Global Apparel and Lifestyle Accessories

Sector Update
September 2014
Global Consumer & Retail
Investment Banking
Global Apparel
and Lifestyle Accessories
In this Issue:
– Sector Trends
– Insights
– M&A Activity
– Comparables Trading
About William Blair
Investment Banking
William Blair’s investment banking group combines signi�icant transaction experience,
rich industry knowledge, and deep relationships to deliver successful advisory and
�inancing solutions to our global base of corporate clients. We serve both publicly traded
and privately held companies, executing mergers and acquisitions, growth �inancing,
�inancial restructuring, and general advisory projects. This comprehensive suite of
services allows us to be a long-term partner to our clients as they grow and evolve.
From 2010-2014, the investment banking group completed more than 330 merger-andacquisition transactions worth $73 billion in value, involving parties in 36 countries and
�ive continents, was an underwriter on more than 20% of all U.S. initial public offerings,
and raised nearly $100 billion in public and private �inancing.
Elizabeth A. Pickens
Managing Director
Head of Global Apparel and
Lifestyle Accessories
[email protected]
+44 207 868 4479
+1 212 237 2700
William Blair
A Word on Lifestyle
In this first Issue of William Blair’s dedicated coverage of the Global Apparel and Lifestyle Accessories Sector, we provide an
overview of market activity and valuation data across the worldwide sector leaders. We have classified the public comparable
companies into seven major groups: Global Leaders, Modern Lifestyle, Performance Apparel, Traditional Apparel and Accessories,
Youth/Teen, and eCommerce. In addition to the established sector leaders, we will also focus on the cohort of rapidly emerging nextgeneration global brands, who are going public earlier and getting funded in the private markets today.
Our consumption choices, particularly in apparel and accessories, have long communicated our personal affiliations and aspirations.
Today, the consumption experience extends beyond the moment of purchase, often selling an experience, or communicating a value
set. This has broadened the remit for brands, invoking themes of greater social responsibility, seen by the growing prevalence of B
Corps, and community, including content-driven websites and entertainment-driven retail venues.
These changing consumer values have given rise to new sector leaders, including emergent brands Bonobos and Harrys of London,
lifestyle visionaries like Hunter Original, new marketplaces such as Gilt Groupe, and Vide Dressing, and radical new models such as
Warby Parker. In turn, M&A activity is driven by buyers keeping pace with these shortening cycles of innovation. Examples of such
activity includes the acquisition of Trunk Club by Nordstrom, and announced acquisition of Mytheresa.com by Neiman Marcus.
Lifestyle-driven consumption is an increasingly prevalent concept, making it a rare moment in time for valuations in this exciting
space.
We look forward to exploring the sector with you.
Sincerely,
Beth Pickens
Global Apparel and Lifestyle Accessories Report
A Word on Lifestyle
William Blair
Table of Contents
Consumer & Retail Investment Banking Contacts .................................................................................................................................................................... 3
Consumer & Retail Research Coverage.......................................................................................................................................................................................... 4
Selected William Blair Transactions ............................................................................................................................................................................................... 5
2014 Global Investor Conferences................................................................................................................................................................................................... 6
Sector View: Comparable Companies............................................................................................................................................................................................. 7
LTM Global Apparel and Lifestyle Accessories Sector Performance................................................................................................................................. 8
Comparable Company Analysis ........................................................................................................................................................................................................ 9
News Review...........................................................................................................................................................................................................................................12
IPO Backlog..............................................................................................................................................................................................................................................13
Equity Research Team ........................................................................................................................................................................................................................14
Notes ..........................................................................................................................................................................................................................................................15
Disclosures...............................................................................................................................................................................................................................................16
Global Apparel and Lifestyle Accessories Report
Table of Contents
William Blair
Consumer & Retail Investment Banking Contacts
Consumer & Retail Investment Banking
Elizabeth Pickens, Managing Director, joined William Blair in 2000. Ms. Pickens specializes in advising
international branded consumer and retail growth companies across global apparel and lifestyle brands. She is
also an angel investor in early-stage consumer companies, including Bonobos.com and InteriorDefine.com. Ms.
Pickens holds an MBA from the University of Chicago Graduate School of Business and a BS in finance from the
University of Illinois at Urbana-Champaign. She also completed studies at the Université de Paris IV-Sorbonne.
[email protected]
+44 20 7868 4479
Adam Filkin, Managing Director, joined William Blair in 2007 within the Consumer and Retail Investment
Banking Group. Mr. Filkin has extensive transaction experience across numerous consumer verticals, including
consumer products, personal care and food. He joined William Blair from Bank of America Securities. Before
joining Bank of America, Mr. Filkin was a manager at A.T. Kearney, focusing on consumer and retail companies.
Mr. Filkin holds an MBA with a concentration in finance from the University of Chicago Graduate School of
Business, and holds a BSE. in chemical engineering from the University of Michigan.
