Thoughts on the Market: October Edition
Do your holiday shopping early unless you’re buying on Amazon.
The world’s supply chains are plugged up. This isn’t new. Nike warned in March 2021 that container shortages and port congestion were delaying shipments of goods, and the situation has only deteriorated since then. Fortunately, brands like Nike and Aritzia that sell DTC (direct-to-consumer) can offset these challenges with increased sell-through at full prices given the scarcity of product. One advantage of online stores is their ability to show the customer the lack of stock or lead times for an item. As shown in figure 1, Aritzia can essentially pre-sell items, which is also a big boost to its working capital. Read