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MARKET UPDATE l Soft Goods
Q1 2015
The newsletter for the Consumer Soft Goods sector
140%
+36.5%
130%
+23.8%
120%
+16.8%
110%
+9.7%
100%
+0.6%
-0.9%
90%
-9.2%
80%
Apr-14
Jul-14
Market Trends
Source: S&P Capital IQ, Industry Research Reports
Market Intelligence
8.0x
12.1x
12.1x
13.7x
15.4x
11.6x
11.5x
12.0x
11.5x
10.8x
10.0x
11.4x
11.1x
8.7x
8.2x
9.4x
9.4x
10.8x
10.4x
11.5x
11.5x
10.0x
6.0x
Q1 '15
Q4 '14
Q3 '14
Q2 '14
Q1 '15
Q4 '14
Q3 '14
Q2 '14
Q1 '15
Q4 '14
Q3 '14
Q2 '14
Q1 '15
Q4 '14
0.0x
Q3 '14
2.0x
Q2 '14
4.0x
Q1 '15
continued on its upward trajectory due (in
part) to sustained discretionary consumer
shopping and spending patterns across
North America and strong organic sales
growth in key emerging markets
12.0x
Q4 '14
 The Other Accessories segment has
14.0x
Q3 '14
index upturn is driven by the LVMH’s
weighted stock price performance which has
benefited from both strong sales in China
and a shift to high margin products
16.0x
Q2 '14
 Lincoln’s Bags and Luggage stock price
Other Accessories
Bags and Luggage
18.0x
13.1x
13.0x
13.9x
13.5x
improved outlook on cotton prices but was
partially offset by foreign exchange pressure
and a weaker macro environment,
particularly in Europe
Jan-15
Small Cap Apparel
Home Décor
Historical Enterprise Value / EBITDA Valuation Performance(1)
Q2 '14
 The Apparel segment has benefited from an
Oct-14
Mid and Large Cap Apparel
Retail
S&P 500
Q1 '15
Lincoln International’s annual Consumer
Conference will take place on May 14th, 2015 at
Hotel Nikko in San Francisco. Leaders within
direct-to-consumer and social media, including
Andy Dunn, CEO of Bonobos, and Randi
Zuckerberg, best selling author, founder and
CEO of Zuckerberg Media and former Head of
Marketing at Facebook, will present at the event.
Presentations will also feature 36 consumer
products companies.
LTM Relative Stock Price Performance
Q4 '14
Lincoln’s 2015 Consumer Conference
Lincoln International Consumer Soft Goods Index
Q3 '14
Soft Goods Group Update
Mid and Large Cap Small Cap Apparel
Retail
Home Décor
Bags and Luggage Other Accessories
Apparel
Note: (1) Based on quarterly average values; previous Lincoln market updates based on quarterly median values
M&A Transaction Recap
Announced
Target
Target
Date
Company
Description
Acquiring
Company
31-Mar-15
The J. Jill Group, Inc.
Retails w omen's apparel, accessories and footw ear
Tow erBrook Capital Partners L.P.
 Implus Corporation, a leading provider of
23-Mar-15
Louisv ille Slugger
Manufactures baseball bats and accessories
Wilson Sporting Goods Co. (Amer Sports)
consumer products, has been acquired by
Berkshire Partners for $600m
20-Mar-15
Alliance Apparel Group Inc.
Manufactures apparel
Eminent, Inc.
 Coach has signed a definitive agreement to
acquire Stuart Weitzman Holdings from
private equity firm Sycamore Partners
 Adidas has agreed to sell Rockport to
Berkshire Partners and New Balance for
$280m
 J. Jill, a leading multi-channel fashion
retailer of women's apparel, accessories
and footwear, has been acquired by
Towerbrook Capital Partners
Source: Mergermarket, Bloomberg and Reuters
Q1 2015
www.lincolninternational.com
9-Mar-15
LogoSportsw ear, Inc.
Retails customized uniforms and apparel
Gladstone Inv estment; Digital Fuel Capital
26-Feb-15
GoRun Wichita, LLC
Retails running footw ear and apparel
Fleet Feet Sports
24-Feb-15
Knights Apparel Inc.
