Could we possibly be seeing the beginning of a decline in the viability of cheap e-commerce fashion? We might, judging by Shein’s lackluster 2024 earnings.  Consumers are still buying, but like all e-commerce players, the costs in this hyper competitive market wipe out profits.  

Meanwhile, in Q4 sports brands have rebounded from the weak earnings most saw earlier in 2024.  Brands reported increases in both sales and profits, with high end activewear, like Arc’teryx seeing a surge in sales and profits.  Even Foot Locker managed to show positive indicators that are getting back on track now.  While sales are still down from a year ago, same-store sales grew and operating income reversed last year’s loss.

Other than sports brands, Q4 was a mixed bag. Could Gap finally be back on solid footing? The brand turned an important corner with operating income up 21% in the quarter and doubling for the full year.  

After a long run of outperforming the market, discounters and off-price had a disappointing Q4 with decreasing sales everyone except Costco.

Department stores continue to disappoint with another quarter of weak sales, along with Hudson’s Bay filing for bankruptcy protection.