Wardrobe malfunctions happen... Last week, we broke down the ecommerce-induced retail-pocalypse facing some department stores. Yesterday, 3 distinctive-ish fashion stocks fell enough to wipe out $2.9B in stock market value. Total faux pas:
- Throwback, logo-packed Abercrombie & Fitch: -26% — Worst drop since its 1996 IPO.
- Fancy jacket newbie Canada Goose: -31% — Worst loss ever.
- Luxury label conglomerate Capri Holdings (formerly known as Michael Kors): -10% — Worst in almost a year.
Where's the blame?... Not all on ecommerce. Each brand revealed it's struggling for completely different reasons:
- Abercrombie is closing 40 stores — including 3 big city flagships — because its style still hasn't recovered from your middle school days.
- Canada Goose's CEO claims spring weather is more "unpredictable" than ever, so it's harder to stack its stores with the right $1,000 parkas.
- And Capri's Michael Kors diluted its brand by selling in too many department stores... and doesn't want to make the same mistake with Versace (which it just bought).
2 types of retail stores are thriving... "Small" and "Experiential." Abercrombie is shutting extremely expensive flagships, while Mikey Kors pulls out of malls. But Target and Ikea's smaller "urban" stores are expanding — And startups Casper and Allbirds are adding "experiential" stores with nap-zones and human hamster wheels to try-on shoes. The new fashion playbook is clear.
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