👗 #Fashion lives on perception, but profitability tells the truth.
From #fastfashion to #hautecouture, who actually kept their #EBITmargin alive through the post-COVID storm?
Let’s dig in!
🧵 (1/5)
#FindItFinancials #financialanalysis #valueinvesting #investing #markets
📊 2020–2024 recap:
🟢 All fashion houses improved EBIT-margins since the COVID low.
📉 2020 was brutal; most saw margins collapse 30–45%.
💎 #Richemont ? Only a -3.7% drop; quiet resilience when others bled.
(2/5)
🧑🏫 Lesson:
☑️ The perfect company doesn’t exist.
☑️ The resilient one does.
Whether #luxury or fast fashion, the winners are those who *recover margins*, not avoid losses!
(3/5)
❕ Deeper dive:
Margins are only one thread in the fabric. In fashion, every company passed the EBIT-margin test, none disqualified.
But add #ROIC and #revenuegrowth, and you’ll start to see who’s truly tailoring long-term value.
PS! All puns intended! 🤡
(4/5)
👇 Conclusion:
☑️ In fashion, patterns matter, in profits too.
☑️ Single data points mislead; consistency tells the story.
Next up → #PEG and is luxury overvalued???
Full breakdown ➕ graphs ➡️ https://thebarnblog.substack.com/p/using-ebit-margin-trend-for-analysis
The Barn