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lolagetts.com 1 L O L A G E T T S . C O M

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lolagetts.com1

L O L A G E T T S . C O M

lolagetts.com2

Making Plus Size Women

Feel Empowered and

Beautiful…

lolagetts.com2

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Lola Getts . . . What She Wants

Lola Getts Active’s mission is to make the plus-size

woman feel empowered and beautiful by designing

and fitting top quality, fashionable, performance active

wear exclusively for the woman sized 14-24.

Lola Getts Active targets women aged 18-45 who are

striving to live a healthy lifestyle and at the same time

managing career and family. This woman appreciates

quality and is willing to spend more on one incredible

piece of active wear that will last, than repurchase

lower quality items several times over.

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We do this By Creating Quality Active Wear Designed for Her

Plus size women hold 28% of the active apparel purchasing power, but spend only 17% . . .NPD

And this is why $3.1 Billion is being left on the table:

1 Clothes fit poorlyMajor players refuse to make plus sizes2

Retailers shun the plus size customer

3

The Active Wear Market is a $30 Billion Industry . . .And growing 2x as fast as the overall apparel industry NPD

Lululemon is already generating $1.5B in revenue solely in standard sizes and stores only in North America.

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Lola Getts . . . ROI

Lola Getts is filling a need in an

underserved market, and has the

opportunity to grow to be a $300-$500M

revenue company in 5 years.

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The Plus-Size Active Woman is not the Minority

67% of US women wear a size 14 or larger Refinery 29

57% of US women wear at least some clothing in sizes 16 and above Modcloth

53% of overweight people and 41% of obese people say they exercise three or more days a week! Gallup Poll

YET . . .

62% of plus-size women say they have a hard time finding the styles they want NPD

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The Plus-Size Woman is a Different Consumer

Her proportions are different from regular sizes

– Therefore the normal grading up of sizes leaves these customers with poorly fitting clothes.

She prefers to shop online

– She is twice as likely to shop online as her smaller counterparts.

– She is also buying more than 50% more of her clothing online than women who only wear standard sizes.

She is willing to pay for quality fashionable products.

– She spends on average 25% more and buys 17% more items per order than regular-sized shoppers.

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But The Industry Continues to Ignore Her

Retailers relegate plus size women to the upper level, back corners of the store.

Retailers do not want to identify with plus size customers.

– They do not want to hurt their own brand image or the self identification of their customers by seeing larger women shopping in their stores or wearing their clothes on the street.

Manufacturers do not want to make different patterns.

– To properly fit, they must make completely new patterns and manufacturers do not want to spend the money.

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Transforming Plus-Size Active Wear

From This . . . To This . . .

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By Creating Garments Exclusively For Her

Fit– Spent two years designing for, and perfecting the fit of the

plus size woman. Styling

– Fashionable designs to flatter, not conceal. Material

– Use the highest quality fabrics and details. Sewing

– Flat lock stitching to reduce chafing, while providing comfort and wearability.

Diamond Shaped Crotch– Special shape and stitching to avoid camel toe issues.

Manufactured in the USA – Providing the highest quality control and inventory

management.

8

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Lola Getts Product

Over 200 SKU’s.

– Made up of 7 bottoms and 7 tops in various colors and styles.

– Sized 0-2 rather than traditional sizing. This brings a positive reaction for women accustom to seeing double digit sizing.

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Lola Getts……. Results

First product was sold January 2013

1100 garments

Direct to consumer, wholesale and flash sales

100% sold through – with zero returns

Second production run completed September 2013

1200 garments

Direct to consumer, wholesale and flash sales

90% sold through to date – with zero returns

Third production run in process now

1400 pieces committed to stand alone flash site

Fourth production run in prep now

1800 pieces to be sold in regular 60 day sales cycle.

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How We Will Get There

Lola Getts Active is raising $1.5M to launch a full scale marketing campaign, build inventory, infrastructure, and finance working capital needs until the company is at break-even and self financing (18-24 months).

