The novel coronavirus has only exacerbated America’s looming retail apocalypse. During pre-pandemic days, 9,302 U.S. store closures were already in effect in 2019, which largely included chain department stores. Since then, nearly 100,000 U.S. businesses have shut down because they couldn’t recover after temporary closure enforcements, according to Yelp’s Local Economic Impact Report.
Despite the alarming retail devastation brought on by COVID-19, U.S. multi-brand menswear ecommerce company Differio recently reported an uptick in annual profits – a jump that shows promise for the future of trendy men’s fashion retailers.
The most recent Differio annual revenue report averaged a 35% increase in comparison to last year’s profits, likely estimated at $64 million. In addition to a revenue spike, Differio has focused efforts on remodeling operations to adapt to COVID-19 regulations while quickly navigating around unforeseen changes to menswear’s trend forecasts.
The pandemic is rapidly changing the landscape of fashion largely due to the increase in remote work. Currently 42 percent of the U.S. labor force are working full time from home, according to a Stanford policy brief by Nicholas Bloom, Professor of Economics. The takeaway: nearly half of Americans are telecommuting in stylish streetwear simply because there’s less pressure to dress the part at home.
“Since people are seeking solace and self-care more than ever, we’ve seen a significant increase in spend on comfort-focused merchandise. Our conversion rates are showing that men are shopping for loungewear and activewear that still makes a statement, such as designer sneakers and trendy joggers,” states Differio CEO Jimmy Chrabieh.
Although the pandemic may have pushed the fashion industry further into the casual lounge niche, the “casualization” of fashion isn’t an entirely new trend forecast either. Since 2017, luxury fashion houses have merged with major streetwear brands or launched private-label activewear lines in order to keep up with demand.
Unlike businesswear brands, such as Brooks Brothers and Men’s Wearhouse, that have fallen deeper into pandemic-related bankruptcies, Differio is just one of several trendy menswear retailers sparking investors’ interest. Some of today’s top stocks include fashion-forward men’s streetwear and athleisure brands that are gaining traction by focusing on brand exclusivity and unique product offerings.
As trend-focused fashion companies climb the stock market, the next Differio annual revenue report is said to be similarly forecasted for double-digit growth. More importantly, growing profit margins during unprecedented times displays sustainability – a particularly attractive investment asset for any fashion brand.
