Apparel, Accessories & Footwear
Market Monitor
Spring 2016
MOSS ADAMS CAPITAL LLC
. Select MAC Apparel, Accessories & Footwear Transactions
Apparel, Accessories & Footwear
2
MOSS ADAMS CAPITAL LLC
. Contents
Industry Update
4
Public Share Price Performance & Valuations
5
M&A Activity & Valuations
9
Moss Adams Overview
13
Apparel, Accessories & Footwear
3
MOSS ADAMS CAPITAL LLC
. Shifting Consumer Preferences Create Retail Headwinds
Consumer Spending Indicators
Industry Update
•
•
Improving job markets, rising wages, cheaper fuel and increasing
home values are giving the U.S. consumer more confidence.
However, soft goods continue to stumble as consumer
preferences shift away from the category.
Consumer spending continues to shift toward services, experiences
and improvements, such as housing upgrades, travel, auto,
restaurants and leisure, which have all experienced an increase in
sales. Furthermore, consumers are focusing on value-based
offerings, which means their spending favors retailers that either
offer deep value, something new or provide a unique experience.
•
Despite uncertain economic conditions and the headwinds
discussed above, the National Retail Federation believes the
strong labor market and U.S. economy will help retail sales
increase by 3.1% this year, while non-store sales are expected
to jump between 6.0%-9.0% in 2016.
•
2015 U.S.
Apparel, Accessories and Footwear (“AAF”) M&A activity
finished 9.8% above the 2014 record (slide 12).
•
12%
10%
8%
6%
4%
2%
0%
(2%)
(4%)
(6%)
(8%)
(10%)
(12%)
Select public AAF companies have lost approximately 12% of value
on a EV/EBITDA multiple basis from the highs reached in July 2015
(slide 8).
•
•
Unemployment
Rate (left-axis)
120
100
80
60
Payroll y/y
growth (left-axis)
Consumer
Confidence
(right-axis)
40
20
Apparel Retailer
Sales y/y Growth
(left-axis)
0
Same-Store Sales Growth – Select Chain Retailers
Q4'13
Abercrombie & Fitch
Aeropostale
Q1'14
Q2'14
Q3'14
(8.0%)
(4.0%)
(7.0%) (10.0%) (10.0%)
(15.0%) (13.0%) (13.0%) (11.0%)
Q4'14
Q1'15
Q2'15
Q3'15
(8.0%)
(4.0%)
(1.0%)
(9.0%) (11.0%)
(8.0%) (10.0%)
Q4'15
1.0%
NA
American Eagle
(7.0%) (10.0%)
(7.0%)
(5.0%)
0.0%
7.0%
11.0%
9.0%
4.0%
Buckle
(7.2%)
(2.8%)
(0.9%)
(0.5%)
0.3%
1.1%
(2.2%)
(1.7%)
(5.2%)
DSW
0.0%
(3.7%)
0.8%
2.6%
7.6%
5.1%
1.8%
(3.9%)
NA
Gap
AAF companies continue to look for new brands to assist their
sluggish portfolios and will pay strong valuations for growing
companies.
1.0%
(1.0%)
0.0%
(2.0%)
(2.0%)
(4.0%)
(2.0%)
(3.0%)
(7.0%)
Genesco
1.0%
2.0%
3.0%
10.0%
4.0%
7.0%
7.0%
5.0%
(4.4%)
(3.8%)
(5.4%)
(4.8%)
(5.0%)
(5.9%)
(2.8%)
(5.7%)
NA
Tilly's
Key industry trends supporting growth and valuations include (i)
ability to become a lifestyle brand, (ii) omni-channel retailing, (iii)
international growth, (iv) consumer focus on active/healthy
lifestyles, (v) strong margins.
1.0%
Guess? North America
(4.9%)
(6.8%)
(7.1%)
(1.2%)
2.9%
2.0%
0.5%
3.9%
NA
1.0%
0.0%
0.0%
(1.0%)
6.0%
4.0%
4.0%
0.7%
(2.0%)
(2.2%)
1.8%
3.4%
3.7%
8.3%
3.0%
(4.5%)
(7.3%)
NA
Urban Outfitters
Zumiez
Median
(2.9%)
(3.8%)
(3.0%)
(1.6%)
0.6%
(0.1%)
(1.9%)
(3.0%)
(0.5%)
Source: U.S. Department of Commerce, National Retail Federation, CapitalIQ, Bloomberg & Moss Adams Capital estimates.
