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Entries in Harvard Business Review (1)

Tuesday
Nov092010

First Lady's Clothing Picks: Big Gains for Designers, Department Stores

Photo Courtesy - ABC News(WASHINGTON) -- First lady Michelle Obama is hailed as one of the world's best-dressed women. From couture creations to off-the-rack ensembles, the clothes she wears fly off the shelves.

The designers whose creations are picked by the first lady not only experience a surge in popularity, but, according to the results of a study published in the October issue of the Harvard Business Review, their stocks can get a significant boost.

The study's author, David Yermack, professor of finance and business at New York University's Leonard N. Stern School of Business, performed a year-long analysis of the economic impact of Obama's apparel selections.

He found that her choices had a major influence on clothing markets.

Obama's Choices Benefit Seventh Avenue and Wall Street

"Each single appearance of hers could move a stock price by $14 million," Yermack told "Good Morning America."

According to Yermack's results, Obama made 189 public appearances between November 2008 and December 2009. During that time, she wore items from 29 publicly traded companies, including J.Crew, the Gap, Saks Fifth Avenue and Target.

Those companies raked in an estimated $2.7 billion as a result of Obama's donning their apparel, Yermack calculated.

J.Crew has been one of the biggest beneficiaries of the first lady's sartorial selections. Obama has sported outfits from the popular mall chain on several high-profile occasions.

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