maveco-
What is the next level for Rapha tho?
They are still niche.
In % of market, of revenue, and of brand awareness, they are fighting to be a big player.
They may be known to everyone on here, but they're barely a blip on the radar for most, and aren't a purchasing consideration for a lot of commuter cyclists who still just buy whatever Evans had and didn't consider that there might be something else.
They could easily double, triple... or increase by an order of magnitude... their sales, and increase their revenue.
Today, Rapha have a fairly wide range of high quality products... they should be selling this range to a far larger audience, to drive the costs down and the revenues further up.
They have all of the things they need to do this already, except perhaps a hell of a marketing warchest of cash, and more refinement on their logistics to scale up.
I think it would be good, unless Sports Direct go and buy them.
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Velocio
Probably overdue TBH.
They have majority shareholders who are now the founders, and the business is healthy and profitable after more than a decade.
Typically such investors and shareholders are looking for initial returns in the 7-10 year range and more substantial returns in the 10-15 year range. We're well into the latter, and it's a natural point for what is now a large company (typical definition caps headcount below 250 as medium, below 50 as small) to benefit from mature systems, streamline costs, and new investment to reach the next level.
It was always going to happen (investors always want am exit and return), let's hope it's a buyer who will understand the brand...
... the real debate is surely: fashion house vs sports empire? Which would we hope for?
I think it naturally fits a fashion house, and indeed some of their hiring suggests that is what they think too... but if that happens then the prices will be a little pricier in time.