Weekend Briefing: Share prices for public companies drop even as revenue grows

Last week, a number of fashion brands saw their share prices drop even as their revenues started to return to normal after a slow 2023. Don’t forget to subscribe to the Glossy Podcast for interviews with fashion industry leaders and Week in Review episodes, and the Glossy Beauty Podcast for interviews from the beauty industry. —Danny Parisi, sr. fashion reporter

Investors are still nervous about publicly traded fashion companies’ weaknesses

Last week, some major publicly traded fashion brands reported that they’d clawed back some of their lost revenue from 2023. Birkenstock, which went public in October, had a disappointing first few weeks after its IPO in which its stock dropped 13% on the first day.

But on Wednesday, the company reported its earnings showing the potential for its 2024 revenue to reach nearly $2 billion, above analysts’ expectations. And yet its stock slid 12% after revealing this forecast, which UBS analysts attributed to the report’s lack of any stellar, confidence-boosting metrics. The price slump indicated that investors are still jumpy about brands that have newly entered the public market.

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