All in the brand, page-11

I don’t think these things are viewed as a fashion or luxury good, hence it doesn’t have the “Apple premium”. For example, Apple keep increasing their prices because their iPhones and MacBooks are seen as a luxury good.

Down jackets are more of a practical good. I think Kathmandu haven’t been discounting enough and are losing market share. Their margins went up - that alone is a signal that they haven’t discounted enough during sales period. At the end of the day you still need to get product into the hands of the customer. You can’t continue displaying $600 jackets on shelves and hope to grow profits.

My view is the brand has value, and they should use it to their advantage. But ignoring the competition like Macpac and Uniqlo could prove to be disastrous.

Disclaimer: I’m a retail analyst by trade