In every industry there is opportunity. That is a wonderful saying and sometimes it is hard to see, but in the luxury market it is often easier to see. The luxury market has high margins and the companies ensure that there are few sales. If a retail company carries the brands and goes bankrupt, there are not sales on the luxury brands. The luxury brands is also dominated by high advertising budgets for people to aspire to wear the brands and be seen wearing the brands, while others know what the brand means. It takes a great deal of luck, skill and consistency to have a luxury brand.

In an article by Elisa Anzolin of Reuters, two of the biggest names in Italian fashion are uniting and expecting higher revenues, the brands are Prada and Versace which is owned by Capri Holdings.

Versace is known for its bold, baroque-style prints while Prada is known for its minimalist styles. This tends to mean there is little overlap in terms of creativity and customer base.

Capri Holdings reason for selling Versace to focus on turning around Michael Kors brand. Capri Holdings also has brands such as Coach and Kate Spade.

Prada CEO Andrea Guerra told analysts, the acquisition is a long-term project for Prada and aimed at expanding revenues rather than cost savings.

Linking to dividend paying stocks, in all industries there are opportunities for companies to grow, to keep moving forward because there are many alternatives in the marketplace and they all have shoots to pop up, whether they take root and grow stalks is a different equation, but it is possible. When you own dividend paying stocks, the dividends can be reinvested in where you see opportunities and having patience over the long-term.

There are more questions than answers, till the next time – to raising questions.