Bill McVail, of Turner Investment Partners, sees good growth prospects in True Religion, a high-end apparel company that is starting to open up its own retail stores.
“The reason we like True Religion is it’s following the same playbook that was really started by Coach and then followed up by companies like Guess. These are traditionally companies that have been wholesale.”
By opening up its own retail stores, McVail said True Religion can control its own distribution and build other verticals within the store.
“You’re not beholden to your distributor about how much they’re going to buy and do they have too much inventory.”
McVail also likes clothing company Guess and video game retailer GameStop .
“Gamestop has both great new games coming, and they make money on the used games…it’s a very recession resistant model that will continue to do extremely well in 2008.”