Re-Visiting the Denim Debate (TRLG)

In his recent analysis of True Religion Apparel (ticker: TRLG) on The Retail Stock Blog, Andy So wrote that the premium denim market is declining. A heated discussion among readers ensued.

Last Friday's Women's Wear Daily reported that private equity firm Berkshire Partners now holds a 66% majority ownership in premium denim company Citizens of Humanity (a TRLG competitor). Why is this significant? From Women's Wear Daily:

Boston-based Berkshire sees continued growth in the high-end denim business even as some on Wall Street forecast that it is topping out. "We view the premium denim segment as $1 billion out of the $12 billion denim market, with the upscale denim business growing very rapidly....There are currently a number of players in the premium denim space and there will likely be some consolidation going forward," said Larry Hamelsky, managing director of Berkshire Partners...

Comment: Is Andy So mistaken?

TRLG 1-Yr Price Performance:

Comments

[Jim Bob:]

Now you can find out the scoop on True Religion Jeans founder at JeffreyLubell.com.
The domain name is being sold the money will be used to short the stock (TRLG) as the company pumps and dumps.

2006 Aug 05 09:52 PM