Focus on Profitability: What Every DTC Brand Should Learn Now
Summary
Growth at all costs is over. Drew shares insights on cutting costs, knowing your customer, and boosting margins.
🎧 Want more insights like this? Listen to the full episode here.
Transcript
Stop chasing growth at all costs is probably my big takeaway that that is something that's universal to everybody now in 2025. You know, the days of epic VC valuations are gone. Right. I mean, yes, you got to grow, but you got to grow profitably.
I remember Abercrombie closed something like 20 % of their stores to focus on profitability. And so you and I have been a part of a lot of these diligence processes when we go to acquire a big brand. mean, we were close to Kingswood when they were looking at Cost Plus World Market and a grocery chain, Save Mart they were looking at and Bonobos. And a lot of the analysis at that point was like, which stores do you keep open and which do you close?
It's often a very simple calculation. It's like you close the ones that are not profitable because you don't need to grow that fast, you know, if you're going to be more profitable. And I think the second big takeaway is to know your customer and serve that customer really well. And then I think the margins, you got to talk about the margins.