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Beacon Equity Research Featured Company: Inca Designs, Inc. (IDGI.PK)

Inca Designs, Inc. (IDGI.PK) is a New York based company that designs, sources, and sells designer swimwear and resort wear under the brand names Inca, Incagirl, Incabad and Inca Junior. Inca’s designs can be found at several upscale department and specialty stores in the U.S., including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Barneys New York, and throughout the world in such locales as South America, Europe, Asia and the Middle East.

Inca, which began as a clothing designer, still primarily designs and retails high end swimsuits and accessories at affordable prices. The company has expanded its clothing line to include child and adolescent fashions, and also offers a line of accessories for the home. The children’s line, Inca Junior, was launched in late 2007 and includes lightweight shirts, tunics, shorts, and lounge pants for boys. The Inca Girl line is designed for girls ranging from 3 to 11 years old. The home accessories include silk pillows, embroidered towels, and table cloths. The women’s swimwear and resort wear lines are still the leading sellers.

Reports by NDP Group, a New York research firm, show that two-piece swimsuit sales increased in 2006 by 20.5%, making it a $12.9 billion market. The fashion swimwear market is projected to grow to at least $13.5 billion. Since the Inca brand is considered (and marketed) at the high-end of the fashion market, yet priced below the typical high-end price, Inca is expected to grow in sales and popularity. The Inca brand appeals to a broader demographic due to its fashion status and affordability.

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