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In the character page, you can easily toggle between showing your regular armor and your fashion armor. But I'm wondering - if you run around in your fashion armor... do you still have the stats/bonuses/effects of your armor?
All my characters are low level, and doing the first few quests seem to be equally difficult either way. I'm not sure if that just means my equipment sucks (I'm sure it does at level 4) or if the "plain clothes" are just for show, but the armor is still in effect.