A.K.A. Brands shares slump in trading debut as company highlights risk that eco-conscious Gen Z shoppers will reject its fast-fashion business model

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A.K.A. Brands Brands Holding Corp., a company targeting Gen Z and millennial shoppers with a fast-fashion business model, was facing further pushback from investors on Thursday, a day after a less-than-stellar stock market debut. Shares ended the day at $9.99, below their issue price of $11. That came after the company’s initial public offering priced at the low end of a range that had already been lowered. Shares fell another 2.9% in Thursday trading. At $11 per share, the company was valued at $1.4 billion, compared with the valuation of $2.5 billion it was originally seeking. The company’s prospectus identified a key challenge and risk factor: its fast-fashion model at a time of heightened environmental awareness. A.K.A. AKA, -2.90% launched 500 to 800 new styles each week on average in 2020. Speed and newness are two of the biggest markers of fast-fashion. However, the company’s target market has increas
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