A LAST WORD: GROSS PROFIT MARGINS 📈; STOCK PRICE 📈
Furthering my theory that Amazon will begin acquiring fashion retailers who’ve focused on eCommerce as their primary distribution method, the average margin of a publicly traded apparel retail brand (see: $RL, $Lulu) is 58%. This is a full 24 pts higher than Amazon’s existing margins.
In recent months, Amazon has begun to roll out their in-house, consumer packaged goods as the Bezos-led company works to continue the eCommerce giant’s swift rise in market cap. The company is now trading at ~$720/share and is worth nearly $390B.
See more of the issue here.