Apparel, Accessories & Footwear
4
MOSS ADAMS CAPITAL LLC
. Public Company Valuations
($U.S. in millions, except per share amounts)
Company Name
TTM Data
3/3/16
Share
Price
52 Week
High - Low
Market
Cap
Enterprise
Value
Sales
EBITDA
NTM Est. Growth
EBITDA
Margin
Sales
EBITDA
EV Multiple
TTM
Sales
TTM
EBITDA
NTM
Sales
NTM
EBITDA
Performance
NIKE, Inc.
$61.47
$68.20 - $47.25
$104,693
$100,753
$31,339
$5,059
16.1%
9.4%
12.6%
3.21x
19.9x
2.94x
17.7x
Adidas AG
106.91
111.18 - 68.70
21,404
21,485
18,371
1,614
8.8%
9.1%
10.0%
1.17x
13.3x
1.07x
12.1x
Under Armour, Inc.
83.09
105.89 - 63.23
17,956
18,496
3,963
516
13.0%
25.5%
23.8%
4.67x
35.9x
3.72x
29.0x
Lululemon Athletica Inc.
61.78
70.00 - 43.14
8,483
8,079
1,959
423
21.6%
13.7%
9.7%
4.12x
19.1x
3.63x
17.4x
Columbia Sportswear Company
59.76
74.72 - 43.56
4,142
3,804
2,326
310
13.3%
5.8%
4.8%
1.64x
12.3x
1.55x
11.7x
214.95
237.53 - 153.25
3,211
2,836
3,679
166
4.5%
8.5%
21.7%
0.77x
17.1x
0.71x
14.0x
Median
$13,288
$3,821
$469
13.2%
9.2%
11.3%
2.43x
18.1x
2.24x
15.7x
Average
$25,909
$10,273
$1,348
12.9%
12.0%
13.8%
2.60x
19.6x
2.27x
17.0x
PUMA SE
Aspirational
Coach, Inc.
$38.79
$43.45 - $27.22
$10,772
$10,322
$4,238
$932
22.0%
8.4%
10.3%
2.44x
11.1x
2.25x
10.0x
Michael Kors Holdings Limited
57.19
68.82 - 34.83
10,260
9,572
4,594
1,359
29.6%
5.3%
(0.6%)
2.08x
7.0x
1.98x
7.1x
Ralph Lauren Corporation
95.77
141.08 - 82.15
8,046
7,731
7,419
1,141
15.4%
(2.7%)
(7.8%)
1.04x
6.8x
1.07x
7.3x
Kate Spade & Company
23.07
35.26 - 15.10
2,955
3,059
1,243
204
16.4%
12.6%
28.7%
2.46x
15.0x
2.19x
11.7x
6.45
22.33 - 3.31
237
312
315
42
13.3%
(7.3%)
(48.7%)
0.99x
7.4x
1.07x
14.5x
Vince Holding Corp
Median
$7,731
$4,238
$932
16.4%
5.3%
(0.6%)
2.08x
7.4x
1.98x
10.0x
Average
$6,199
$3,562
$736
19.3%
3.3%
(3.6%)
1.80x
9.5x
1.71x
10.1x
Casual Fashion
The Gap, Inc.
$28.54
$43.90 - $21.57
$11,330
$11,691
$15,797
$2,051
13.0%
(0.7%)
(0.1%)
0.74x
5.7x
0.75x
5.7x
Urban Outfitters Inc.
27.43
47.25 - 19.26
3,218
3,114
3,443
496
14.4%
3.1%
1.1%
0.90x
6.3x
0.88x
6.2x
American Eagle Outfitters, Inc.
15.00
18.49 - 12.78
2,920
2,659
3,522
466
13.2%
3.3%
10.0%
0.76x
5.7x
0.73x
5.2x
DSW Inc.
26.24
39.58 - 21.23
2,273
2,183
2,588
317
12.2%
2.9%
(10.1%)
0.84x
6.9x
0.82x
7.7x
Abercrombie & Fitch Co.
