Website Closers® presents a Men’s Hat Brand that has been in business for over 75 Years. This established, highly acclaimed company manufacturers all hats under their historic brand name and uses a multitude of sales channels to maximize their exposure, including wholesale distribution and online ecommerce. This is a unique business with lower competition in a space where both the manufacturing and the sales of the company are controlled.
The company was established in Missouri in the 1940s, and the owner started selling hats in the region using unique designs, but with limited mechanical resources. After all these years, the company has shifted from a primarily wholesale partner, to an online retailer. Amazon.com, the Company’s branded website, and a secondary website are now the primary sale channels for the company’s B2B and DTC client base. The company is well-known and dependable; it has grown to dominate its industry and draws a vast array of customers each month. It is not often that one gets the opportunity to purchase such an historical icon in the Men’s headwear space – companies as rare as this do not come up often.
The company’s hats make excellent headgear for any situation, whether for business, pleasure, or fashion. While they have been focused just on the Male Demographic all these years, there is additional scale opportunities to target female consumers as well.
The brand only orders materials of the highest caliber to develop bespoke and one-of-a-kind items, making them one of the most recognized manufacturers in the industry. Authentic pelt, straw, yarn, and other fabrics guarantee the ultimate level of quality and luxury for clients for many years after making a purchase.
This company has an abundance of product offers, each with various options, which provides a low concentration risk on any given SKU. The profitability of this business is also very attractive – with 33% net margins – they have an abundance of blue sky available for growth initiatives. Additionally, even though the brand is over 75 years in business, one would think their growth has stabilized … but not so with this brand … 2022 Earnings beat 2021 earnings by 52%.
In addition to setting a precedence in the market, there is very little seasonality in this business. Items are sold all year round, with summer and winter being the busiest times of the year. Revenue could upsurge significantly during the slower quarters and perhaps even out with global development, notably in the eCommerce sector. Seasonality would be negated by opposing regions, and subsequently, profitability would likely surge.
Wholesale clients have the ability to browse styles, view prices, and order products through the company’s sleek online catalog system. Offering both lavish and daily wear, it delivers precise and insightful info about each item. Numerous 5-star evaluations show that overall quality and consumer happiness are high. With the help of a newly implemented SEO initiative, the websites generate significant organic traffic that should increase in the medium to long term with further SEO implementation. Since the business uses a 100% stock strategy, merchandise is always available. In addition, the brand occasionally sells one-off items, such as hats with a private label or those produced to order. Every contract is payable on a monthly basis, and the rate of attrition is meager.
Inventory valued at $1,000,000 is included in the sale price, which will significantly boost cash flow for the new owners and, notably, ensure a smooth changeover. Depending on the requirements of a buyer, the current owner is willing to continue in some role.
The business has been and is all set to remain immensely rewarding for a new owner. Because shoppers with growing incomes are inclined to spend more money on eCommerce platforms, the global fashion sector is incredibly profitable. With an insatiable appetite in North America and Asia, the market is expected to generate $2 trillion in the next three years. Management shrewdly releases new collections annually to stay on top of fashion trends and add value to loyal patrons. As a result, the rate of returning clients continues to grow far beyond the industry average.
A buyer has enormous room for growth and many avenues to achieve this. For instance, an eCommerce guru with astute marketing skills could explode sales in the direct-to-consumer sector while maintaining steady augmentation in the crucial wholesale branch of the business. Affiliate partnerships and launching products on additional platforms are low-hanging fruit, and the logical move is to aggressively utilize digital marketing and allocate a budget toward paid online advertising.
A buyer with an established network can quickly profit through significant licensing agreements and additional recurring customers. On the other hand, someone with knowledge of the clothing industry would be in a prime position to keep things as they are and enjoy the fruits of 75 years of toil.
The majority of responsibilities are handled by the company’s established and highly effective staff. The owner’s primary responsibilities involve overseeing departments, economic management, and product design. Furthermore, he focuses on high-level strategy, expos, and cultivating relationships with new key accounts.
This business has developed fantastic supplier ties, as one would predict from such an established and well-respected business. Half of all SKUs are produced in the United States. The remaining products are sourced from several manufacturers and purveyors, primarily in Asia, Europe, and South America.
This is a coveted and iconic acquisition because profitable and distinguished companies like this don’t often become available. As a result, the prospect offers a buyer the ability to achieve great success swiftly and expand it to new heights in the current eCommerce climate.
