$EXPR really ran up despite continues bad results/guidance. Earnings tomorrow.
The product is bad and expensive. That style of fashion has a headwind. Cash flows steadily dropping. Leases are the hidden liability.
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Generally (excluding Ralph Lauren collared shirts), what will sell season to season is highly unpredictable, so the fast fashion companies make smaller runs of everything until they see a winner. Early high sales are a consistent indicator of season-long high sales, so after
Seeing a positive signal they bet big. They’ve set their supply chain to be as fast possible. In some cases they’ll buy huge amounts of fabric in advance and just make different designs with it until one hits. They don’t make orders with factories, they instead book production
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Thanks for the input. Despite not being into stock investing, you've got really great insights.
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Thanks. This overlaps quite a bit with an area that im supposed to know (retail and sewing) so it’s easy to sound wise/smart on the topic. Talk to me about something else you’ll quickly take back your statement...maybe haha
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Time. Again, this allows them to be flexible in response to demand. Zara will do some manufacturing (in particular what can be automated) in Spain for speed. Then they sell at a low price, which gives great leverage with all their volume oriented suppliers because of volume.
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One of the biggest costs in the industry is the markdown from creating too many of a poor seller (or not having enough of a good seller). The fast fashion cos have greatly motivated this problem. Contrast to Macy’s, which will in March 2020 decide how many pink polka dot dresses
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