[email protected]
+1 312 364 8077
Michael Siska, Managing Director, joined the firm in 2002. Before joining William Blair, Mr. Siska worked in
private equity for Allstate Private Equity in Chicago and 3i Group in London. He spent five years in the products
and business services industry group at Andersen Corporate Finance LLC. He focuses on specialty retail, food
retail, restaurants, and consumer services. Mr. Siska earned an MBA from the University of Chicago and a BS,
with honors, from the University of Illinois at Urbana-Champaign.
[email protected]
+1 312 364 5393
Laura Provenzale, Managing Director, joined Blair in 2014 within the Consumer and Retail Investment Banking
Group. Prior to joining William Blair, Ms. Provenzale built the restaurant investment banking practice and
executed transactions across the consumer sector at Raymond James. Before Raymond James, she led the
consumer and retail effort at WR Hambrecht, and prior to WR Hambrecht led the software M&A and the
consumer products investment banking practice at Banc of America Securities. Ms. Provenzale earned her MBA
from Fordham University and graduated with honors from Lehigh University with a BS in accounting.
[email protected]
+1 415 248 5919
Global Apparel and Lifestyle Accessories Report
Consumer & Retail Investment Banking Contacts 3
William Blair
Consumer & Retail Research Coverage
Amy Noblin
Sharon Zackfia
Mark Miller
Daniel Hofkin
Jon Andersen
Global Apparel and Lifestyle Accessories Report
4 Consumer & Retail Research Coverage
William Blair
Selected William Blair Transactions
$230,000,000
$246,047,100
$240,033,072
$388,743,210
$90,000,000
$94,112,106
$74,750,000
$376,740,000
§363 sale to
Initial Public Offering
Initial Public &
Follow-on Offerings
November 2013
March 2013
November 2012
April 2012
Not Disclosed
Not Disclosed
has been acquired by
has completed a leveraged
recapitalization with
Authentic Brands Group
Initial Public &
Follow-on Offering
Initial Public Offering
Proventus
Berkshire Partners
December 2012
February 2011
October 2010
August 2007
July 2007
June 2007
Global Apparel and Lifestyle Accessories Report
Selected William Blair Transactions 5
William Blair
2014 Global Investor Conferences
34th Annual Growth Stock Conference
10-12 June 2014, Chicago
•
William Blair's Growth Stock Conference is an exclusive
gathering of the late-stage growth stock community,
including senior executives of fast-growing private
companies, corporate development teams from large- and
midcap industry leaders, and private equity investors
•
Featuring high-ranking senior management, a forum that
encourages the exchange of ideas, and extensive one-on-one
meetings, our conferences have become premier events for
growth stock investors
•
Superior access to industry leaders
•
More than 350 professionals from across the corporate
landscape
•
Our highly respected lineup of growth stock conferences
provides investors a private audience with C-level
executives in an environment that is conducive to dialogue
and interaction
16th Annual Private Equity Conference
17-18 September 2014, Chicago
This Year’s Event Highlights
•
55 participating companies
•
More than 600 registered institutional private equity
investors
•
Roundtable discussions focused on the following industry
sectors and topics:
–
•
Business services, commercial services, cross-border
investing, debt capital markets, equity capital markets,
healthcare, industrials, retail and restaurants, special
situations and restructuring, and technology
Roughly 682 requested one-on-one meetings between
private equity investors and company management
Global Apparel and Lifestyle Accessories Report
6 2014 Global Investor Conferences
William Blair
Sector View: Comparable Companies
Global
Modern Lifestyle
Performance
Traditional
Traditional Luxury
Youth
eCommerce
Global Apparel and Lifestyle Accessories Report
Sector View: Comparable Companies 7
William Blair
LTM Global Apparel and Lifestyle Accessories Sector Performance
LTM — Indexed Stock Price Performance
S&P 500 (17.7%)
Traditional Luxury (-9.7%)
Modern Lifestyle (16.1%)
EURO STOXX TMI (7.6%)
Traditional (17.5%)
Global (7.5%)
Youth (-34.2%)
Performance (6.8%)
eCommerce (20.9%)
160.0%
140.0%
120.0%
100.0%
80.0%
60.0%
Source: CapitalIQ, public filings and William Blair analysis.
Global Apparel and Lifestyle Accessories Sector Valuation Overview
Sector
Enterprise Value / Revenue
Enterprise Value / EBITDA
P/E Ratio
LTM
LTM
2014E
2014E
2015E
2014E
2015E
2015E
’14E-’15E 2014E
Revenue Gross
Growth
Margin
2014E
EBITDA
Margin
2014E
P/E/G
eCommerce
2.18x
2.16x
1.67x
12.2x
18.2x
17.0x
34.3x
27.8x
25.6%
32.6%
5.3%
2.7x
Global
2.42x
2.25x
2.04x
13.1x
12.2x
10.9x
22.6x
19.8x
9.6%
54.3%
18.2%
4.0x
Modern Lifestyle
2.79x
3.20x
2.72x
13.2x
12.3x
11.6x
22.2x
18.6x
18.7%
52.9%
23.4%
1.9x
Performance
1.27x
1.45x
1.28x
12.8x
12.8x
11.2x
25.0x
20.6x
11.3%
43.3%
8.3%
8.7x
Traditional
1.95x
1.87x
1.75x
10.8x
10.1x
9.1x
17.3x
15.1x
7.2%
52.3%
21.7%
1.3x
Traditional Luxury
3.04x
2.87x
2.64x
12.7x
11.6x
10.4x
20.3x
17.9x
8.4%
62.3%
24.0%
2.1x
Youth
1.07x
1.01x
1.04x
7.1x
7.3x
6.7x
17.6x
14.8x
6.2%
43.8%
11.4%
1.4x
Global Apparel and Lifestyle Accessories Report
8 LTM Global Apparel and Lifestyle Accessories Sector Performance
William Blair
Comparable Company Analysis
eCommerce
Company
YOOX S.p.A.
