Millennial-era retail was supposed to have principles. But lower prices have won out.

Summary

The reported sale of Everlane to Shein and the markdown sale of Depop indicate a shift in the sustainable fashion industry, prioritizing lower prices over principles. This may impact the stock prices of related companies and the overall sector. Allbirds' pivot to AI also reflects changing strategies in the industry.

Market Impact

The sale of Everlane to Shein may lead to a short-term decline in the stock prices of similar sustainable fashion companies, as investors reassess the industry's priorities. This could also lead to a sector rotation, with investors favoring companies that prioritize affordability over sustainability.

Key Drivers

• Everlane's sale to Shein
• Depop's markdown sale
• Allbirds' pivot to AI

Risks

• Increased competition from fast-fashion companies like Shein
• Decreased investor interest in sustainable fashion companies

Time Horizon

Short Term