31.14
31.45 - 15.42
2,097
1,847
3,519
303
8.6%
(0.0%)
15.7%
0.52x
6.1x
0.53x
5.3x
Guess? Inc.
22.26
23.45 - 16.61
1,865
1,486
2,243
219
9.7%
(3.3%)
(9.3%)
0.66x
6.8x
0.69x
7.5x
Median
$2,421
$3,481
$391
12.6%
1.4%
0.5%
0.75x
6.2x
0.74x
6.0x
Average
$3,830
$5,185
$642
11.9%
0.9%
1.2%
0.74x
6.2x
0.73x
6.3x
Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x. NA if denominator is 0, for percentages and multiples, or if estimates are not available.
NTM figures are based on the
median estimate of Wall St. analysts.
Source: CapitalIQ, company filings.
Apparel, Accessories & Footwear
5
MOSS ADAMS CAPITAL LLC
. Public Company Valuations
($U.S. in millions, except per share amounts)
Company Name
TTM Data
3/3/16
Share
Price
52 Week
High - Low
Market
Cap
Enterprise
Value
Sales
EBITDA
NTM Est. Growth
EBITDA
Margin
Sales
EBITDA
EV Multiple
TTM
Sales
TTM
EBITDA
NTM
Sales
NTM
EBITDA
Diversified - Large Cap
V.F. Corporation
$66.33
$77.40 - $52.21
$28,155
$29,075
$12,377
$2,077
16.8%
4.7%
3.9%
2.35x
14.0x
2.24x
13.5x
PVH Corp.
85.45
120.67 - 64.16
7,002
10,000
7,977
947
11.9%
1.1%
9.2%
1.25x
10.6x
1.24x
9.7x
Skechers U.S.A., Inc.
33.78
54.53 - 21.63
5,281
4,906
3,159
404
12.8%
18.3%
30.8%
1.55x
12.1x
1.31x
9.3x
G-III Apparel Group, Ltd.
54.70
73.93 - 39.50
2,491
2,608
2,331
232
10.0%
9.5%
7.5%
1.12x
11.2x
1.02x
10.4x
Steven Madden, Ltd.
35.37
44.73 - 27.80
2,186
2,081
1,405
195
13.9%
3.2%
0.4%
1.48x
10.6x
1.44x
10.6x
Wolverine World Wide Inc.
19.98
35.20 - 14.74
1,996
2,622
2,692
287
10.7%
(6.1%)
(6.9%)
0.97x
9.1x
1.04x
9.8x
Deckers Outdoor Corp.
57.83
78.00 - 40.74
1,875
1,669
1,837
241
13.1%
1.9%
5.9%
0.91x
6.9x
0.89x
6.5x
Oxford Industries Inc.
77.42
91.24 - 51.13
1,284
1,346
1,036
123
11.9%
(1.5%)
13.7%
1.30x
11.0x
1.32x
9.6x
Median
$2,615
$2,511
$264
12.3%
2.6%
6.7%
1.28x
10.8x
1.28x
9.7x
Average
$6,788
$4,102
$563
12.6%
3.9%
8.1%
1.37x
10.7x
1.31x
9.9x
Diversified - Mid/Small Cap
Crocs, Inc.
$10.03
16.05 - 8.09
$732
$771
$1,091
-$3
NA
4.2%
NM
0.71x
NA
0.68x
11.2x
8.41
37.29 - 4.67
407
1,893
374
180
48.2%
1.3%
(8.0%)
5.06x
10.5x
5.00x
11.4x
Perry Ellis International Inc.
19.85
28.19 - 15.73
313
409
903
44
4.9%
4.0%
40.3%
0.45x
9.3x
0.44x
6.6x
Weyco Group Inc.
26.46
31.01 - 22.94
286
296
321
34
10.5%
NA
NA
0.92x
8.8x
NA
NA
0.99
2.83 - 0.94
196
303
798
44
5.5%
6.1%
21.0%
0.38x
6.9x
0.36x
5.7x
12.54
23.11 - 9.67
95
115
269
18
6.6%
7.2%
11.6%
0.43x
6.5x
0.40x
5.9x
Median
$356
$586
$39
6.6%
4.2%
16.3%
0.58x
8.8x
0.44x
6.6x
Average
$631
$626
$53
15.1%
4.6%
16.2%
1.33x
8.4x
1.37x
8.1x
Iconix Brand Group, Inc.
