The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin uncovers one of the rare retail stocks investors can get excited about: True Religion Apparel. This company took a big haircut recently as many on the Street misinterpreted its earnings, but their folly is our opportunity. The company is moving exactly and deliberately in the direction they want. Add into the mix the fact that the company's got industry-leading margins and no debt, and you've got a recipe for success.