Direct-to-Consumer Darlings Stumble as Investors Prioritize Profits Over Growth
• Direct-to-consumer companies like Warby Parker, AllBirds, and Rent the Runway have seen their stock prices plummet 75-95% from peak prices
• These companies focused too heavily on fast growth and not enough on profitability in their early years
• Economic downturns have shifted investors to prioritize profitability over growth prospects
• Some direct-to-consumer companies are being taken private or declaring bankruptcy
• It may be easier for these companies to restructure finances and survive as private rather than public companies