Billabong International Limited
Rocky Brands, Inc.
Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x.
NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the
median estimate of Wall St. analysts.
Source: CapitalIQ, company filings.
Apparel, Accessories & Footwear
6
MOSS ADAMS CAPITAL LLC
.
Performance Apparel Success Indicative of Consumer Preferences
One Year Share Price Performance: Apparel, Accessories & Footwear vs. S&P 500
40.0%
30.0%
Performance 22.6%
20.0%
10.0%
S&P 500 (5.0%)
0.0%
Diversified - Large
Cap - (9.8%)
(10.0)%
Aspirational (19.9%)
(20.0)%
(30.0)%
Casual Fashion (22.4%)
(40.0)%
Diversified Mid/Small Cap (49.5%)
(50.0)%
(60.0)%
Mar-16
Feb-16
Jan-16
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
(70.0)%
Note: The indices in the chart above are composed of the public companies included on slide 5 & 6.
Source: CapitalIQ.
Apparel, Accessories & Footwear
7
MOSS ADAMS CAPITAL LLC
. “Casual Fashion” Struggles Decrease Broader AAF Valuations
•
3.9% sales and 8.1% EBITDA growth projected for select
apparel companies (slide 5 & 6) over the next 12 months.
•
•
S&P 500 companies are projecting sales and EBITDA
growth of 2.9% and 9.2%, respectively, over the next 12
months.
Public AAF companies’ multiples have been decreasing,
primarily caused by sluggish sales growth, industry
bankruptcies and economic uncertainty.
•
Over the past six months, AAF companies have lost
approximately 12% of their value on an EV/EBITDA
multiple basis (decrease mainly caused by depressed
Diversified – Small Cap performance).
Next 12 Months: Estimated Growth
Sales
Public Market Valuations
S&P 500 - 10.1x
EBITDA
AAF Companies 11.4x
14.0x
Diversified Mid/Small Cap
Casual Fashion
Aspirational
4.2%
13.0x
12.0x
6.7%
2.6%
EV/EBITDA Multiple
Diversified Large Cap
16.3%
0.5%
1.4%
(0.6%)
5.3%
Performance
9.2%
11.0x
10.0x
9.0x
8.0x
7.0x
6.0x
11.3%
5.0x
Mar-16
Sep-15
Mar-15
Sep-14
Mar-14
Sep-13
Mar-13
Sep-12
Mar-12
4.0x
9.2%
Sep-11
2.9%
Mar-11
S&P 500
Note: Apparel, Accessories & Footwear is composed of the public companies included on slide 5 & 6.
Source: CapitalIQ.
Apparel, Accessories & Footwear
8
MOSS ADAMS CAPITAL LLC
. Middle Market M&A Volume Down in Q4 2015; Multiples Up
ï‚§ Overall, 2015 was a record year for M&A with transaction values
totaling $4.7 trillion, according to Thomson Reuters
ï‚§ EBITDA multiples in middle market transactions in Q4 2015
finished the quarter at 8.3x EBITDA, equal to the 5 year average
for this metric and up from Q2 and Q3 2015
ï‚§ However, in Q4 2015, U.S. middle market M&A deal volumes
declined 15% from Q3 2015, and declined 26% from Q4 2015
ï‚§ Q4 2015 EBITDA margins of reportable transactions increased
modestly but remained consistent with the 5 year average --Reported EBTIDA margins in Q4 2015 were 9%, while the 5 year
average is 8%
ï‚§ U.S. middle market M&A activity in 2014 2015, measured by deal
values, remained consistent with prior quarters at $94 billion
U.S. MIDDLE MARKET M&A 1
U.S.
MIDDLE MARKET M&A VALUATIONS 2
1) Middle market M&A includes transactions with undisclosed values, and disclosed values where EV < $500 million.
2) Middle market M&A includes transactions with disclosed EBITDA, where EV < $500 million and EV/EBITDA between 3.0x and 15.0x. Note: transactions with disclosed EBITDA represent <5% of all transactions.
Source: CapitalIQ.
Apparel, Accessories & Footwear
9
MOSS ADAMS CAPITAL LLC
. Select, Notable M&A Activity with Disclosed Values
$ in millions
Close
Date
Acquirer/Investor
Target
Target Description
Transaction
Value
Feb-16
Rainbow USA Inc.
