Good Fashion Sense

One of the best-performing industry groups of last 10 years has been retail apparel stores. I have to admit that this is one phenomenon I never saw coming. It’s also interesting to note that oftentimes, great investments are necessarily from great inventions. Sometimes, just building a better mousetrap is all you need.
Just look at the long-term charts of stocks like Abercrombie & Fitch (ANF), Chico’s FAS (CHS), Christopher & Banks (CBK), American Eagle Outfitters (AEOS) and Urban Outfitters (URBN). They’re all been big winners. Plus, there are some promising up-and-comers like True Logic (TRLG) and Aeropostale (ARO).
So who’s next? Make way for Steve and Barry’s:

Almost everything at Steve & Barry’s — jeans, jackets, hats, athletic pants, cargo shorts, hooded sweat shirts — costs $10 or less, an obvious delight for holiday shoppers. But retailers across the realm, from mass-merchant discounters to higher-end clothiers, are also starting to take notice, retail experts say.
In the garment industry, Steve & Barry’s fits into an emerging category of “extreme-value retailers who go to off-the-beaten-track marketplaces like Madagascar where they can really get tremendous deals,” said Lois Huff of Retail Forward, a consulting firm in Columbus, Ohio.
They cater to tightfisted customers “looking for something that’s ‘good enough’ — decent quality at a great price,” Huff said. “There’s a huge shift in many consumers toward that kind of a mind-set.”
“When somebody discovers a Steve & Barry’s they feel like they’ve found a store that understands and embraces their needs,” echoed Marshal Cohen, chief analyst at market research firm NPD Group Inc. “So what if the color is a slightly different shade of blue! At this price I can buy five of them!”

They’re not public yet, but this is one to watch.

Posted by on December 26th, 2005 at 6:23 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.