Kiely Rowan seeks funds to expand in luxury market
Kiely Rowan designs and sells bags, clothes, accessories and bedding in 33 countries, with brand retail sales for the year to March forecast to increase 20% to £46 million (€53m), according to Rowan.
“We can grow up to 20% organically,” Rowan, who owns the company jointly with Kiely, said. “We are looking at our options”, which could include selling shares to the public, as well as “looking for a long-term partner, like a fund, with knowledge and contacts”. Money raised this way would be used as working capital and to open more stores, he said.
Luxury brand retailers have seen sales surge in recent months, pushed by demand from emerging markets. Burberry last week saw its shares climb 5.3% after sales for the three months through December rose 27%. Mulberry posted a 66% increase in own store sales in the holiday trading period. SuperGroup, which owns the clothing brand Superdry, has tripled in market value after selling shares for the first time in London last year.
“Mulberry and Burberry are good examples of genuine global brand stories and the market is prepared to pay up for growth companies, as demonstrated by the Supergroup IPO,” Andrew Wade, associate director of retail equity research at Numis Securities said.
Potential investors have already shown an interest in Kiely Rowan, which has never made a loss in 15 years, Rowan said. “We have had offers but these talks are a process,” he said. “If we get a fair wind we will take it.”
The Bloomberg European Fashion Index, which includes LVMH Moet Hennessey Louis Vuitton, Cie Financiere Richemont and Hermes, climbed 60% last year.
Dermot said he sees huge growth potential in Asia.
Kiely’s designs, which have been used on a range of Apple laptop accessories, and include a signature stem-print leather Ivy bag that sells for £288.50 (€335), will go on sale at London’s Harrods next month.