Joyce Leslie, Inc., 19 Joyce Leslie Stores Leases
Acquired leases of Joyce Leslie, a clothing boutique
Feb-16
DSW Shoe Warehouse, Inc.
Ebuys, Inc.
Footwear and accessories retailer
Jan-16
LeftLane Sports, Inc.
Retail Innovation Group, Inc.
Online outdoor apparel and accessories
Jan-16
Hudson's Bay Company
Gilt Groupe, Inc.
Online retailer of luxury goods
Dec-15
China Buffett Investment Co., Ltd.
Metu Brands, Inc. (nka:American BriVision)
Online women's apparel retailer
Nov-15
GBG USA, Inc.
PS Brands, LLC
Private label socks, legwear and accessories
Nov-15
American Eagle Outfitters, Inc.
Tailgate Clothing Co.
Oct-15
Cintas Corporation No. 2
Coyne International Enterprises Corp.
Oct-15
Cherokee Inc.
Oct-15
Sep-15
EV/
Revenue
EV/
EBITDA
$1.4
-
-
$117.5
-
-
$18.6
-
-
$250.0
-
-
$0.4
NM
-
$130.0
1.30x
-
Sport-fan related apparel
$11.0
-
-
Uniforms, protective apparel, and related garments
$28.3
-
-
Flip Flop Shops Inc.
Operates a chain of casual footwear stores
$12.0
6.48x
-
Jarden Corp.
Visant Holding Corp.
Scholastic products including apparel
$44.9
-
-
Sequential Brands Group, Inc.
Joe's Jeans Inc.
Denim apparel
$69.5
-
-
Aug-15
Sycamore Partners
Belk Inc.
Operates apparel departments stores
$3,051.0
0.69x
6.9x
Aug-15
QVC, Inc.
zulily, Inc.
Online retailer of apparel and accessories
$2,476.2
1.69x
NM
Jul-15
Delta Galil USA Inc.
Loomworks Apparel, Inc.
Intimate apparel
$40.8
-
-
Jul-15
Marquee Brands LLC
Ben Sherman Ltd.
Apparel and footwear
$63.7
0.82x
-
Jun-15
Metabrid LLC
Disys Commerce Inc.
Apparel and accessories retailer
$5.7
0.44x
-
May-15
BootBarn Inc.
Sheplers, Inc.
Apparel and accessories
$147.0
0.94x
9.9x
May-15
GameStop Corp.
Geeknet, Inc.
Online apparel retail
$139.8
0.75x
-
May-15
Bluestem Brands, Inc.
Orchard Brands Corporation
Apparel manufacturer and distributer
$410.0
0.40x
5.8x
May-15
Ascena Retail Group Inc.
ANN INC.
Luxury retail and accessories
$2,206.1
0.80x
8.4x
Apr-15
Authentic Brands Group LLC
Frederick's of Hollywood Group Inc.
Intimate Apparel
$22.5
-
-
Apr-15
Sequential Brands Group, Inc.
The Jessica Simpson Collection
Women's Apparel and Accessories
$118.5
-
-
Apr-15
Webster Capital
Dover Saddlery, Inc.
Specialty Apparel
$73.6
0.70x
17.2x
Mar-15
CapX Partners and Comvest Partners
Karmaloop, Inc.
Online Apparel Retail
$13.0
-
-
Mar-15
Mador Lending, LLC
The Wet Seal, Inc., Substantially All Assets
Women's Apparel and Accessories
$7.5
-
-
Mar-15
Crow Family Holdings
CNL Dallas Market Center, L.P.
Wholesale fashion merchandise resource company
$140.0
-
-
Feb-15
Gladstone Corporation and Digital Fuel Capital, LLC
LogoSportswear, Inc.
Customized uniform apparel
$9.7
-
-
Feb-15
Arctic Cat Inc.
Motorfist LLC
Casual wear and accessories
$9.1
-
-
Feb-15
Hanesbrands Inc.
Knights Apparel, Inc.
Branded Sports Apparel
$193.5
-
-
Feb-15
David Peyser Sportswear, Inc.
