“What makes an ideal vendor? A company with significant international exposure and brand recognition, which gives the company pricing power. Cramer thinks Nike (NKE) and Ralph Lauren (RL) with 50% and 30% international exposure respectively, are the “gold standard” among vendors.”
The above quote on Seeking Alpha from Cramer’s Mad Money – The Cheapest Apparel Play You’ve Never Heard Of (11/30/10), gives a Wall Street traders’ outlook on how a store should choose a vendor.
The report goes on to say, “Cramer would not buy … Liz Claiborne (LIZ) which “represents everything that can go wrong with an apparel company”: heavy debt, a suffering brand, and a 50% year over year increase in inventory going into the holiday season.”
Another article, Lower Margins Pose Threat to Jones Apparel Group, is a great read for those trying to thoroughly understand this apparel business in all of its complexity.
Read more over at Seeking Alpha. Just type the word apparel (or other keyword) into the search window and see what you can learn.