Ralph Lauren Corp (RL), Michael Kors Holdings Ltd (KORS), Perry Ellis International, Inc. (PERY): 3 Fashion Brands to Love, 1 to Watch

Of note is that Calvin Klein earnings increased 5% to $73.8 million EBITDA as compared to the prior year’s fourth quarter amount of $70.1 million. However, the increases were partially offset by increased advertising expenses due, in large part, to the Calvin Klein Concept underwear commercial that aired during the Super Bowl. The company did not report a final net income figure for the division, or just how much the Super Bowl ad set them back. However, a little research shows that Super Bowl ads in 2013 cost roughly $3.8 million for a 30 second spot (which is what the company ran). The division’s earnings only increased $3.7 million EBITDA. Considering sales were up in North America following the ad, it will be interesting to see if the trend follows into the next quarter, specifically in men’s underpants, to see if the commercial was worth the expense. (So far, it does not appear so.)

Lauren’s stock price is up about 33% over the past 12 months, almost the same increase that it saw this last quarter in net income. Michael Kors Holdings Ltd (NYSE:KORS) stock is up more than 60% in the same period, again, almost the same amount of increase that it saw in net income. PVH is up nearly 40%. And although the Perry Ellis International, Inc. (NASDAQ:PERY) stock went on a wild ride this year, it ended up virtually flat.

Just like in fashion, there can be more than meets the eye with earnings. Dig deeper, and look for the anomalies. While three of these brands are strong investments right now, keep an eye on Perry Ellis International, Inc. (NASDAQ:PERY). There is nothing to run away from at Perry Ellis International, Inc. (NASDAQ:PERY), but there is nothing to run to either. Give these fashion trends a little bit longer to take hold and see which ones will last before committing too much to any one trend.

Erin McBride has no position in any stocks mentioned. The Motley Fool owns shares of Perry Ellis.

The article 3 Fashion Brands to Love, 1 to Watch originally appeared on Fool.com and is written by Erin McBride.

Erin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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