they don't see a future.

Consider yourself warned, Coach bulls. You may have won today, but only the future will tell if Coach can regain its cachet, net margin, and attractiveness as an investment candidate.

Louis Vuitton Makes The Right Move

As we've said before, we're not advocates of brands that base their design solely on one repetitive logo (*cough* Coach). It just gets old. Why then that have we not been critical of Louis Vuitton, who's been whoring-out its logo all over its handbag line?

Well first, Louis Vuitton has some history to fall back on. They invented soft luggage, which makes their bags a perennial object of desire no matter what may be en vogue at the moment. This history is kind of like fashion insurance - there will always be some LV faithful who buy their product. Still, Louis Vuitton could use some freshening up for their bag line. They've just answered our prayers and delivered the perfect punch: grey and black.

This is just the kind of innovation and differentiation that sets Louis Vuitton apart from the rest. Right when you think their bread and butter designs are getting dated, they swoop in with something fresh, stately, and unique. Actually, from a distance the design resembles some Gucci pieces, but the color is unmistakably non-Gucci, so that puts our gripe to rest.

Click on over to Fresh Mess for the rest of the photos.

Fall 2008 Men's Reviews - Lanvin

Lanvin's current menswear designer, Lucas Ossendrijver, has come up with a fall collection that is sure to please both current Lanvin fans and those who have yet to discover the classic/cool line that stores like Barneys New York and MAC in San Francisco have been buying up. The look was charmingly carefree and clearly young-skewing, but it was also certainly appropriate for work. Ossendrijver offered a much better take on the recaptured youth concept that Thom Browne has often butchered. Foulards en soie made a keen appearance in place of ties, especially in the slick steel grey that feels so modern right now. Rich chocolate velvet didn't seem outdated, but felt pleasingly unexpected as a piped, double-breasted blazer. The blazer was surprisingly fresh paired with loosely-tailored navy trousers, an over-sized, winter-white blossom at the lapel, and a bow-tie worn with a crooked insouciance. Glossy shoes (a Lanvin signature) featured much thicker soles than in years past, a trend that more conceptual designers like Raf Simons to Miuccia Prada have also embraced. Even the most traditional of gentlemen will pine for the sleek jackets and coats, cut in a flattering silhouette, a perfect cross between boyishly boxy and European trim. My favorites from the collection are here, and the whole show can be found here.