Comparable Valuation - Retail Apparel Group

With the possible IPO of the Retail Apparel Group [RAG], there might be a new listed comparable for SFH on the market in the near future.

At this stage the only metrics I have seen are RAG's 2016 EBITDA of $36.5m on sales of $326.2m, with 391 stores. There was talk of a 391 store network in February 2017 - up 30 stores in the last 5 months. The AFR article from 12.02.2017 mentioned an IPO valuation of up to $400m for RAG.


Sales growth in FY'17 was said to be 15%, but driven by double digit store growth for Connor and Jonny Brigg brands. Obviously, unless SFH can grow internationally, RAG currently has a more attractive growth profile justifying a higher valuation multiple.

If anyone knows more detail on RAG's busienss, please let us know.

RAG's IPO valuation might provide a trigger for an upward revision of SFH's takeover price offer. Who knows, maybe one day the WOMAN (SFH) and the MAN (RAG) could get together in a marriage and create lots of little CHILDREN (synergies).