Fashion dated, make better dresses (7)
I believe the answer is:
couture
'fashion' is the definition.
(I've seen this before)
'dated make better dresses' is the wordplay.
'dated' becomes 'out' (I've seen this in another clue).
'make better' becomes 'cure' (as in making a patient better).
'dresses' means one lot of letters goes inside another (dress can mean cover).
'out' inserted within 'cure' is 'COUTURE'.
(Other definitions for couture that I've seen before include "High fashion design" , "High-fashion dressmaking" , "Design and manufacture of clothing" , "Dress designing" .)