Another capital raise will occur in approximately 3-4 years. This will allow further expansion into complimentary lines of business, broadened apparel lines, and the creation of a community portal supporting all aspects of the plus size woman.

We anticipate in 5-7 years we will either be bought out by a strategic partner, private equity firm or raise additional funds for further growth.

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The Business Model

Manufacturing

– All product is made in the USA.

– Materials are top of the line.

Pricing

– Tops have an MSRP between $57-$69 vs. comparable competitors pricing of $60-$100.

– Bottoms average $74 vs. $98 for similar quality competitor product.

Margins

– Gross Margins when sold on the Lola Getts site average 75%.

– Wholesale margins average 51%

– Limited time availability or “Flash sites" average 20%.

– Increased volume will drive margins up 10-15 points.

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The Business Model

Selling Strategy

– Lola Getts will primarily be an e-commerce brand.

– Customers will be acquired through digital and traditional marketing, product placement, and PR.

– Sales Reps in specific territories will focus on specialty retailers (currently we have 4).

Sales Cycle

– New product will be introduced every 60 days.

– Pre-sales will occur two weeks prior to availability.

– 45 days after availability, product will be put on sale on the Lola Getts site.

– 60 days out, remaining product will be sold through limited time offer retailers such as Zulily or Ideeli.

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The Competitive Landscape

Lola Getts Lululemon

Nike/Old

Navy Athleta

Lane

Bryant Lucy Zella

Moving

Comfort

Size 14-24 0-12

X-3X

(Limited

Styles)

0-20

(Limited

Styles) 14-32 00-16 14-24 0-20

Does Not Grade Up P N/A P

Fit on a Plus Size Woman P P

Fashionable P P P P P P

Flat Lock Stitiching P P some some

High Compression Material P P P Focus Solely on Plus Size P P

Diamond Crotch P P

(to avoid Camel Toe)

Manufacturered in the USA P

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Lola Getts is seeking $1.5M to fund

Digital Marketing - $275,000– Social media, SEO, Facebook, Twitter, LinkedIn, Pinterest,

and Instagram Traditional Marketing - $275,000

– PR, magazine and online advertising, trade shows, promotional giveaways, in-store marketing materials and sponsorships.

Infrastructure - $500,000– Enhanced web site/community portal.– Customer service capabilities.– Accounting/finance, marketing, IT and administrative staff.

Inventory - $200,000– To support all orders, sample requirements, promotional

opportunities and trade shows.

Working Capital to fund growth - $250,000

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Management Team

Jodi GeigerHas spent over 25 years in the garment business. Having started out in New York City as a sales rep for AGH Trimsource, Jodi has extensive experience with manufacturers on all levels including owners, production planners and designers. Jodi holds a BS/BA in Economics and Finance with a Minor in Accounting from the University of Hartford.

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Management Team

Stacey Goldstein Stacey studied Finance and Textiles at the University of Rhode Island. She grew up in the garment business, assisting her grandfathers pattern makers in his 7th avenue dress manufacturing facility. Stacey later turned her passion for knitting into a custom knitting business. Through these experiences she learned to design garments, the importance of fitting a garment properly, and worked with customers and suppliers.

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Management Team

Lois UngarStarted her career at the Walt Disney Company where she rose to become the Head of the Studio Planning and Finance team. As one of the initial hires at DreamWorks SKG she was key in building the financial and operational infrastructure. Lois went on to become the CFO of Universal Studios’ Consumer Products division. Most recently, Lois was the CFO of Lieberman Research Worldwide, she holds an MBA with an emphasis in corporate finance from the University of Southern California and, a BS from Indiana University.