Supplies sports and collegiate apparel
Hanesbrands Inc.
3-Feb-15
L'Amour Des Pieds
Manufactures shoes for w omen
Remac, L.P.
28-Jan-15
Blondo Inc.
Designs and manufactures footw ear
Stev en Madden, Ltd.
27-Jan-15
Boston Boot Company LLC
Manufactures shoes for men
Shoebuy .com, Inc.
23-Jan-15
The Rockport Company , LLC
Manufactures footw ear and accessories
Berkshire Partners; New Balance Athletic
16-Jan-15
Designer Apparel Group, LLC
Manufactures priv ate label and branded apparel
Global Fashion Technologies, Inc.
6-Jan-15
Stuart Weitzman Holdings LLC
Designs and manufactures w omen's lux ury footw ear Coach, Inc.
6-Jan-15
Anthony Enterprises, Inc.
Designs and manufactures neckw ear
Wolfmark Neckw ear, Inc.
5-Jan-15
Rey n Spooner Inc.
Designs and retails apparel and accessories
Aloha Brands LLC
Consumer Soft Goods D E A L R E A D E R
Lincoln International
1
Lincoln International Consumer Soft Goods Index (Continued)
Selected Consumer Soft Goods Public Comparables
Stock
Price
Company Name
Mid and Large Cap Apparel
Adidas AG
Hanesbrands Inc.
Nike, Inc.
PVH Corp.
Ralph Lauren Corporation
Under Armour, Inc.
V.F. Corporation
Small Cap Apparel
Columbia Sportswear Company
Deckers Outdoor Corp.
G-III Apparel Group, Ltd.
Oxford Industries Inc.
Perry Ellis International Inc.
Rocky Brands, Inc.
Wolverine World Wide Inc.
Zumiez, Inc.
Retail
Abercrombie & Fitch Co.
American Eagle Outfitters, Inc.
Bed Bath & Beyond Inc.
Express Inc.
Francesca's Holdings Corporation
The Gap, Inc.
Kirkland's Inc.
L Brands, Inc.
Pier 1 Imports, Inc.
Restoration Hardware Holdings, Inc.
Tuesday Morning Corporation
Urban Outfitters Inc.
Williams-Sonoma Inc.
Home Décor
Dorel Industries Inc.
Ethan Allen Interiors Inc.
La-Z-Boy Incorporated
Leggett & Platt, Incorporated
Ralph Lauren Corporation
Select Comfort Corporation
Tempur Sealy International Inc.
Bags and Luggage
Coach, Inc.
LVMH Moët Hennessy Louis Vuitton SA
Samsonite International S.A.
Tumi Holdings, Inc.
Vera Bradley, Inc.
VIP Industries Limited
Other Accessories
Columbia Sportswear Company
Jarden Corp.
Newell Rubbermaid Inc.
% of
52-week High
Market
Cap
Enterprise
Value
LTM
Revenue
EBITDA
YoY Revenue
Growth
EBITDA
Margin
EV / LTM
Revenue
EBITDA
$
79.40
33.51
100.33
106.56
131.50
80.75
75.31
93%
96%
97%
80%
70%
98%
97%
$
16,224 $
13,431
86,679
8,786
11,482
17,399
32,044
16,356 $
15,175
82,569
11,853
10,751
17,090
32,521
17,592 $
5,474
30,247
8,241
7,602
3,248
12,282
1,485
886
4,796
953
1,360
437
2,109
(10% )
15%
12%
6%
8%
30%
8%
8%
16%
16%
12%
18%
13%
17%
0.9x
2.8x
2.7x
1.4x
1.4x
5.3x
2.6x
11.0x
17.1x
17.2x
12.4x
7.9x
nmf
15.4x
$
60.90
72.87
112.65
75.45
23.16
21.60
33.45
40.25
98%
73%
98%
96%
86%
93%
99%
96%
$
4,257 $
2,519
2,533
1,243
359
163
3,448
1,184
3,844 $
2,188
2,405
1,347
478
195
4,130
1,034
2,101 $
1,588
2,117
998
890
286
2,761
812
256
249
185
122
35
24
325
107