Share Price
(Local
Currency)
% of 52
8/15/2014 Week High
Market
Value
($MM)
Enterprise
Value
($MM)
Enterprise Value / Revenue
Enterprise Value / EBITDA
PE Ratio
LTM
LTM
2014E
2014E
2015E
2014E
2015E
2015E
‘14E-‘15E
Revenue
Growth
2014E
Gross
Margin
2014E
EBITDA
Margin
2014E
P/E/G
24.2
51%
1,429
1,410
2.17x
1.94x
1.59x
27.0x
18.8x
14.7x
NMF
NMF
21.9%
37.1%
8.0%
1.8x
333.2
82%
153,955
149,088
1.82x
1.64x
1.36x
NMF
24.5x
17.8x
NMF
NMF
20.3%
28.3%
4.9%
67.0x
Blue Nile Inc.
26.3
53%
338
222
0.49x
0.49x
0.43x
9.9x
9.9x
8.9x
32.0x
26.4x
16.1%
18.6%
5.0%
1.9x
Zulily, Inc.
36.7
50%
4,583
4,273
4.51x
3.51x
2.40x
NMF
NMF
NMF
NMF
NMF
46.3%
27.2%
2.5%
3.4x
ASOS plc
39.6
33%
3,284
3,165
Amazon.com Inc.
2.13x
1.79x
1.45x
NMF
26.6x
19.4x
NMF
35.9x
23.3%
51.8%
6.7%
1.9x
Median
2.13x
1.79x
1.45x
18.5x
21.6x
16.3x
32.0x
31.1x
21.9%
28.3%
5.0%
1.9x
Average
2.23x
1.87x
1.45x
18.5x
19.9x
15.2x
32.0x
31.1x
25.6%
32.6%
5.4%
15.2x
Global
Company
Share Price
(Local
Currency)
% of 52
8/15/2014 Week High
Market
Value
($MM)
Enterprise
Value
($MM)
Enterprise Value / Revenue
Enterprise Value / EBITDA
PE Ratio
LTM
LTM
2014E
2014E
2015E
2014E
2015E
2015E
‘14E-‘15E
Revenue
Growth
2014E
Gross
Margin
2014E
EBITDA
Margin
2014E
P/E/G
H & M Hennes &
Mauritz AB (publ)
42.8
98%
70,876
68,056
3.37x
3.17x
2.86x
16.3x
15.4x
13.7x
24.5x
21.7x
11.2%
59.0%
20.6%
2.1x
The Gap, Inc.
42.1
95%
18,572
18,421
1.14x
1.10x
1.05x
7.1x
6.8x
6.3x
14.2x
12.6x
4.6%
46.3%
15.9%
1.2x
Ralph Lauren
Corporation
163.2
90%
14,351
13,556
1.81x
1.74x
1.61x
9.8x
9.8x
9.0x
19.5x
16.7x
7.8%
57.9%
18.4%
1.3x
28.7
88%
89,530
84,636
3.76x
3.52x
3.17x
16.5x
14.9x
13.3x
26.1x
22.8x
10.9%
59.2%
22.8%
2.3x
322.4
73%
32,858
30,026
Industria de Diseno
Textil SA
Fast Retailing Co. Ltd.
2.29x
2.15x
1.90x
17.1x
16.9x
15.2x
NA
32.1x
13.3%
49.9%
13.4%
NA
Median
2.29x
2.15x
1.90x
16.3x
14.9x
13.3x
22.0x
21.7x
10.9%
57.9%
18.4%
1.7x
Average
2.47x
2.34x
2.12x
13.4x
12.7x
11.5x
21.1x
21.2x
9.6%
54.5%
18.2%
1.7x
Modern Lifestyle
Company
Share Price
(Local
Currency)
% of 52
8/15/2014 Week High
Market
Value
($MM)
Enterprise
Value
($MM)
Enterprise Value / Revenue
Enterprise Value / EBITDA
PE Ratio
LTM
LTM
2014E
2014E
2015E
2014E
2015E
2015E
‘14E-‘15E
Revenue
Growth
2014E
Gross
Margin
2014E
EBITDA
Margin
2014E
P/E/G
Moncler S.p.A.
16.2
73%
4,047
4,330
NMF
4.69x
4.11x
16.2x
14.5x
12.5x
26.1x
21.4x
14.1%
71.6%
32.4%
Coach, Inc.