To The Game, LLC
Collegiate Sports Apparel
$15.0
0.60x
-
Median
$54.3
0.77x
8.4x
Source: CapitalIQ, PitchBook, company filings, news releases.
Apparel, Accessories & Footwear
10
MOSS ADAMS CAPITAL LLC
. Select, Recent M&A Activity without Disclosed Values
$ in millions
Close
Date
Acquirer/Investor
Target
Target Description
Transacti
Value
EV/
Revenue
EV/
EBITDA
Feb-16
City Paper Company
Big Deal Promotions, Inc.
Promotional apparel and accessories design company
Feb-16
Huckberry LLC
Flint And Tinder USA, LLC
Men's undergarments and accessories
-
-
-
-
-
Feb-16
Sagamore Ventures, LLC
Towson Watch Company, LLC
-
Watch manufacturer
-
-
Feb-16
Envision Tees
-
Something Unique, Inc.
Custom screen printing and embroidery
-
-
Feb-16
-
Private Investor
Creative Embroidery
Apparel embroidery services
-
-
-
Jan-16
Gordon Brothers; Hilco Merchant Resources
City Sports, Inc.
Active sportswear retailer
-
-
-
Jan-16
Gerber Childrenswear LLC
Triboro Quilt Manufacturing
Infant and toddler clothing and bedding
-
-
-
Jan-16
BSN Sports, LLC
Jerry's Sporting Goods Store
Athletic equipment and apparel retailer
-
-
-
Jan-16
Private Investor
BBC Ice Cream, LLC
Retails boys and girls apparel and accessories
-
-
-
Jan-16
BSN Sports, LLC
LIDS Team Sports
Sport uniforms, custom apparel, footwear and equipment
-
-
-
Jan-16
GreenLight Capital, Inc.
Macy's, Inc.
Department store
-
-
-
Jan-16
Stonetree Signs
Four13 Design Works, LLC
Custom apparel, design, and print services
-
-
-
Jan-16
Ricoh Printing Systems America, Inc.
AnaJet LLC
Apparel and accessories printers
-
-
-
Jan-16
Prime Resources Corporation
Gemini Manufacturing, LLC
Promotional apparel, headwear, and accessories
-
-
-
Dec-15
BCS International, Inc.
Fulmer Helmets (nka:Loken Imports)
Manufactures apparel and motorcycle helmets
-
-
-
Dec-15
Just Got 2 Have It! Inc.
Kris & Company
Various products including apparel and accessories
-
-
-
Dec-15
OluKai LLC
Kaenon, Inc.
Manufactures eyewear
-
-
-
Dec-15
Bright Fame Fashion (HK) Limited
Thakoon, LLC
Women's apparel
-
-
-
Dec-15
Broder Bros Co.
Bodek and Rhodes, Inc.
Distributes imprintable apparel and active wear
-
-
-
Dec-15
Willowridge Partners; Saints Capital
eBags, Inc.
Online bag retailer
-
-
-
Dec-15
Charter NEX Films, Inc.
Bloomer Plastics, Inc.
Protective films and protective apparel
-
-
-
Nov-15
'47 Brand, Inc.
Old Time SPORTS, Inc.
Hockey apparel
-
-
-
Nov-15
Brentwood Associates, Inc.
Boston Proper, Inc., DTC Business
Apparel retailer
-
-
-
Nov-15
Farol Asset Management, LP
Cushnie et Ochs, LLC
Women's apparel
-
-
-
Nov-15
Camuto Group, Inc.
Bernard Chaus, Inc.
Women's apparel
-
-
-
Nov-15
Tradesy, Inc.
Shop-Hers, Inc.
Fashion community consigner
-
-
-
Nov-15
Shoes.com, Inc.
Richer Poorer Inc.
Socks and undergarments
-
-
-
Nov-15
Front Nine Capital, LLC
Mainly Monograms, Inc.
Distributes apparel and promotional products
-
-
-
Nov-15
Hilco Brands, LLC; Infinity Group
Le Tigre, LLC
Casual apparel and sportswear
-
-
-
Nov-15
Follett Corporation
Advanced Graphic Products Inc.
Manufactures apparel and promotional products
-
-
-
Oct-15
Bates Accessories, Inc.
