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Return on Invested Capital So how well do these companies create value for investors? The return on invested capital can be used to determine this. COH's ROIC by far exceeds those of KORS, RL, and EL. However, KORS' ROIC is on an upward trend, while COH's ROIC may have stagnated above 50%. By comparison, this shows that there is still room for KORS' ROIC to grow (to COH's level). EL's ROIC is also increasing, albeit at a much slower pace than KORS. Using ROIC analysis, KORS, COH, and EL are attractive investments, while RL, although still generating positive returns, may underperform its peers. 5. Fashion Trends It is very important for these luxury retailers to set and follow the fashion trends each season. KORS has been successful in this regard. Michael Kors topped the ten most searched American fashion brands worldwide ranking put together by Digital Luxury Group and published in February 2013. Ralph Lauren came in third. Estee Lauder was the second most searched luxury brand in China in its industry, beat out by Chanel.
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