Weekend Briefing: Fashion companies’ growth is increasingly hard to predict

Growth plans with specific revenue goals are a good way to instill confidence in investors, but it’s increasingly hard to predict how the market will react over a longer period. Don’t forget to subscribe to the Glossy Podcast for interviews with fashion industry leaders and Week in Review episodes, and the Glossy Beauty Podcast for interviews from the beauty industry. –Danny Parisi, sr. fashion reporter

The growth projections from some of fashion’s biggest brands

Last week, American Eagle Outfitters, the parent company of American Eagle and Aerie, among other brands, announced a new three-year growth plan. Like many growth plans, it’s ambitious, promising 3-5% annual revenue growth per year and a 10% increase in profit margins over the next three years.

The company’s fourth-quarter earnings, which showed 4% revenue growth, suggest that the company is on the right track, but predicting revenue growth over even one year, let alone three, has recently proven a difficult task for many publicly traded fashion brands. Earnings reports from the last week showed how some of the biggest companies in fashion are faring in their growth and revenue goals.

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