Custom Brand Footwear, LLC
Leather footwear for David Spencer
-
-
-
Oct-15
Private Investor
Quiksilver Inc., Ampla Shoe Brand
Footwear designed for running
-
-
-
Oct-15
Foreside LLC
Coyne's & Company, Inc.
Home, garden, and fashion products
-
-
-
Oct-15
We Have Become Vikings LLC
Southpaw Prints LLC
Apparel, poster, and art printing
-
-
-
Oct-15
CCMP Capital Advisors, LLC
Shoes For Crews, LLC
Slip-resistant footwear
-
-
-
Source: CapitalIQ, PitchBook, company filings, news releases.
Apparel, Accessories & Footwear
11
MOSS ADAMS CAPITAL LLC
. Overview of Select, Notable Transactions
acquires
February 2016
• DSW Shoe Warehouse has agreed to acquire the online off-price retailer Ebuys,
Inc., for $62.5 million.
• Roger Rawlins, CEO of DSW, believes the acquisition of Ebuys will “add a
business to the DSW portfolio that will strategically scale our off-price sourcing
capabilities, expand our presence into digital marketplaces and create
opportunities to serve international customers online”.
• Ebuys will continue to operate as a separate business within DSW and maintain
its offices, while David Duong will continue to be CEO of Ebuys.
• The deal structure included an upfront cash consideration of $62.5 million, as
well as future payments contingent on the performance of Ebuys, Inc. over the
next three years, with an estimated present value of $55 million.
acquires
January 2016
• Hudson’s Bay Co. (“HBC”), parent company of Saks Fifth Avenue, agreed to
acquire flash sales site, Gilt Group for $250 million in cash.
• This transaction reflects HBC’s focus on advancing its all-channel model while
continuing to grow its successful off-price business.
• HBC will fold the online operation into its own off-price division, Saks Off Fifth,
and expects Gilt to contribute approximately $500 million of revenue and $40
million of adjusted EBITDA through revenue and cost synergies in 2017.
• Gilt’s $250 million price tag represents a significant markdown from the $1
billion valuation it obtained in a 2011 round of funding.
• This deal mirrors Nordstrom’s acquisition of HauteLook in 2011, which helped
the company attract younger shoppers, test promotions, and leverage ecommerce resources.
Source: CapitalIQ, company filings, news releases.
Apparel, Accessories & Footwear
•
U.S. Apparel, Accessories and Footwear M&A activity
finished 2015 at an all time high, 9.8% increase from the
2014 record.
U.S.
Apparel, Accessories & Footwear M&A 1
350
314
300
286
268
250
272
234
200
221
218
175
150
100
50
0
2008
2009
2010
2011
2012
2013
2014
2015
1) Includes U.S. and Canada.
12
MOSS ADAMS CAPITAL LLC
. Moss Adams at a Glance
Leadership through Experience and Results
Moss Adams Capital LLC
• Full-service investment
bank and strategic advisor
• Dedicated industry
specialists
• Advisory and execution
• Private equity
• Debt
• Mergers and acquisitions
• Restructuring
Long-Term Industry
Relationships
• All product types
• Public and private entities
• Full range of the capital
stack
Apparel, Accessories & Footwear
Moss Adams LLP
• Fully integrated accounting,
tax, and business advisory
firm
• 100+ years old
• Dominant in western US
• Middle-market specialists
• Accounting, tax, and
transaction Experience
• Real estate accounting best
practices
• Senior, experienced tax
specialists
• Leverageable transaction
resources
International Presence
• Dominance in Western US
• 2,400 employees in 28
offices
• Presence on national/global
basis
• Praxity affiliates across US
and more than 100
countries around globe
13
MOSS ADAMS CAPITAL LLC
. Expert Teams
INDUSTRY KNOWLEDGE MATCHED
WITH AN EXPERIENCED TEAM
• Senior Level Attention
• Commitment to our Clients
• Professional Excellence
• Objective & Independent Advice
• Creating Value for Owners
• Global Presence & Capabilities
Premier accounting and financial
services advice for middle
market apparel, accessories &
footwear companies.
