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.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of lululemon athletica. Motley Fool newsletter services recommend Lululemon and True Religion Apparel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.