British model turned designer, Melissa Odabash, has a knack for color and cut. She specializes in swimwear, but my favorite part of her collection are her cover ups.
First, check out the Odabash site. I'm definitely ordering the super-sweet Avalon cover up for my girl. A gorgeous sea-green, this diaphanous cover up is light and breezy--my girl will live in it at the beach! The major problem--no returns to the UK Internet business. Since this is the policy, you may want to size up. That way you know the cover-up will fit next season. Trust me: These timeless designs won't be "out" for summer 2008.
Scoop in NYC also carries a good selection in their stores, but the online shopping is spotty. I only found one terry cover-up. Finally, Forest & Zoe has the Melissa Obadash hot pink Alaia cover up ($70) that's a good bet--but hurry they'll only 4T and 6T remaining.