36.3
63%
10,233
9,435
1.86x
2.11x
2.16x
5.0x
8.5x
9.1x
17.7x
18.0x
(2.5%)
73.0%
37.0%
1.5x
2.8x
Under Armour, Inc.
68.8
97%
7,574
7,379
3.16x
3.16x
1.98x
20.6x
20.6x
14.2x
NMF
NMF
59.6%
48.7%
15.4%
3.0x
Harley-Davidson, Inc.
62.4
84%
13,570
18,235
2.91x
3.25x
3.03x
12.1x
12.2x
10.9x
16.5x
14.3x
7.4%
39.4%
24.0%
1.2x
Kate Spade & Company
31.6
74%
4,005
4,237
2.99x
3.91x
3.16x
NMF
NMF
20.1x
NA
NA
23.5%
57.1%
4.3%
NA
Tumi Holdings, Inc.
23.2
94%
1,577
1,548
3.31x
3.31x
2.52x
14.8x
14.8x
11.5x
26.0x
22.3x
31.2%
57.5%
22.4%
1.7x
Michael Kors Holdings
Limited
78.4
78%
16,178
15,349
NMF
3.74x
3.02x
15.1x
11.6x
9.7x
20.2x
16.7x
23.8%
61.0%
34.0%
0.9x
Vince Holding Corp
32.9
87%
1,210
1,338
4.44x
3.95x
3.37x
23.9x
17.8x
15.0x
35.8x
27.7x
17.3%
47.1%
18.6%
1.4x
Lululemon Athletica
Inc.
38.8
50%
5,659
4,960
3.12x
2.79x
2.46x
10.3x
12.0x
10.6x
23.5x
19.4x
13.4%
54.7%
30.2%
1.4x
G-III Apparel Group,
Ltd.
77.2
92%
1,702
1,765
0.97x
0.85x
0.78x
12.1x
10.1x
8.5x
18.6x
15.7x
9.8%
34.4%
8.1%
1.0x
Apple Inc.
97.5
98%
583,817
576,931
3.24x
3.12x
2.89x
9.8x
9.4x
8.9x
14.9x
13.6x
7.9%
38.4%
33.2%
1.2x
Median
3.12x
3.25x
2.89x
13.5x
12.1x
10.9x
20.2x
18.0x
14.1%
54.7%
24.0%
1.4x
Average
2.89x
3.17x
2.68x
14.0x
13.1x
11.9x
22.1x
18.8x
18.7%
53.0%
23.6%
1.6x
Global Apparel and Lifestyle Accessories Report
Comparable Company Analysis 9
William Blair
Performance
Company
Share Price
(Local
Currency)
% of 52
8/15/2014 Week High
Market
Value
($MM)
Enterprise
Value
($MM)
Enterprise Value / Revenue
Enterprise Value / EBITDA
PE Ratio
LTM
LTM
2014E
2014E
2015E
2014E
2015E
2015E
‘14E-‘15E
Revenue
Growth
2014E
Gross
Margin
2014E
EBITDA
Margin
2014E
P/E/G
Fenix Outdoor AB
47.4
80%
829
529
2.91x
2.68x
2.51x
17.4x
13.9x
12.4x
20.1x
17.4x
NA
54.8%
16.7%
NA
Nike, Inc.
77.3
96%
71,707
67,504
2.67x
2.31x
2.12x
17.1x
15.6x
14.0x
25.1x
21.3x
8.8%
43.6%
15.6%
1.8x
Quiksilver Inc.
PUMA SE
Columbia Sportswear
Company
Black Diamond, Inc.
3.0
33%
520
1,353
0.77x
0.80x
0.77x
13.9x
13.2x
8.9x
NMF
NMF
3.3%
49.4%
5.6%
(0.7x)
252.5
79%
3,773
3,418
0.89x
0.88x
0.84x
NMF
12.5x
10.1x
35.0x
23.4x
4.4%
46.4%
2.5%
(9.9x)
75.2
84%
2,667
2,145
1.27x
1.27x
0.97x
11.3x
11.3x
8.6x
21.5x
18.4x
31.0%
44.2%
11.3%
1.7x
8.0
53%
259
293
1.44x
1.44x
1.21x
NMF
NMF
28.7x
NMF
NMF
19.5%
38.9%
4.4%
(3.6x)
Lafuma SA
26.2
98%
186
169
0.69x
NA
NA
6.4x
NA
NA
NMF
NA
NA
35.0%
10.8%
NA
Adidas AG
79.9
64%
16,719
17,156
0.89x
0.88x
0.83x
10.2x
9.7x
8.4x
19.3x
15.3x
5.8%
48.8%
8.7%
2.1x
ASICS Corp.
