Bronte Capital – Hibbett: Nike’s Core Retailer To A Core Demographic

  • Hibbett made a small acquisition of City Gear, a highly urban retailer of street clothing targeted at a mostly African American market.
  • Nike has several times called Hibbett out as an important partner.
  • The market thought Nike was going to kill Hibbett/City Gear. We thought that Nike was going to kill their competition.
  • We think that City Gear – and Hibbett – really is different.

The following segment was excerpted from this fund letter.

Hibbett, Inc. (NASDAQ:HIBB)

Hibbett is a retailer of street wear (especially sneakers) and a small volume of sporting goods (shoes with cleats, for instance). It is an unusual position for Bronte, and we