The founder and CEO of the Rapha cycling brand, Simon Mottram, says the company’s “direct to consumer business model” is helping to pedal growing sales and improving profitability.
In the year to 31 January 2016 the brand’s following has continued to grow internationally and digitally, helping total sales jump by 25.6% to £48.8 million and EBITDA increase by 79% to £3.5 million. Profit before tax was up by 145% to £1.1 million for the 12-month period.
US/Canada sales grew 28%, while Asia Pacific sales leapt 29% and Europe sales increased by 23%. Online sales now represent 72% of total sales with strong growth reported in all regions supported by the company’s SAP Hybris eCommerce platform.