22.1
94%
4,189
4,403
1.09x
1.33x
1.16x
9.9x
13.1x
11.4x
24.1x
22.4x
15.2%
44.2%
11.0%
4.7x
6.1
95%
763
925
0.51x
0.50x
0.49x
11.3x
10.8x
10.0x
21.4x
19.1x
2.4%
39.6%
4.6%
1.42x
Median
1.19x
1.18x
1.07x
13.1x
12.8x
10.4x
23.9x
20.6x
7.3%
44.2%
9.3%
2.7x
Average
1.43x
1.45x
1.28x
13.3x
12.8x
11.2x
24.5x
20.2x
11.3%
44.5%
9.2%
12.5x
Mizuno Corporation
Traditional
Company
Share Price
(Local
Currency)
% of 52
8/15/2014 Week High
Market
Value
($MM)
Enterprise
Value
($MM)
Enterprise Value / Revenue
Enterprise Value / EBITDA
PE Ratio
LTM
LTM
2014E
2014E
2015E
2013E
2014E
2015E
‘14E-‘15E
Revenue
Growth
2014E
Gross
Margin
2014E
EBITDA
Margin
2014E
P/E/G
ANN INC.
35.8
82%
1,678
1,551
0.62x
0.61x
0.58x
5.7x
5.6x
5.2x
17.7x
14.2x
4.7%
53.3%
10.9%
1.5x
L Brands, Inc.
62.8
93%
18,319
22,400
2.06x
1.99x
1.88x
10.3x
10.1x
9.2x
19.7x
17.4x
5.4%
46.6%
20.1%
1.7x
V.F. Corporation
61.9
97%
28,015
28,688
2.51x
2.51x
2.14x
14.7x
14.7x
12.2x
20.0x
17.7x
17.1%
48.1%
17.1%
1.5x
Oxford Industries Inc.
61.7
74%
1,015
1,149
1.22x
1.15x
1.07x
9.4x
8.8x
7.8x
20.3x
16.8x
7.5%
55.6%
13.0%
1.1x
14.2
57%
1,193
1,217
0.56x
0.57x
0.55x
5.0x
5.7x
5.1x
17.8x
14.2x
3.1%
41.4%
11.2%
1.1x
112.7
81%
9,278
12,871
1.56x
1.52x
1.43x
11.1x
10.3x
9.2x
17.1x
12.8x
6.3%
52.2%
14.0%
1.4x
Express Inc.
PVH Corp.
Hanesbrands Inc.
98.4
92%
9,800
11,445
2.34x
2.24x
2.03x
14.9x
13.8x
12.4x
20.3x
16.1x
10.3%
35.8%
15.7%
1.3x
Perry Ellis International
Inc.
18.7
88%
293
483
0.53x
0.52x
0.51x
14.6x
10.0x
9.1x
21.3x
15.0x
3.0%
33.3%
3.7%
3.6x
Cherokee Inc.
18.4
97%
155
184
NMF
NMF
NMF
11.7x
11.1x
10.1x
16.2x
15.5x
6.0%
100.0%
51.3%
1.2x
Iconix Brand Group, Inc.
41.2
92%
1,978
3,386
NMF
NMF
NMF
12.3x
11.6x
10.8x
14.7x
15.1x
6.3%
100.0%
61.5%
1.2x
57.6
93%
7,038
7,126
3.07x
2.88x
2.61x
15.7x
14.2x
11.6x
18.7x
15.6x
10.7%
27.7%
19.6%
1.3x
114.2
86%
17,520
18,295
2.93x
2.72x
2.58x
13.0x
11.7x
11.0x
16.9x
15.8x
5.5%
33.2%
22.6%
1.8x
Median
1.81x
1.75x
1.66x
12.0x
10.7x
9.7x
18.2x
15.5x
6.2%
47.3%
16.4%
1.3x
Average
1.74x
1.67x
1.54x
11.5x
10.6x
9.5x
18.4x
15.5x
7.2%
52.3%
21.7%
1.5x
Gildan Activewear Inc.
Next Plc
Global Apparel and Lifestyle Accessories Report
10 Comparable Company Analysis
William Blair
Traditional Luxury
Company
Compagnie Financiere
Richemont SA
Tiffany & Co.
