⦿ Executive Snapshot

• What: Truist Securities is analyzing weekly sales data for brands on TikTok Shops, focusing on Vans' performance.
• Who: Truist Securities, VF Corporation (Vans and Timberland), Under Armour, Crocs, Gap, Ralph Lauren, Ulta Beauty, Shark Ninja.
• Why it matters: The analysis highlights the impact of promotional discipline on sales performance within the evolving landscape of social commerce.

⦿ Key Developments

• Truist tracks total global TikTok posts and views for over 300 hashtags weekly, starting data collection in December 2024 and February 2025.
• Vans recorded a strong week in mid-March with estimated gross merchandise value (GMV) exceeding $500,000, primarily from the Lil Pergs Tote Bag.
• Current weekly GMV for Vans is estimated at approximately $150,000, up from around $80,000 the prior week but well below the March peak.
• Vans continues to sell its top 20 products at full price without promotional discounts.
• Truist maintains a Hold rating on VF Corporation and Under Armour while not rating Crocs, Gap, Ralph Lauren, Ulta Beauty, or Shark Ninja.

⦿ Strategic Context

• The rise of social commerce platforms like TikTok has transformed retail strategies, pushing brands to adapt to new consumer engagement methods.
• The focus on maintaining pricing discipline amidst fluctuating sales momentum reflects broader challenges in balancing brand integrity with competitive pricing strategies.

⦿ Strategic Implications

• Immediate implications include potential adjustments in marketing strategies for brands to enhance sales on TikTok Shops.
• Long-term, the data may influence how brands approach pricing and promotions in social commerce, impacting overall sales strategies.

⦿ Risks & Constraints

• Potential risks include regulatory scrutiny of social commerce practices and shifts in consumer behavior that may affect sales.
• Competition from other brands and platforms could hinder Vans' ability to maintain sales momentum on TikTok.

⦿ Watchlist / Forward Signals

• Future developments to watch include changes in promotional strategies by Vans and other brands on TikTok Shops.
• Monitoring of GMV trends and consumer engagement metrics on TikTok will signal the effectiveness of current strategies and potential shifts in market dynamics.