EcomInfluence
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Thrasio Goes Under

Thrasio Goes Under

and more D2C / ecom stories this week

Adam Chudy
March 04, 2024

Ecom Influence

TL;DR

Thrasio goes bankrupt. Walmart shows signs of life in e-com. Tons of recent insider cashouts and a great workwear brand to consider.

Stock Prices

Quick Hits

Thrasio files for bankruptcy! $3 Billion raised down the drain.

WalMart Family cashes out $1.5 Billion after recent stock jump.

Lebron launches his men’s grooming line “The Shop”

Apple cancels its car plans

Listing of the Week

What We Like:

Good revenue range. Reasonable multiple with a very VERY healthy margin of 30%.

Diverse revenue streams with 20% coming from Tiktok Shop and successful facebook ads.

Lot of product expansion opportunities in the work wear category which I rarely hear people talk about.

What We Don’t Like:

Tiktok shop is a fickle, fickle game. This could be a great revenue growth platform or could go away tomorrow. It also often relies on viral hits. Make sure you know how that platform works.

Production is in house which provides a ton of control, but is a more complicated and regulated way to do e-com than importing from overseas. Make sure you are ready for US based employees.

Finally, the owners seem to work in the business (2 of them) full time. Make sure that account for the cost to hire to replace those roles.

Thread of the Week

We are switching it up and going with linkedin today. Destaney Wishon (CEO of btr media) has some great stats on sponsored brand ads.

🔶Sponsored Product Conversion User - 7.37%

🔶 Sponsored Product + Sponsored Brand Conversion User - 20.81%

🔶 Sponsored Product + Sponsored Brand + Sponsored Display + DSP Conversion User - 23.32%

Destaney Wishon on LinkedIn: Massive CVR increase with Sponsored Brand Ads 📈 Check out this headline… | 20 comments

Massive CVR increase with Sponsored Brand Ads 📈 Check out this headline ad ⬇️ Clear image, great copy, strong targeting. Sponsored Brand ads are powerful.… | 20 comments on LinkedIn

www.linkedin.com/posts/destaney-wishon_massive-cvr-increase-with-sponsored-brand-activity-7158132288453505024-jRf0/?utm_source=share&utm_medium=member_desktop

UnyBrands (Amazon aggregator) shows Market Isn’t Dead

Unybrands just closed it’s Series B funding (allowing it to refinance its credit facility) and purchased 6 new brands. This pushes Unybrands above 30 and $175MM in revenue.

Thrasio Files Bankruptcy

King of the aggregators files bankruptcy showing the end of the aggregator boom. Equity fully wiped out. Some high level stats:

Couldn’t make its most recent $25MM payment.
$855MM in debt, $2.3B in preferred stock
200 brands, 900 employees (fired 600)
NEVER MADE MONEY

Get a great breakdown here:

Random Statistics for FBA and Thrasio nerds:
They have never made money.
$1.1 billion of federal NOLs as of 2022. An NOL is a net operating loss.
415 employees in the US, 100 in China and 74 ICs, and 185 through third party companies.
24,000 Products, 350 contract manufactures,… twitter.com/i/web/status/1…
— Ari Ozick (@ariozick)
1:44 PM • Feb 29, 2024

WalMart Makes Ecom Progress

As it slashes ecommerce losses by 40% as it continues to lower delivery and fulfillment costs. The company now offers same day delivery from 90% of its stores. Profit coming soon?

GymShark D2C Breakdown

It’s always interesting to take a look at fast growing, major D2C brands. Gymshark has taken the sports and athleisure market by storm and luckily they have to publicly file info as a UK company.

Continued revenue growth, but only $10MM in net on $536MM in revenue in 2023 for a shrinking margin of 1.8%. Painful to see that shrink to that point.

More growth over profit? Doesn’t seem sustainable from as margin has compressed from a healthy 9% to sub