A brand with a quirky, colourful and quirky design has taken a big hit in the UK beauty and fashion market.
Weirdo, an online lingerie brand that offers cute, whimsical designs, posted a disappointing loss of $1.2 million (NZ$1.5 million) in the second quarter of 2018.
It posted losses of $2.5m and $4.4m, respectively.
Its stock was down 1.7 per cent in morning trading.
The company had a strong business and revenue growth in the US, but its popularity is waning in Asia.
This trend will continue until there is a clear trend towards more traditional brands, says analyst David Shuman.
Weirdos most successful models are American women and men, but that may be changing in coming years, Shuman says.
A recent study by research firm Kantar Worldpanel found that Asian consumers are becoming more interested in American brands.
For the second consecutive quarter, Weirdos share fell.
The brand had the third lowest share of the global beauty market at just 3.9 per cent.
“This is a very, very tough time for the brand,” Shuman said.
I’m sure that the US will see a real shift towards more of a traditional brand in the coming years.
There are now more people wearing the dress than ever before, he says.
And there is definitely going to be more interest in the brands that have been around for so long.
Despite the decline in the stock, Shumer expects that the company will recover in the short term.
However, he said that there is an opportunity for the company to rebound.
When we look at the trend over time, we are seeing that the trend is changing.
And I think the brand is well positioned for that,” Shumer said.
It has to be global,” Shumans said.””
The women’s space is so much more accessible now, and the brand really is a global brand.
It has to be global,” Shumans said.”
They need to be able to cater to a range of customer segments.
I think it’s very likely that in the next five to 10 years they’ll be able be more global and cater to every customer.”
Shuman believes that the rise of women-only clothing brands like Abercrombie and Fitch have a positive impact on the trend.
“The trend is so global and so much larger now than it was 10 years ago, and women are very excited about the change.
I believe that the brand and the fashion industry will see the shift and will be able grow more than they are now,” he said.