This was originally sent to subscribers of TheStreet.com Breakout Stocks on March 14 at 2:55 p.m. EST. For more information on this newsletter, click here.With retail chains like the Gap (GPS:NYSE) and the Limited (LTD:NYSE) falling out of favor with consumers, a new generation of apparel sellers is dramatically expanding their store bases and taking market share from these giants. With this trend in mind, shares of Urban Outfitters (URBN:Nasdaq) look set to outperform over the long term. We already have two retailers in the model portfolio, but otherwise would be adding a small position in Urban Outfitters and then doubling it on a 10% pullback. The bears have been quite vocal on the retail sector, insisting that high energy prices and a slowing housing market would hurt consumers' spending power. While this may be true, our newsletter uncovers the companies shaking up markets and taking share, rather than focusing on the overall market size. Urban Outfitters is just such a company, and we believe its slice of the retail pie will keep growing. Urban Outfitters operates 175 stores in the U.S., U.K. and Canada under two primary storefront names -- the Urban Outfitters flagship brand and Anthropologie, which focuses exclusively on women's apparel and accessories. In addition, Urban's wholesale brand, Free People, is sold through department stores, and the company began opening stores under the Free People brand name in November 2002. The company also sells its wares through the Internet and catalogs. Urban Outfitters distinguishes itself from other retailers like the Gap and Abercrombie & Fitch (ANF:NYSE) by focusing on funkier, edgier and trendier urban styles. Also, the company is free to carry whatever new styles are popular, no matter what the brand. For example, Urban Outfitters sells hot items like True Religion (TRLG:Nasdaq) jeans and Puma sneakers that can't be found in stores like the Gap. Such vertically-oriented chains must carry products that bear the company name, so they can only produce replicas of the hot stuff.