Quotes of the Day

Roberto Cavalli isn't the only fashion company doing well in a shaky economy. Coach, Burberry, Christian Dior, Dolce & Gabbana, Zara and Yves Saint Laurent are all selling well. So what's the magic formula for getting customers in the door in dire times?

There isn't one. New styles for the classic American bag fueled sales growth of 20% between 2001 and 2002 for Coach, and the company is promising logo bags and hats to keep customers (and Wall Street) happy in 2003. Gucci Group's Yves Saint Laurent is succeeding thanks to a new designer — Tom Ford — a host of new stores, and a new brand image.

The brand doesn't expect to be profitable until 2005, but sales climbed 44% in 2002 to 1146 million. Christian Dior says it has its accessories — specifically, the 125 different models of its popular saddle bag — to thank for its 41% sales gain last year. Analysts think Burberry stock is a bargain because the brand is less developed than its peers.

"Four years ago everyone was following a formula," says J.P. Morgan's luxury goods analyst Sagra de Rosen. "Now all successful companies have remarkably different business models. There's no one rule."

• LAUREN GOLDSTEIN
• Some fashion houses buck the trend