![]()
- 'Mortgage Deal from Hell' Hurts Sound Borrowers: Bove
- Fidelity: 401(k) Balances Little Changed Over 2011
- Are Young American Workers a 'Lost Generation'?
- Greek Political Leaders Agree On Austerity Reforms
- Robo-Deal Is All About Lowering Mortgage Principal
- Fed Fines Banks $766 Million Over Mortgage Practices
- Options Trader Scores Big on Diamond Foods Selloff
- 12 Unique Dating Sites
- Zuckerberg Takes Control, You Get $100
- Robo-Deal Is All About Lowering Mortgage Principal
- Groupon Needs More Disclosure: Analyst
- CEO to CEO: Taking a Job at a Startup vs. a Public Company
- Farr: Money, Jobs and Politics — We're Still in a State of Risk
- PepsiCo CEO: We’re Not Splitting the Company
- Can Ford Make a Smooth Transition in Management?
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- China’s Steelmakers Set for Turnaround: Analyst
- Bulls Bet Silicon Motion Will Bounce
MOST SHARED
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- Robo-Deal Is All About Lowering Mortgage Principal
- Fidelity: 401(k) Balances Little Changed Over 2011
- Top Fashion Stocks for 2012
- Options Trader Scores Big on Diamond Foods Selloff
- iPad 3, iTV and iPhone 5 Should Drive Apple to $665: Money Pros
- Chesapeake Spurs Nat Gas Rally
- FBI Investigated Steve Jobs Drug Use
- Can Anybody Be an Entrepreneur?
- 'Mortgage Deal from Hell' Hurts Responsible Borrowers: Bove
MOST POPULAR
HOT ON FACEBOOK
Fashion Has A Brand New Bag
![]() |
Jimmy Choo - Tilly - Canvas sandal with studs |
And with demand for high-end shoes and handbags growing, designers and investors are finding a flattering fit in luxury accessories, evident in the runway looks at New York Fashion Week and the recent sale of Jimmy Choo.
The $364 million acquisition of Jimmy Choo by a private equity group led by TowerBrook Capital is just the latest in a series of deals and investments in the profitable luxury market, says Marshal Cohen, chief industry analyst for market research firm NPD Group.
![]() |
Jimmy Choo - Camel leather handbag with metal plaque |
Luxury is “one of the areas that has proven to be almost consumer-proof, recession-proof, financial-challenge proof and continues to be a good investment and good opportunity,” Cohen says. “Year-after year, and five years in a row now, the luxury segment continues to rise to the top.”
![]() |
Marc Jacobs - Rufus Leather |
Fashion insiders say growth in the accessories market – which includes footwear, handbags and jewelry – has outpaced that of the apparel market in the last couple years. NPD is launching a new service to track the segment's tremendous growth. Sales of men’s and women’s fashion footwear alone rose 6.4% to $29.5 billion in 2006, while apparel sales rose 4.4% to $157 billion, according to NPD.
Catching Up With Coach
Just look at Coach, which has been riding high on double-digit sales growth each holiday quarter since 2001. The retailer recently reported a 31% surge in fiscal second-quarter profit, fueled by a 26% jump in same-store sales. The stock has increased eight-fold in the past five years and is up 61% in the last six months alone.
![]()

The company's success has motivated other retailers, including Kenneth Cole Productions and J. Crew Group, to boost their handbag offerings.
![]() |
Coach - Soho Signature Flap |
“I want to expand Tumi in the women's fashion accessories market,” he said. “That’s where the growth is.”
And for designers, that’s where the money is.
“Designers sell more fragrance than clothing and more handbags than dresses. That’s just the way it is,” said Fern Mallis, vice president of IMG Fashion and veteran organizer of New York Fashion Week.
Looking Smart, Smart Money
But why the willingness to shell out hundreds of dollars on a handbag or a pair of shoes?
“Accessories is the investment part of the business,” said Cohen, referring to the timelessness and style flexibility of shoes and handbags. “It’s easier to rotate your wardrobe and create disposable fashion and pair it with great accessories."
Cohen was among the 36,000 people at the fast-growing World Shoe Association’s trade show, which showcased more than 350 luxury footwear and accessories designers in Las Vegas Feb. 1-4.
![]() |
Gwen Stefani shoe |
And celebrities are looking to cash in on consumers’ appetite for accessories. Gwen Stefani’s L.A.M.B. label and Beyonce’s House of Deron are extending their lines to include shoes, which were previewed at the show. Victoria Beckham, wife of soccer player David Beckham, recently signed an $9.8 million deal to design bags and shoes.
“People can’t turn over an entire wardrobe based on changing styles every season and every year, but they can update looks via accessories,” Stone said. “You can buy a couple new things and look like you’re in the latest style.”
“There’s no difference between a $30 and $300 pair of jeans," says Cohen, "but everyone can tell cheap shoes.”
And what a fashion faux pax that would be.
- Many have called to abolish the Federal Reserve. But what would happen if it was dissolved for good?
- New options and disclosures on fees should give workers more control over their retirement savings.
- A management shakeup at the automaker should be a lot smoother this time, says Phil LeBeau.
- The U.S. economy cannot have a sustained recovery until our entrepreneurial dynamism returns, says a guest blogger.
- A die-hard Steelers fan spent a week with wide receiver Antonio Brown- and it was all due to tweeting.
- Where are the best city locations for singles to take the online dating plunge? We’ve got the list right here.















