# Capri and Figs Pay 10x Air Freight to Dodge Stockouts—When Margin Beats Lost Sale

*Brands are absorbing steep logistics costs to keep hot SKUs in stock, accepting thinner margins over empty shelves.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-08-18.

Canonical: https://www.pops4.com/stash/articles/capri-and-figs-2026-08-18t03-6
Subject: Capri and Figs
Tags: air freight, inventory management, logistics, margin strategy, stockouts

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Capri Holdings and Figs have turned to air freight as a tactical lever when inventory planning fails, swallowing costs that can run **ten times** ocean shipping rates to keep fast-moving products on shelves, according to Modern Retail. The brands are accepting compressed margins in exchange for preserving revenue—a calculated trade when lost sales cost more than expensive logistics.

The mechanics are direct. When a SKU moves faster than forecast or a production delay threatens a launch window, brands ship via air instead of waiting weeks for ocean containers. Capri Holdings disclosed the practice in recent earnings calls, citing air freight as a cost driver when inventory misjudgments or supply chain delays created urgency. Figs has used the same method to close gaps on core medical apparel lines that cannot afford stockouts during peak ordering cycles. Both companies frame the expense as preferable to losing customers who will buy from a competitor rather than wait.

The underlying mechanism is margin arbitrage. A product that moves at **60% gross margin** can lose all profit if shipped by air at **$8 per kilogram** instead of ocean freight at **$0.80**, but if the alternative is a stockout during a **$500,000** weekly revenue window, the brand takes the hit. The calculus shifts when the product has short purchase cycles, high replenishment rates, or seasonal demand that will not return. A winter jacket shipped late is dead inventory; a winter jacket air-freighted in October preserves the season's revenue even if margin drops from **60% to 35%**. The brand keeps the customer, protects the relationship with the retailer, and avoids clearance markdowns later.

A small physical-product brand can run the same play without a logistics department. The first step is identifying which SKUs justify the cost. Pull the last **90 days** of sales velocity by SKU. Flag any product where a **7-day** stockout would cost more in lost revenue than the air freight delta. For a **$45** retail item with **$18** landed cost and **$200** weekly revenue, calculate: air freight adds **$6** per unit, dropping margin from **$27** to **$21**. If the stockout loses **10 units** of weekly sales, that is **$270** in gross profit vs. **$210** in reduced profit if air-shipped. The brand nets **$210** instead of **$0**.

Next, build a trigger system. Set a reorder alert at **14 days** of stock instead of the usual **30**. When inventory crosses that threshold and the next ocean shipment is **21+ days** out, request an air freight quote from your freight forwarder for a partial shipment—**50 to 100 units** instead of the full container. Many forwarders offer consolidated air freight at **$4 to $7 per kilogram** for small parcels. A **20-kilogram** box of **50 units** costs **$100 to $140** in air freight vs. **$10 to $15** ocean, adding **$2 to $2.60** per unit. Ship only the fast movers, let the rest come by sea. The brand pays the premium on **15% of the order** to cover the gap, preserves margin on the other **85%**, and keeps the SKU live for **14 days** until the container arrives.

The broader pattern is treating logistics as a variable cost lever, not a fixed line item. Brands that lock into a single shipping method lose flexibility when demand shifts. Maintaining relationships with both ocean and air carriers, even if air is rarely used, creates an option when the cost of being out of stock exceeds the cost of speed. The next move is forecasting with cushion on the top **10%** of SKUs by revenue, so the air freight decision is rare rather than routine.

## The takeaway

Air freight costs **10x** ocean rates but preserves revenue when stockouts cost more than margin compression.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
- LLM context: https://www.pops4.com/stash/llms.txt
- MCP endpoint, for AI agents: https://mcp.pops4.com/mcp
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