3.0x / 41% IRR
Online fashion retailer
Dress-for-less was one of Europe’s leading on-line designer fashion outlets, selling primarily end-of-season apparel from over 250 designer labels, including Tommy Hilfiger, Ben Sherman, Calvin Klein and Dolce & Gabbana, to consumers in 40 countries via the internet. The Company was headquartered in Flörsheim, Germany and had 67 employees.
Increased internet usage was forecast to drive 20% per annum growth across all categories of on-line retail, with the apparel sub-segment, which includes clothing, footwear and accessories, exhibiting particularly rapid growth. The segment was worth €14 billion in 2006 and expected to grow at 15 - 40% over the following five years. DFL was well positioned to take advantage of the trend, with strong relationships with leading brands and an efficient logistics model. Palamon’s objective was to create a leading pan-European on line apparel retailer by working with management to improve customer acquisition and retention, focusing DFL’s activities on certain key markets in Europe, and expanding the Company’s supplier relationships.
During the hold period DFL doubled sales in Germany and quadrupled revenues stemming from other regions and its full-price offerings. The company, which achieved revenue CAGR of 36% per annum, was headquartered in Kelsterbach just outside Frankfurt and had 150 employees.
On 30 March 2011 Palamon sold its shareholding in DFL to Privalia Venta Directa, a leading on-line sale club for fashion brands. The transaction generated a 3.0x return on invested capital and 41% IRR.