In yet another sign that mediocre apparel brands just can't cut it in this new environment, our sources suggest that Russell Athletic (owned by Berkshire/Hathaway) inked a deal to sell Sam's Club (WMT). While not a material event for either parent company, this does have implications for Russell's existing channels of distribution, and the brands with whom they compete.
Though not known to most Wall Street types as a performance brand of choice, we'd note that Russell has 5% market share of apparel in the sporting goods channel. This compares to Champion at 2%, 5% for The North Face, and 16% and 14% for Under Armour and Nike, respectively.
This smells a bit like when Liz Claiborne went down market to JC Penney with its 'Liz & Co' brand and then Macy's cut floorspace for the core Liz Brand by a third. Not a good trade.
We could see some brand rotation here, and suspect that Hanesbrands (owner of Champion) is licking its chops.
Though not known to most Wall Street types as a performance brand of choice, we'd note that Russell has 5% market share of apparel in the sporting goods channel. This compares to Champion at 2%, 5% for The North Face, and 16% and 14% for Under Armour and Nike, respectively.
This smells a bit like when Liz Claiborne went down market to JC Penney with its 'Liz & Co' brand and then Macy's cut floorspace for the core Liz Brand by a third. Not a good trade.
We could see some brand rotation here, and suspect that Hanesbrands (owner of Champion) is licking its chops.