25%
11%
23%
11%
(7% )
11%
3%
12%
12%
16%
9%
12%
4%
8%
12%
13%
1.8x
1.4x
1.1x
1.3x
0.5x
0.7x
1.5x
1.3x
15.0x
8.8x
13.0x
11.1x
13.7x
8.2x
12.7x
9.6x
$
22.04
17.08
76.78
16.53
17.80
43.33
23.75
94.29
13.98
99.19
16.10
45.65
79.71
48%
98%
96%
94%
89%
92%
89%
99%
72%
97%
70%
97%
94%
$
1,533 $
3,331
14,250
1,393
753
18,145
407
27,570
1,258
3,957
705
5,957
7,325
1,356 $
2,920
14,571
1,318
714
17,983
308
30,655
1,444
4,182
651
5,699
7,104
3,744 $
3,283
11,881
2,165
377
16,435
508
11,454
1,866
1,867
899
3,323
4,699
410
349
1,793
222
71
2,635
48
2,391
182
208
21
497
657
(13% )
(3% )
2%
(3% )
13%
1%
9%
6%
3%
26%
6%
8%
9%
11%
11%
15%
10%
19%
16%
9%
21%
10%
11%
2%
15%
14%
0.4x
0.9x
1.2x
0.6x
1.9x
1.1x
0.6x
2.7x
0.8x
2.2x
0.7x
1.7x
1.5x
3.3x
8.4x
8.1x
5.9x
10.1x
6.8x
6.5x
12.8x
8.0x
20.1x
nmf
11.5x
10.8x
$
27.78
27.64
28.11
46.09
131.50
34.47
57.74
83%
85%
99%
98%
70%
99%
93%
$
902 $
800
1,439
6,361
11,482
1,816
3,520
1,391 $
810
1,330
7,005
10,751
1,694
5,072
2,678 $
760
1,403
3,782
7,602
1,230
2,990
167
90
122
431
1,360
161
344
10%
4%
6%
9%
8%
26%
21%
6%
12%
9%
11%
18%
13%
12%
0.5x
1.1x
0.9x
1.9x
1.4x
1.4x
1.7x
8.3x
9.0x
10.9x
16.3x
7.9x
10.5x
14.7x
$
41.43
176.34
3.48
24.46
16.23
1.49
81%
94%
96%
99%
54%
72%
$
11,428 $
88,493
4,895
1,660
647
211
10,383 $
95,052
4,858
1,607
534
211
4,494 $
37,085
2,351
527
509
163
1,140
8,394
365
112
83
14
(11% )
(7% )
15%
13%
(5% )
5%
25%
23%
16%
21%
16%
9%
2.3x
2.6x
2.1x
3.0x
1.0x
1.3x
9.1x
11.3x
13.3x
14.4x
6.5x
14.6x
$
60.90
52.90
39.07
98%
97%
97%
$
4,257 $
10,186
10,490
3,844 $
14,080
12,788
2,101 $
8,287
5,727
256
805
924
25%
10%
2%
12%
10%
16%
1.8x
1.7x
2.2x
15.0x
17.5x
13.8x
Source: Bloomberg, Capital IQ and company filings, as of 3/31/2015
About Lincoln International
Officer Contacts
Chris Stradling
Managing Director
[email protected]
+1-312-580-8325
Contributors
Mark Jones-Pritchard
Vice President
[email protected]
+1-312-506-2724
Alberto Sinesi
Associate
[email protected]
Tyler Shankel
Analyst
[email protected]
Lincoln International specializes in merger and acquisition advisory services, debt
advisory services, private capital raising and restructuring advice on mid-market
transactions. Lincoln International also provides fairness opinions, valuations and
pension advisory services on a wide range of transaction sizes. With sixteen offices
in the Americas, Asia and Europe, Lincoln International has strong local knowledge
and contacts in key global economies. The firm provides clients with senior-level
attention, in-depth industry expertise and integrated resources. By being focused
and independent, Lincoln International serves its clients without conflicts of interest.
More information about Lincoln International can be obtained at
www.lincolninternational.com
Q1 2015
www.lincolninternational.com
Consumer Soft Goods D E A L R E A D E R
Lincoln International
2