Despite the bad news abounding in fashion, some brands managed to report significant growth last week. Don’t forget to subscribe to the Glossy Podcast for interviews with fashion industry leaders and Week in Review episodes, and the Glossy Beauty Podcast for interviews from the beauty industry. –Danny Parisi, sr. fashion reporter
Foot Locker, Birkenstock turn things around
While the fashion industry has recently seen its fair share of depressing stories — including the back-to-back bankruptcies and closures of beloved fashion brands — all is not lost.
This past week, several fashion brands reported earnings that were better than expected, and some brands revealed crucial turnarounds. Abercrombie & Fitch had previously expected to see 4% growth this year but has now revised that figure to 10%. The company has been on a tear over the last year, rapidly growing in popularity among younger consumers. Abercrombie & Fitch has been capitalizing on its hot streak with continued expansion, including a new bridal shop opened earlier this year. Its revenue has now risen for six consecutive quarters, surpassing $1 billion.
The same good news also applied to Abercrombie & Fitch Co.’s other brands: Hollister saw its sales increase 13%.
And even brands far from a hot streak showed that things are looking up. Foot Locker has been struggling over the last year, with its leadership delaying the company’s profitability plan an extra two years, to 2028. But in the quarter ending on May 4, Foot Locker managed to slow its revenue decline to just 1.8%, better than analyst expectations.
Foot Locker’s share price surged 32% after the earnings report, showing that investors have a sunnier outlook for the retailer’s future. Its newly embraced strategies include introducing new store formats and expanding partnerships with buzzy brands like On Running.
Birkenstock also had a good week. After it went public last year, the brand’s initial performance left much to be desired; its share price tanked due to an inflated valuation. But Birkenstock has slowly been turning things around. It initially expected revenues of $1.74 billion this year and is now forecasting $1.78 billion. The growth is thanks to strong full-price sales of its sandals, which make up more than a quarter of its revenue.
While brands like Mara Hoffman and the Vampire’s Wife are shutting down and others including Express, Dion Lee and Allbirds are approaching bankruptcy, fashion brand growth clearly remains possible in 2024.
