The Devil Wears Prada 2: A ‘Miranda Portfolio’ of Luxury Stocks Delivers 629% Returns

Cerulean blue was never just a colour, but something bigger than fashion. It was about how decisions made at the top of a market eventually shape what everyone else buys. Ahead of the release of The Devil Wears Prada 2, eToro applied that same idea to investing.

eToro, the trading and investing platform assembled a hypothetical 'Miranda portfolio' of heritage luxury stocks. The portfolio would have returned 629% since the original film hit screens in 2006, outperforming the S&P 500 (442%) and the S&P Global Luxury Index (297%). The data highlights how Miranda Priestly-style selectivity has historically driven outperformance in the luxury sector.

Performance of “Miranda’s Portfolio” of Luxury Heritage Brands. Price returns are in USD, not annualized. 

The portfolio includes Hermès, Richemont, L'Oréal, Kering, Burberry, Christian Dior and Ralph Lauren. Hermès was the standout performer over 20 years, returning 2206%. Christian Dior returned 467%, Ralph Lauren 525%, Richemont 619% and L’Oréal 344%. At the other end of the scale, Burberry returned 92% and Kering 149%, reinforcing that selectivity remains pivotal.

"If Miranda had built a portfolio in 2006, she would not have chased novelty or short-term momentum. She would have prioritised heritage, scarcity and brand power that does not depend on the moment. That instinct maps closely to what has driven long term outperformance in luxury equities,” commented Lale Akoner, Global Market Strategist at eToro. “The strongest names in the sector operate more like compounders than cyclical plays. They tend to share a very specific set of traits: protected pricing, limited supply and the confidence not to chase the market fads. Hermès has rarely discounted. Ralph Lauren spent years being considered unfashionable by the fashion industry. L'Oréal kept selling the same products through every cycle. These may not be exciting investment stories in the short term, but they have been very resilient over the long run."

The shorter-term picture is more mixed, highlighting the sector's sensitivity to macro conditions. Over the past 10 years, the basket returned 194%, compared with 238% for the S&P 500. Over five years, the basket is up 33%, while it has returned just 11% over three years and 28% over one year.  

Lale Akoner added: “Luxury is often treated as a single trade, but the reality is far more selective. The performance dispersion, i.e. the gap between the best and worst performers, is substantial and that reflects differences in brand positioning, execution, and exposure to aspirational versus ultra high-end demand. Over shorter timeframes, however, the sector behaves much more like a cyclical trade. Demand is sensitive to global liquidity, consumer confidence, and tourism flows, particularly in key markets such as the US and China. That explains why the recent performance has been volatile, despite the strength of underlying brands.“

Over the long run, the strongest heritage brands have demonstrated an ability to protect pricing, preserve exclusivity and defend margins across cycles. For consumers, these names are associated with handbags, lipstick, trench coats and polo shirts. For investors, they have delivered sustained compounding, provided selection was disciplined. As The Devil Wears Prada returns, the investment lesson is simple. Glamour may grab attention, but durability is what delivers returns. 

*Share price data taken at market close 22/04/2026. Index performance calculated in USD terms. Data from Bloomberg. Past performance is not an indication of future results