Kering SA
Share Price
(Local
Currency)
% of 52
8/15/2014 Week High
96.1
91%
Market
Value
($MM)
Enterprise
Value
($MM)
54,086
47,319
Enterprise Value / Revenue
Enterprise Value / EBITDA
PE Ratio
LTM
LTM
2014E
3.34x
2014E
3.20x
2015E
2.93x
12.6x
2014E
2015E
2015E
‘14E-‘15E
Revenue
Growth
2014E
Gross
Margin
2014E
EBITDA
Margin
2014E
P/E/G
11.6x
10.5x
18.4x
16.6x
9.4%
63.4%
26.4%
1.6x
97.0
94%
12,750
13,400
3.32x
3.05x
2.84x
13.3x
12.1x
10.8x
22.6x
19.7x
7.5%
58.1%
25.0%
1.6x
208.2
86%
26,385
31,943
2.44x
2.36x
2.19x
11.7x
11.5x
10.2x
17.0x
13.9x
7.6%
62.5%
20.9%
1.6x
2.0x
LVMH Moet Hennessy
Louis Vuitton SA
171.9
86%
86,211
96,370
2.43x
2.34x
2.17x
10.4x
9.7x
8.8x
18.3x
16.2x
7.9%
65.4%
23.5%
Hugo Boss AG
139.9
92%
9,656
9,918
2.99x
2.84x
2.62x
13.7x
12.1x
10.8x
19.5x
17.1x
8.3%
66.2%
21.9%
1.6x
24.4
87%
10,712
10,019
2.58x
2.46x
2.26x
10.6x
10.3x
9.8x
19.8x
18.4x
9.1%
71.2%
24.4%
2.4x
Burberry Group plc
Prada S.p.A
Tod's SpA
Salvatore Ferragamo
SpA
7.0
65%
17,811
17,327
3.62x
3.49x
3.17x
11.8x
11.2x
10.1x
21.2x
18.9x
10.2%
73.9%
30.8%
2.2x
106.7
55%
3,265
3,117
2.40x
2.37x
2.22x
11.2x
10.5x
9.5x
19.7x
17.4x
6.9%
36.0%
21.4%
3.8x
26.7
67%
4,492
4,577
2.68x
2.54x
2.34x
13.0x
11.9x
10.5x
21.5x
18.7x
8.5%
63.3%
20.6%
1.5x
Median
2.68x
2.54x
2.34x
11.8x
11.5x
10.2x
19.7x
17.4x
8.3%
63.4%
23.5%
1.6x
Average
2.87x
2.74x
2.53x
12.0x
11.2x
10.1x
19.8x
17.4x
8.4%
62.2%
23.9%
2.0x
Youth
Company
American Apparel, Inc.
Share Price
(Local
Currency)
% of 52
8/15/2014 Week High
Market
Value
($MM)
Enterprise
Value
($MM)
Enterprise Value / Revenue
Enterprise Value / EBITDA
PE Ratio
LTM
LTM
2014E
2014E
2015E
2014E
2015E
2015E
‘14E-‘15E
Revenue
Growth
2014E
Gross
Margin
2014E
EBITDA
Margin
2014E
P/E/G
0.9
49%
154
388
0.61x
0.61x
0.58x
NMF
9.4x
6.6x
NMF
NMF
4.0%
50.6%
0.5%
NA
American Eagle
Outfitters, Inc.
10.8
64%
2,098
1,770
0.54x
0.55x
0.54x
5.6x
5.8x
4.9x
20.1x
14.8x
1.7%
33.8%
9.6%
1.9x
Guess? Inc.
25.5
73%
2,172
1,725
0.68x
0.68x
0.66x
5.5x
6.3x
5.4x
17.2x
14.1x
2.4%
37.5%
12.4%
2.9x
Abercrombie & Fitch
Co.
41.4
84%
3,103
2,248
0.55x
0.56x
0.55x
4.5x
4.5x
4.1x
17.9x
14.9x
1.4%
62.6%
12.2%
1.0x
The Buckle, Inc.
45.8
84%
2,215
2,023
1.79x
1.75x
1.69x
7.0x
6.9x
6.6x
13.4x
13.0x
3.2%
50.1%
25.6%
2.1x
Bebe Stores, Inc.
2.9
41%
226
99
0.22x
0.23x
0.21x
NMF
NMF
5.8x
NMF
NMF
8.1%
32.0%
(5.9%)
(0.2x)
Vera Bradley, Inc.
19.1
64%
781
768
1.42x
1.48x
1.33x
6.3x
9.0x
7.5x
18.4x
15.2x
11.1%
56.6%
22.3%
1.3x
Francesca's Holdings
Corporation
12.8
52%
541
534
1.57x
1.38x
1.21x
6.1x
6.2x
5.4x
11.9x
10.1x
13.9%
51.7%
25.9%
0.7x
Body Central Corp.
0.4
5%
7
3
0.01x
0.01x
NA
NMF
NMF
NA
NMF
NA
NA
33.8%
(19.1%)
NA
36.3
82%
5,408
4,884
1.58x
1.46x
1.33x
8.5x
8.5x
7.5x
18.9x
16.0x
10.1%
37.6%
18.6%
1.2x
Median
0.65x
0.64x
0.66x
6.1x
6.6x
5.8x
17.9x
14.8x
4.0%
43.9%
12.3%
1.3x
Average
0.90x
0.87x
0.90x
6.2x
7.1x
6.0x
16.8x
14.0x
6.2%
44.6%
10.2%
1.4x
Urban Outfitters Inc.
Global Apparel and Lifestyle Accessories Report
Comparable Company Analysis 11
William Blair
News Review
9/15/2014
The Neiman Marcus Group has agreed to buy Mytheresa.com, the Munich-based luxury fashion e-tailer, from founders and minority
investor Acton Capital Partners.
8/20/2014
TOMS Shoes Inc. has announced the signing of a definitive agreement to partner with Bain Capital, to accelerate the growth of the
company and its giving programs around the world. TOMS Founder and Chief Shoe Giver Blake Mycoskie will continue as visionary
of the company and remain 50% owner of TOMS.
8/10/2014
A stake in Achica, the UK-based "flash" sales website, has been acquired by Lansdowne Partners, The Sunday Telegraph reported.
