Balmain seeking buyer

[Law]

Apparently Balmain are looking to sell up. Estimates value the company at around 300-400 million Euro, with their annual turn over at 30 million Euro. Frankly, I'm quite surprised, as I thought both would be considerably higher.

http://www.businessoffashion.com/articles/news-analysis/balmain-reportedly-looking-to-sell

[Faust]

Yeah, I've read before that their turnover is 30 mil. 10x the annual revenue seems ok, no?

[Law]

Yeah, I've read before that their turnover is 30 mil. 10x the annual revenue seems ok, no?

No, I mean I'm more surprised with their annual turnover "only" being 30 million Euro per year. I would have thought that it would have been considerably higher than that, for a French "prestige" brand, as heavily marketed, celebrity associated and social media driven as they are. Rick by comparison is allegedly turning over closer to 4 times that amount.

[snafu]

Yes I agree i was shocked, I know Rick turns over more than five times that amount. Maybe Balmain licensed alot of things, i mean seriously alot of hair salons use their sea salt spray. I don't know the brand well but its still shockingly low considering the Kim Kanye connection.

[Law]

Figures in the original article are seemingly out of date, according to another older article on BOF:

http://www.businessoffashion.com/articles/video/bof-exclusive-balmains-social-media-driven-retail-rollout

The challenge now facing Diemoz, is converting the impact of Rousteing’s trailblazing use of social media platforms into commercial success. The Balmain business is, still, relatively small, with revenue of over €30 million in 2012, growing about 20 percent per year. What’s more, it was only a decade ago, in 2004, that the house faced bankruptcy.

If those projections are correct, that would put them closer to between 50-60 million in annual turnover.

[snafu]

So what you think turnover is closer to €50-60? Still low for such a known french house.

[Faust]

It makes sense. They've never made an it bag and their product assortment is rather narrow and repetitive. How many $1500 pairs of jeans can they sell?

[Law]

It makes sense. They've never made an it bag and their product assortment is rather narrow and repetitive. How many $1500 pairs of jeans can they sell?

Yes, nor have they ever released a heavy unit shifter fragrance.

[LupinTheFourth]

The thing is

Balmain's annual turnover might be only 30m€ because the licensing, production etc. is being run by others. The numbers are much bigger when you combine the results of shoes, women's & men's rtw and multiple sales-periods.