Seeking Alpha
Profile| Send Message|
( followers)  

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:

Source: Re-Visiting the Denim Debate (TRLG)