President Barack Obama and first lady Michelle O. participated in a Halloween trick-or-treat on the steps of the North Portico of the White House in Washington, October 31, 2010.
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Happy Halloween with the Obama's at the White House...
President Barack Obama and first lady Michelle O. participated in a Halloween trick-or-treat on the steps of the North Portico of the White House in Washington, October 31, 2010.
Michelle O's West Coast Invasion...
Dr. Jill Biden, Sen. Barbara Boxer, D-Calif., and First Lady Michelle Obama acknowledged supporters during a fundraiser in Los Angeles, Tuesday, Oct. 26, 2010.
First Lady Michelle Obama (wearing a Jason Wu dress and her fave Alaia belt) and California First Lady Maria Shriver take the stage as they participated in the morning session of The Women's Conference 2010 in Long Beach, California October 26, 2010.
Michelle O. spoke at a Democratic National Convention fundraiser (wearing Thakoon) in San Francisco, California.
[photos via AP Photo, Reuters and Getty Images]
Michelle O's Wardrobe Worth $2.7 Billion?
via NYMag: In their latest Business Review, Harvard, that fashion-obsessed place a quick private plane ride north of us, had an analyst assess the monetary value Michelle Obama has on fashion labels she wears publicly. Apparently when Michelle wears something, that company's stock spikes upward. If it's not the label seeing a gain, stores that carry the labels, like Saks, stand to benefit. From November 2008 to December 2009, David Yermack counted that Michelle made 189 public appearances, and wore items by or sold at 29 publicly traded companies, including J.Crew, the Gap, Dillard's, and DSW. The total value generated by those appearances for those companies was $2.7 billion, while Yermack estimates the total value of a single public appearance at $14 million.
It seems there can be no bad time for Michelle Obama to be seen wearing a label's clothing, and the best places for her to do it are probably overseas. When Michelle went to Europe last year, the companies affiliated with her wardrobe enjoyed an average gain of 16.3 percent — meanwhile, the S&P 500's average gain was only 6.1 percent. Michelle also might hurt the companies she doesn't wear: Yermack analyzed 27 apparel competitors not worn by the FLOTUS and found that they lost 0.4 percent in value. Also, he says that Michelle's returns are not affected by the president's approval rating, and that companies like Saks that sell labels she wears frequently have enjoyed long-term gains. So when the Times and so many others wondered if Michelle Obama could save the fashion industry when she got to the White House, it seems that yes, she can, but she's also slightly hurting part of it.
But why does Michelle have this effect? Plenty of famous people wear things without producing such dramatic line graphs, after all.
How do the returns compare with those generated by other brand endorsers?
Few models or celebrities make the kind of impact on company stock price that Michelle Obama does. The First Lady’s astonishing influence may be tied to the fact that consumers know she’s not paid to wear what she does, whereas they may subconsciously discount models’ endorsements as inherently corrupt.
Have all First Ladies had this effect? No. Even fashion icons such as France’s Carla Bruni-Sarkozy do not. Bruni-Sarkozy, like many First Ladies, dresses mainly in one brand: Dior. Obama mixes couture with items anyone can buy at a mall—she famously wore J. Crew gloves while holding the Lincoln Bible at the Inauguration. Consumers flock to the stores, and even if they don’t buy what she wears, they often leave with something else.
First Lady Michelle O. Seen Out and On the Move...
First Lady Michelle Obama held a pumpkin while harvesting the White House Kitchen Garden October 20, 2010 on the South Lawn of the White House in Washington, DC.
First lady Michelle O. (wearing Calvin Klein) clapped during the presentation of the 2010 National Arts and Humanities Youth Program Awards in the East Room of the White House in Washington, October 20, 2010.
First Lady Michelle O. (wearing Donna Karan) applauded with actress Sarah Jessica Parker, center, and Jill Biden after speaking at a Democratic National Committee fundraiser Monday Oct. 18, 2010 in New York.
President Barack Obama and First Lady Michelle Obama waved after speaking during a rally for the Democratic National Committee at Ohio State University in Columbus, Ohio, October 17, 2010.
President Obama and first lady Michelle Obama arrived on stage to campaign for Ohio Governor Ted Strickland at a midterm election campaign rally at Ohio State University in Columbus, Ohio, October 17, 2010.
awww...
[photos via Getty Images, Reuters and AP Photo]
Michelle O's Passion for the Arts... [VIDEO]
Michelle O. Hearts Jason Wu...
President Barack Obama and First Lady Michelle Obama (wearing Jason Wu last seen here) walked off stage after delivering remarks during an Diplomatic Corps Reception on October 5, 2010 in Washington, D.C. Obama welcomed foreign diplomats during a reception, and spoke on various topics from global economic growth to peace in the Middle East.
First Lady Michelle Obama listens as U.S. President Barack Obama delivered remarks.
[photos via Getty Images]
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