Digitally Native Companies Grow Profitably in New Era for Retail
Rothy's, a direct-to-consumer footwear brand, is growing profitably after expanding into wholesale and building its store fleet. The company saw sales grow 17% to $211 million last year, its best volume year since it launched nearly a decade ago. Comparable sales at its stores grew 20%, and the company posted positive EBITDA for the full year with margins above 10%.
- By diversifying into wholesale partnerships and brick-and-mortar stores, digitally native companies like Rothy's are adapting to a new reality where an online-only business is no longer enough to survive, forcing them to rethink their retail fundamentals.
- As Rothy's continues to expand its wholesale and store presence, what will be the minimum level of profitability required for the company to maintain its momentum and competitiveness in the footwear market?