The report said Companies House filings revealed the fund manager's acquisition of an equity stake; it did not specify how much
Lansdowne paid or the size of its holding.
7/31/2014
Catterton Partners announced it has agreed to acquire Hong Kong-based designer jeweler John Hardy Limited in a management
buyout transaction from 3i Group for an estimated minimum of USD 100m.
7/30/2014
Kering and Ulysse Nardin have signed an agreement for Kering to acquire 100% of the capital of Ulysse Nardin. The deal value was
not disclosed. The brand will join Kering's Luxury - Watches and Jewellery' division, headed by Albert Bensoussan, and the
management team will remain in place. The deal should be finalised during the second half of 2014.
5/20/2014
The Mondadori Group is accelerating the development of the "Grazia International Network", which entered the e-commerce
fashion market through the acquisition of London-Boutiques.com. The London-based marketplace offers readers and users the
possibility of selecting a wide range of clothing and accessories of some of the British capital's best boutiques.
5/1/2014
Farfetch, the global ecommerce site for independent boutiques, has raised USD 66 million in a Series D round of investment led by
London-based private equity firm Vitruvian Partners. Farfetch has sales of USD 275 million and year-on-year growth of 100%.
4/13/2014
Sycamore Partners announced that Kurt Geiger, a leading European luxury branded shoe retailer, has completed a management-led
buyout and is now operating as an independent company. Sycamore Partners supported Kurt Geiger's management team in its
acquisition of the business, which previously was a division of the Jones Group Inc.
4/9/2014
PVH Corp. announced that it has become a minority shareholder in the parent company of the Karl Lagerfeld brand.
4/9/2014
L Capital Management and L Capital Asia, two private equity companies sponsored by the Louis Vuitton Moet Hennessy Group
(LVMH), have acquired a 30% stake of Vicini S.p.A., owner of the Giuseppe Zanotti Design brand. On a strategic standpoint, this new
partnership comes from the willingness of Giuseppe Zanotti, Vicini’s Chairman and Chief Designer, to create the ideal conditions to
foster the company’s future growth in the increasingly competitive global markets.
4/8/2014
Bree, the German handbag maker, has been acquired by a group of investors, Sueddeutsche Zeitung reported. The German-language
daily cited the company as saying that Philipp Bree, a son of the company founder, sold his 50% stake, while his brother Axel Bree
also sold a small stake. The report said majority ownership of Bree now lies in the hands of investors led by two retail experts:
Peter Wolf and Klaus Schmidt. Bree's annual turnover is about EUR 50m, according to the article.
3/29/2014
Better Capital, has invested an additional GBP 7.5m in its Jaeger fashion retail business.
3/28/2014
IC Company has entered into an agreement to sell its Mid Market division comprising of the four brands InWear, Matinique, Part
Two and Soaked in Luxury as well as the store concept COMPANYS to DK Company, according to a company press release. In the
future IC Company will focus on the Premium segment in which the Company has realized strong growth and solid earnings for the
past few years.
3/24/2014
Steven Madden Ltd. and footwear designer Brian Atwood have acquired Atwood's brand for an undisclosed sum, Women's Wear
Daily reported.
3/17/2014
Labelux, an Austrian fashion company, has reportedly sounded out investment banks regarding a potential flotation of a minority
shareholding in its Jimmy Choo shoes business. Early estimates indicate that Jimmy Choo could have a flotation value of about GBP
1bn (EUR 1.19bn), the item said, noting that Labelux paid GBP 525m for the company in 2011.
3/11/2014
Betty Blue Spa, a private Italian fashion company that owns the Elisabetta Franchi and Betty Blue brands, aims to list a 30% to 40%
share on the Milan Bourse between 2017 and 2018, Giacinto D’Onofrio, a partner at Betty Blue’s sponsor Trilantic Capital Partners
said.
3/7/2014
Etro, the Italian fashion house, has denied that it is up for sale, MF Fashion reported. The report cited a press release denying sale
rumours.
3/3/2014
Iconix Brand Group, Inc. , today announced that it has acquired the remaining 50% of Iconix Latin America from its joint venture
partner, New Brands Group, S.A., for USD 42m.
3/2/2014
Oakley Capital has acquired a majority interest in North Technology Group, the "North Sails" sailing brand.
Global Apparel and Lifestyle Accessories Report
12 News Review
William Blair
IPO Backlog
2014YTD IPOs by Primary Sector
Current IPO Backlog by Primary Sector
Europe
4%
1%
Consumer
Consumer
20%
Business Services
39%
40%
6% 6%
Financial
2%
Financial
Healthcare
Healthcare
Industrial
Industrial
Technology
5%
Business Services
35%
4%
Technology
38%
U.S.
