Article Excerpt:
TWST: Give us an idea of what you covering in this space.Ms. Gallacher: Within the footwear and apparel segment, my coverage spans from companies like NIKE (NKE), Columbia Sportswear (COLM), Quiksilver (ZQK), Volcom (VLCM) and K2 (KTO).
TWST: What are the criteria for a company in your universe?
Ms. Gallacher: I try to look at market opportunities where a company has
growth potential within the segment. There has been a lot of
consolidation with these sporting goods manufacturers. We have seen it
on the apparel side as well as on the footwear side.
TWST: What's driven this consolidation?
Ms. Gallacher: I think you have to look at the sporting goods market as
a whole, from the manufacturers to the retailers. There has been
consolidation on the manufacturing side and on the retail side. This is
one segment within the consumer space that just had not consolidated,
and if you look at the consumer market as a whole, there are very few of
these segments left. This consolidation, from both the manufacturing and
retailing perspective, leads to advantages in economies of scale and
branding and distribution efficiencies.
Tickers included in this excerpt: ADDDY, COLM, DKS, KTO, NKE, TBL, TSA, VLCM, ZQK
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