Rapha has swung to a dramatic loss less than six months after being sold to the grandchildren of Walmart founder Sam Walton for £156 million.
The upmarket cycling brand reported a £20 million pre-tax loss on turnover of £42.2 million in the six months to January 2018.
This compares to a sales rise 37.5 per cent to £67.1 million in the year to January 2017 under its previous owners, alongside profits of £1.4 million.
In September, just a month after its sale to the private-equity firm RZC Investments, Rapha made around 80 of its staff redundant amid a drive to “reduce costs, and consolidate and strengthen our position”.
The brand, founded in 2004, has gained a cult following among the cycling community, seeing over 9000 members pay £135 a year for a membership in its club.
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5 Comments. Leave new
They got greedy and tried to increase their profits but they forgot that it was working as it was. They broke it. They didn’t learn about the business first.
I agree. It’s ambition also lost its exclusivity. Now, the garments are ubiquitous, commonplace and should be twinned with Shimano. Its gear maybe good but it has introduced nonsensical lines in a bid to bring in more cyclist when its key was to keep it exclusive. Brands like Cafe Du Cycliste are no filling that gap and Rapha are running with low pressure in its premium cache.
Sad that Rapha has fallen, it was a great brand.
I now buy Pedal Mafia. I like their clean look.
Eventually, people realize (myself included) that they are just way overpriced. There are cheaper alternatives that are equal if not better in quality.
Oh and their designs are just so boring!
Which brands Shai? Just courious to see if there are other brands I might not be aware of.