Clothing Brand

Industry Overview

The clothing brand industry in Portugal is a vital sector of the Portuguese economy. Here’s an overview:

• Production Value: The production value of textiles and clothing reached more than seven billion euros in 2022.
• Revenue: The apparel and footwear retail trade revenue index exceeded 130 in May 2023, with the base year 2015 having a value of 100. The revenue in Portugal’s Apparel market in 2024 amounts to US$7.69 billion.
• Market Growth: The market is projected to grow annually by 2.54% (CAGR 2024-2027).
• Consumer Spending: Household consumption expenditure on clothing in Portugal from 2011 to 2022 was in millions of euros.
• Sustainability: Portugal’s apparel market has witnessed a surge in demand for sustainable and ethically made clothing, reflecting the country’s commitment to eco-conscious fashion.

Location

Metropolitan Area of Lisbon.
The retail store is located in one of the most important, diverse, and busiest shopping centers in the country.

Business Description

It offers clothing for festive occasions such as weddings and baptisms, as well as some casual lines. The brand has clothing for all styles, genders, and ages, always guaranteeing the maximum quality of its products.
In 2022 and early 2023, the store was in the top 10% of stores with the highest sales in the shopping center.
The target audience is national and PALOP countries' customers.

Financial Summary

• There has been a growth in the volume of business of 77% and 57% in 2021 and 2022, respectively, reaching levels higher than pre-pandemic levels.
• There has been a growth of 28% in sales in the first 3 months of 2023 compared to the same period last year.

Investment Rationale

• All sales are cash and CAPEX needs are reduced.
• In 2022, the company achieved an average revenue per employee of 163 thousand euros.
• The company is sold without any bank liabilities or non-current encumberments.
• There is an excellent opportunity for business expansion, as the business model can be easily replicated, given the brand's high recognition. The management team recognizes that opening a store in another region of the country would be a relevant strategic decision