Apparel, Accessories & Footwear
14
MOSS ADAMS CAPITAL LLC
. Moss Adams Capital Overview
Full Service Middle Market Investment Bank
Corporate Finance
•
Capital Placement – Equity and Debt
•
Merger and acquisition advisory
•
Strategic alternatives assessment
•
Exclusive sales and divestitures
•
Strategic planning
•
Management buy-outs
•
Recapitalizations
•
Fairness opinions
•
Comprehensive Industry Coverage
Restructuring and special situations advisory
Aerospace,
Defense &
Government
Services
•
Healthcare
Services &
Products
Industrials /
Niche
Manufacturing
Infrastructure &
Construction
Paper, Plastics, &
Packaging
Real Estate,
Lodging & Leisure
Access to key decision-makers among institutional
investor universe
Food, Beverage &
Agriculture
Technology,
Communications,
& Media
Transportation &
Logistics
Completed over 250 transactions
•
Business &
Marketing
Services
Consumer, Retail
& Apparel
Highlights and Accomplishments
Automotive &
Dealer Services
•
Coverage of relevant strategic partners
•
Average of 20 years of investment banking experience
among senior leaders
Apparel, Accessories & Footwear
15
MOSS ADAMS CAPITAL LLC
. Global Reach
Moss Adams is a founding member of Praxity, AISBL, a global alliance of independent accounting firms. In addition to its deep,
direct international relationships, Praxity provides access and trusted advisory expertise worldwide.
Europe
Austria, Azerbaijan, Belgium, Bosnia-Herzgovina, Croatia, Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Jersey, Luxembourg,
Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain,
Sweden, Switzerland, Turkey, United Kingdom, Ukraine
North America
Canada, United States
Asia
Bangladesh, China, Indonesia, Japan,
South Korea, Malaysia, Singapore,
Taiwan, Thailand, Vietnam
Middle East and
Indian
Subcontinent
Latin America
and Caribbean
Argentina, Bermuda, Brazil, Cayman
Islands, Chile, Colombia, Costa Rica,
Dominican Republic, El Salvador,
Guatemala, Honduras, Jamaica,
Mexico, Nicaragua, Panama, Peru,
Puerto Rico, Uruguay, Venezuela
Apparel, Accessories & Footwear
Africa
Angola, Benin, Botswana,
Cameroon, Cape Verde, Djibouti,
Egypt, Ghana, Ivory Coast, Kenya,
Lesotho, Madagascar, Mauritius,
Morocco, Namibia, Nigeria,
Senegal, South Africa, Tunisia
16
Bahrain, India, Israel,
Jordan, Kuwait, Lebanon,
Oman, Pakistan,
Palestinian territories,
Qatar, Saudi Arabia, Sri
Lanka, Tajikistan, United
Arab Emirates
Australasia
Australia, New Caledonia, New
Zealand
MOSS ADAMS CAPITAL LLC
. Global M&A Reach Through Local Relationships
Local, National and Global Reach
Our affiliation with CFxB consists of 150+ Corporate Finance Professionals across the U.S. and in over 25 countries
more than 25 countries
Apparel, Accessories & Footwear
17
MOSS ADAMS CAPITAL LLC
. Contact Us
Contributing Authors:
Richard Anderson
Managing Director
(949) 221-4006
rich.anderson@mossadams.com
Andrew Suen
Vice President
(949) 517-9428
andrew.suen@mossadams.com
James Parr
Analyst
(949) 221- 4099
james.parr@mossadams.com
Moss Adams Capital LLC
2040 Main Street
Suite 900
Irvine, CA 92614
999 Third Avenue
Suite 2800
Seattle, WA 98104
Wiley Kitchell
Managing Director
(206) 302-6780
wiley.kitchell@mossadams.com
Tyler Dale
Vice President
(949) 221-4030
tyler.dale@mossadams.com
James Rothenberger
Vice President
(206) 302-6777
james.rothenberger@mossadams.com
Harman Wales
Managing Director
(206) 302-6770
jet.wales@mossadams.com
Robert Miranda
Vice President
(949) 221-4021
robert.miranda@mossadams.com
Bradley Erhart
Associate
(949) 517-9452
bradley.erhart@mossadams.com
Brandon Clewett
Director
(949) 517-9426
brandon.clewett@mossadams.com
Scott Porter
Vice President
(206) 306-6326
scott.porter@mossadams.com
Daniel Seubert
Analyst
(206) 302-6775
daniel.seubert@mossadams.com
Apparel, Accessories & Footwear
18
MOSS ADAMS CAPITAL LLC
.