In a way, these two elements both represent different sides of the same coin. While the "naked" component of the campaign relies on stereotypes of the White ideal of feminine beauty, the "drag" component relies of stereotypes of trans female/trans feminine people as inherently unattractive. Hence PETA's use of drag queens to mock Star Jones, Anna Wintour, and Joan Rivers for wearing fur. That is, the subtext of PETA campaign is to suggest that Jones, Wintour, and Rivers are ridiculous and ugly for wearing fur by connecting with viewers' transphobic belief that trans feminine expression is ridiculous and ugly.
The PETA webpage promoting activist participation in this element of its campaign combines an anti-trans caricature with a sexist, racist caricature in its title "Draggin' 'Ladies' Prove That There's Nothing Glamorous About Fur," which is a play on the anti-Asian-based epithet "dragon lady." The webpage reads:
Want to help educate people about the cruelty of the fur industry? Put on some pumps and show the world what a fashion faux pas fur really is! Whether you've got a flair for the flamboyant or you're just an up-for-anything activist, staging a "Fur Is a Drag" protest is a terrific way to show people just how ridiculous fur really looks. You can enter a contingent of cross-dressers in a local parade or stage a drag of a demonstration outside a fur retailer. We have everything that you'll need to make your event a raving success. You just need to supply a time, a location—and a few daring drag queens! And remember, a few hours in heels is nothing compared to what animals killed for fur go through, right, guys?
Clearly PETA believes that trans people are "ridiculous." While feminists have long been speaking out against sexism in PETA's use of naked women in its campaigns, the silence regarding its devaluing of trans female/trans feminine people is deafening. This might be related to the virulent transphobia by some feminists (e.g., Carol J. Adams and other Feminists for Animals Rights) who criticize PETA's traditional sexism.
Much like it uses transphobia, PETA started exploiting anti-homeless hate in 1998 by giving fur coats covered in red paint to homeless women. PETA believes that both trans people and homeless people are disgusting and that if people see crossdressers or homeless people wearing fur then they'll think fur is disgusting by association.