7 posts

Feed

Can luxury clothier 7 For All Mankind cross over?

A piece (subscription required) in The Wall Street Journal looks at luxury denim maker 7 For All Mankind's efforts to branch out into other product categories, including shoes and purses.

VF Corp. (NYSE: VFC) acquired 7 for $775 million in August, and knows that in order to make that bet pay off, 7 will have to sell more than just jeans. To that end, the company plans to open 100 retail stores over the next five years that will sell the full line of 7 products.

Just like when country singers try to do pop, these crossover attempts don't always work. Diesel has had tremendous success with shoes and other products, but Von Dutch has scuffled. The jury is still out on whether True Religion (NASDAQ: TRLG), 7's major rival in the luxury denim market, can have success in other categories.

True Religion and 7 are both very, very "cool" brands, and they seem likely to have at least some success in their expansion efforts. But there's another clothier looking to sell new products that I think is very likely to fail: Crocs (NASDAQ: CROX). As popular as the "shoes" are, the brand just isn't particularly well thought of, and has a very high probability of being a one-hit wonder. Hip consumers will likely be willing to given 7 shoes a try, but does anyone really want a Crocs jacket?

Symbol Lookup
IndexesChangePrice
DJIA+57.0312,858.26
NASDAQ+18.432,922.31
S&P 500+6.601,349.24

Last updated: February 13, 2012: 12:01 PM

Hot Stocks

General Electric

19.04+0.165(+0.87)

Alcoa

10.375+0.085(+0.83)

Apple Inc

499.92+6.50(+1.32)

Google Inc 'A'

613.00+7.09(+1.17)

Bank of America

8.275+0.205(+2.54)

Wal-Mart Stores

61.97+0.07(+0.11)

Exxon Mobil Corp

84.16+0.36(+0.43)

Ford

12.555+0.115(+0.92)

Citigroup

33.42+0.495(+1.50)

IBM

192.56+0.14(+0.07)

Yahoo

16.11-0.03(-0.19)

Starbucks

49.25+0.43(+0.88)

Microsoft

30.58+0.085(+0.28)

Home Depot

45.875+0.545(+1.20)

DailyFinance Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

Page Loaded in 1329152480066 ms.