6%
Consumer
21%
18%
12%
Business Services
Consumer
4%
Financial
5%
27%
18%
Financial
13%
Healthcare
Industrial
Business Services
Healthcare
Industrial
53%
11%
Technology
Technology
11%
Asia
Consumer
17%
33%
8%
Business Services
4%
8%
Healthcare
5%
1%
7%
Business Services
Financial
Healthcare
Industrial
Technology
Consumer
7%
Financial
37%
7%
Industrial
66%
Technology
Global Apparel and Lifestyle Accessories Report
IPO Backlog 13
William Blair
Equity Research Team
Amy Noblin
+1 415 248 2874
Apparel and Accessories
Abercrombie & Fitch Co. (ANF)
Michael Kors Holdings Limited (KORS)
Vera Bradley, Inc. (VRA)
Coach, Inc. (COH)
Nordstrom, Inc. (JWN)
Vince Holding Corp. (VNCE)
DSW Inc. (DSW)
Tiffany & Co. (TIF)
Francesca’s Holdings Corporation (FRAN)
Tumi Holdings, Inc. (TUMI)
Sharon Zackfia, CFA
Group Head–Consumer
+1 312 364 5386
Apparel and Accessories, Leisure, Restaurants
BJ’s Restaurants, Inc. (BJRI)
Harley-Davidson, Inc. (HOG)
Starbucks Corporation (SBUX)
Bloomin’ Brands, Inc. (BLMN)
Life Time Fitness, Inc. (LTM)
Tilly’s, Inc. (TLYS)
CarMax, Inc. (KMX)
lululemon athletica inc. (LULU)
Tumi Holdings, Inc. (TUMI)
Carnival Corporation (CCL)
Panera Bread Company (PNRA)
Under Armour, Inc. (UA)
The Cheesecake Factory Incorporated (CAKE)
Potbelly Corporation (PBPB)
Urban Outfitters, Inc. (URBN)
Chipotle Mexican Grill, Inc. (CMG)
Royal Caribbean Cruises Ltd. (RCL)
Zumiez Inc. (ZUMZ)
Dunkin’ Brands Group, Inc. (DNKN)
Sonic Corp. (SONC)
Mark Miller, CFA
+1 312 364 8498
Broad Assortment and Hardlines, E-commerce, Health and Beauty
Amazon.com, Inc. (AMZN)
The Fresh Market, Inc. (TFM)
Vitamin Shoppe, Inc. (VSI)
Blue Nile, Inc. (NILE)
GNC Holdings Inc. (GNC)
Walgreen Co. (WAG)
Cabela’s Incorporated (CAB)
Mattress Firm Holding Corp. (MFRM)
Wal-Mart Stores, Inc. (WMT)
Costco Wholesale Corporation (COST)
MercadoLibre, Inc. (MELI)
Whole Foods Market, Inc. (WFM)
CVS Caremark Corporation (CVS)
Natural Grocers by Vitamin Cottage, Inc. (NGVC) zulily, inc. (ZU)
Dick’s Sporting Goods, Inc. (DKS)
Target Corporation (TGT)
Fairway Group Holdings Corp. (FWM)
Tractor Supply Company (TSCO)
Daniel Hofkin
+1 312 364 8965
Hardlines, Specialty Retail
Bed Bath & Beyond Inc. (BBBY)
Regis Corporation (RGS)
The TJX Companies, Inc. (TJX)
Luxottica Group S.p.A. (LUX)
Restoration Hardware Holdings, Inc. (RH)
Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA)
O’Reilly Automotive, Inc. (ORLY)
Ross Stores, Inc. (ROST)
Williams-Sonoma, Inc. (WSM)
PetSmart, Inc. (PETM)
Steiner Leisure Limited (STNR)
Jon Andersen, CFA
+1 312 364 8697
Consumer Products
Annie’s, Inc. (BNNY)
The J.M. Smucker Company (SJM)
The Procter & Gamble Company (PG)
AptarGroup, Inc. (ATR)
Jarden Corporation (JAH)
The Scotts Miracle-Gro Company (SMG)
Boulder Brands, Inc. (BDBD)
Kellogg Company (K)
SodaStream International Ltd. (SODA)
Church & Dwight Co., Inc. (CHD)
Keurig Green Mountain (GMCR)
Tempur-Pedic International Inc. (TPX)
Colgate-Palmolive Company (CL)
Mead Johnson Nutrition Company (MJN)
TreeHouse Foods, Inc. (THS)
Fox Factory Holding Corporation (FOXF)
Perrigo Company (PRGO)
J&J Snack Foods Corp. (JJSF)
Prestige Brands Holdings, Inc. (PBH)
Global Apparel and Lifestyle Accessories Report
14 Equity Research Team
William Blair
Notes
Global Apparel and Lifestyle Accessories Report
Notes 15
William Blair
Disclosures
“William Blair” is a trade name for William Blair & Company, L.L.C., William Blair Investment Management, LLC and William Blair International, Ltd. William Blair & Company, L.L.C. and William Blair
Investment Management, LLC are each a Delaware company and regulated by the Securities and Exchange Commission. William Blair & Company, L.L.C. is also regulated by The Financial Industry
Regulatory Authority and other principal exchanges. William Blair International, Ltd is authorized and regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom. William Blair only
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This material has been approved for distribution in the United Kingdom by William Blair International, Ltd. Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made
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William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com
August 18, 2014
Global Apparel and Lifestyle Accessories Report
16 Disclosures