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Pro Forma Statement of Operations

Year 1 Year 2 Year 3

Total Revenues 1,112,232$ 4,976,744$ 14,560,373$

Total Cost of Goods Sold 472,771 1,766,608 4,491,101

Total Gross Profit 639,461 3,210,136 10,069,272

Gross Margin 57% 65% 69%

Operating Expenses

Promotion and Marketing 543,033 768,118 1,637,430

Operations 207,255 589,732 1,487,591

Web Site Development & Maintenance 81,250 341,083 618,367

Salaries, burden and commissions 582,718 918,470 1,513,844

(incl exec salaries) - - -

Legal & Accounting 99,000 126,000 120,000

All other G&A 136,992 554,469 1,233,811

Total Operating Expenses 1,650,248 3,297,873 6,611,042

Income (Loss) from Operations (1,010,787) (87,737) 3,458,229

-91% -2% 24%

Projected Income Taxes @ 40% (404,315) (35,095) 1,383,292

Net Income (Loss) After Taxes (606,472)$ (52,642)$ 2,074,938$ (before loss carry forwards)

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Pro Forma Balance Sheet

Pre-funding Period 12 Period 24 Period 36

Assets

Cash 4,114 392,584 66,184 3,202,331

Accounts receivable (% of Revenues) 397 95,919 321,014 604,156

(15% yr 1, 10% yr 2, 6% yr 3)

Finished Goods Inventory 18,988 75,461 212,184 468,383

Total current assets 23,498 563,963 599,381 4,274,870

Property, Plant and Equipment

Office furniture and equipment - 50,000 100,000 150,000

Capitalized Moving Expenses - 5,000 5,000 5,000

Leasehold Improvements - 25,000 25,000 25,000

ERP - - 200,000

Website Development - 75,000 150,000

Accumulated Depreciation - (15,000) (86,667) (266,667)

Net Fixed Assets - 65,000 118,333 263,333

Other Long Term Assets

Trademarks - 10,000 10,000 10,000

Total Other Long Term Assets - 10,000 10,000 10,000

Total Assets 23,498 638,963 727,714 4,548,203

Liabilities

Accounts payable (% of Costs & Expenses)6.0% 1,129 127,381 303,869 666,129

Accrued expenses - - - -

Accrued income taxes payable - (404,315) (439,410) 943,882

Other Current Liabilities - - - -

Total Liabilities 1,129 (276,934) (135,541) 1,610,011

Equity

Common Stock - 1,500,000 1,500,000 1,500,000

Paid In Capital 41,409 41,409 41,409 41,409

Retained Earnings (19,040) (625,512) (678,154) 1,396,784

Total Equity 22,370 915,897 863,255 2,938,193

Total Liabilities and Stockholders Equity 23,498 638,963 727,714 4,548,203

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Pro Forma Cash Flow Statement

Period 12 Period 24 Period 36

Net income (606,472) (52,642) 2,074,938

Adjustments to reconcile net income to net cash

used in operating activities

Depreciation 15,000 71,667 180,000

Changes in operating assets and liabilities

(Increase) decrease in accounts receivable (95,522) (225,095) (283,143)

(Increase) decrease in inventory (56,472) (136,723) (256,199)

Increase (decrease) in accounts payable 126,252 176,488 362,260

Increase (decrease) in accrued liabilities (404,315) (35,095) 1,383,292

Increase (decrease) in other current liabilities - - -

Net cash provided by operating activities (1,021,530) (201,400) 3,461,147

Investing activities

Purchases of furniture, equipment and improvements (80,000) (50,000) (50,000)

ERP system - - (200,000)

Website Upgrade - (75,000) (75,000)

Establishment of Trademark (10,000) - -

Net cash used in investing activities (90,000) (125,000) (325,000)

Financing activities

Proceeds from sale of stock and or subordinated debt 1,500,000 - -

Net cash provided by financing activities 1,500,000 - -

Net increase in cash 388,470 (326,400) 3,136,147

Cash and cash equivalents at beginning of year 4,114 392,584 66,184

Cash and cash equivalents at end of year 392,584 66,184 3,202,331