Fashion Labels for the Picking this Spring Break: Ralph Lauren Corp (RL), Ann Inc (ANN), Michael Kors Holdings Ltd (KORS)

Better grip for Michael Kors

Without delving into the metrics of their current stock price levels, Michael Kors appears to have the upper hand in delivering higher shareholder value moving forward. As shown by its recent robust sales growth, the company currently has a better handle on the fashion market than Ralph Lauren and Ann.

Notably, Michael Kors (founded 1981) and Ralph Lauren (founded 1967) are both established but mature brands. What they have been doing to keep a firm grip on the ever-shifting fashion market is to revitalize their presence among the high-end consumers. One way of achieving this is by introducing product category extensions.

Ralph Lauren has obviously failed in this department. This was demonstrated in the phase-out of its American Living and Rugby market entries. Significantly, Rugby also has an e-commerce website that was shut down this February along with the brand developed as the younger version of the Ralph Lauren line.

As for Ann, the vital missing link is presence in the menswear market. In the U.S. alone, this market was estimated at $10.7 billion in 2012, and projected to grow by 5.3% annually and eventually reach $139.2 billion by 2017.

Michael Kors, on the other hand, appears to be better at reinventing the wheel with a simple play on its original brand identity, coming up with a range of labels such as MICHAEL Michael Kors and KORS Michael Kors. It also helps tremendously that the founder of the company, the world famous designer Michael Kors, at 53, still personally leads its product design team.

The article Fashion Labels for the Picking this Spring Break originally appeared on Fool.com and is written by Arturo Cuevas.

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