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Takeaway: How about some new shirts and shorts with those new shoes?

Editor's note: This is a brief excerpt from Hedgeye retail sector research. Related tickers are Foot Locker (FL), Finish Line (FINL) and Dick's Sporting Goods (DKS)For more information on our product offerings click here

Running Specialty Stores Look to Apparel to Fuel Growth - jackrabbit

What Strategic Changes Are Running Stores Making?

Ed Griffin-Co-owner, Fleet Feet Sports, Syracuse, N.Y.
“'We are putting a ton of focus on apparel sales — and women’s in particular. We have hired apparel specialists...spread the footwear try-on areas throughout the store to better integrate apparel and accessories to create a more even flow of traffic.'"


Lee Silverman-President, JackRabbit Sports, New York
“'We’re putting a lot of effort into apparel. If we’re going to grow, it needs to be through apparel. We’re adjusting our store merchandising, replenishing, buying and sales techniques — there’s a lot to learn.'"

Running Specialty Stores Look to Apparel to Fuel Growth - chot

Hedgeye Takeaway: No surprise that running specialty stores are looking to apparel to help fuel the next leg of growth. The running category hasn't exactly been knocking the cover off the ball over the past 12 quarters. On the other hand, athletic apparel has shown no signs of cooling off and would help some of these smaller concepts diversify at higher margins. But, it won't be easy with Dick's Sporting Goods and Finish Line pushing in the same direction.