- "Skechers USA Inc...announced today it will sponsor California Chrome’s run at Belmont Stakes in New York on June 7."
- "As part of the sponsorship, Skechers’ logo will appear on California Chrome’s blanket, barn and racing gear, while owners Perry Martin and Steve Coburn, and trainer Art Sherman will wear team jackets, caps and apparel from the athletic brand."
- “'We just watched Meb Keflezighi win the Boston Marathon wearing Skechers Performance shoes in April,' said Coburn, 'so we know Skechers has a good track record when it comes to picking winners in high-profile races.'”
TAKEAWAY FROM HEDGEYE’S BRIAN MCGOUGH:
We've never seen a brand go in so many directions at once. Performance, toys, horse racing, and NBA ownership. Whenever this happens, there's tremendous operating leverage until the company realizes it has underinvested. Then margins collapse and the company must refocus on its core initiatives.
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Editor's Note: This is a complimentary research excerpt from Hedgeye Retail sector head Brian McGough. Follow Brian on Twitter @HedgeyeRetail.