RM Williams, the iconic Australian brand known for its premium leather goods and signature boots, is on track to experience a substantial surge in earnings over the next few years. The company, currently in the process of being sold, is anticipated to more than triple its earnings by 2024, as forecasted by investment bank Goldman Sachs. This optimistic projection is underpinned by RM Williams’ strategic plans for expansion across various key markets, including Australia, the UK, the US, and other international territories.
During the 2019 financial year, RM Williams reported an EBITDA of A$23 million. Fast forward to 2021, this figure is expected to rise to A$34 million and soar to A$83 million by 2024. The brand’s revenue in its home market of Australia is predicted to see a significant boost of A$98 million over the next five years, through both online sales and brick-and-mortar stores. With 12 consecutive quarters of strong like-for-like sales growth in Australia and New Zealand, RM Williams is establishing itself as a brand on a trajectory of consistent upward momentum.
Noteworthy is the company’s commendable compound annual growth rate of 10% over the past four fiscal years, coupled with a robust gross margin of 62%, positioning RM Williams as a profitable player in the industry. While the focus on the Australian and New Zealand markets has been fruitful, there remains substantial untapped potential for growth in other regions worldwide.
In the UK, RM Williams is gearing up to launch two new retail outlets and expand its wholesale distribution network by 90 new doors, with an expected revenue increase of A$28 million. Across the pond in the US, the brand is eyeing the opening of 17 new stores and expanding its wholesale presence by 200 doors, aiming to boost revenue by A$70 million. A key priority for RM Williams is to ramp up online sales to constitute 10% of its overall revenue stream.
Following L Catterton’s decision to put RM Williams on the market in May, Goldman Sachs has been tasked with overseeing the brand’s sale. Speculation buzzes with potential bidders for RM Williams, ranging from global consumer brand titans like VF Corp to private equity firms such as Fosun and Lunar Capital, in addition to local industry giants. Armed with a solid foundation in its core markets and ambitious plans for global expansion, RM Williams is primed for significant growth and triumph in the times ahead.
For more information on RM Williams and their latest collections, visit their official website. To stay updated on business news and developments, check out Bloomberg.
