Brands Shifting From Growth at All Costs to Financial Discipline

If we look back, you know, public DTC brands like Crocs and Lulu and Yeti, you know, we aggregate up their their price to earnings. And I look back at, you know, in 2021 in these a lot of these brands had just like value to EBITDA multiples of 16 or higher, 20, now are more under 10. They're in the neighborhood of eight. So you've just got this compression of multiples, which had a really interesting effect. VCs got out of the DTC game. And with that went the whole mentality of grow at all costs. Revenue multiples went from four to under one, around one. So I don't think any DTC brands are bought or sold on a revenue multiple anymore. And certainly there's like strategic acquisitions, but you can't count those. It's just enforcing this financial discipline on companies, right? They've got to grow and they got to grow profitably, which means marketing has to be efficient.