Castore expects revenue to double this year
After announcing a succession of kit deals with major sporting names, it’s no surprise that Castore on Monday announced an ambitious sales target for 2023.
What might have been a little surprising though, given the tough backdrop at retail currently, is that it's expecting a revenue increase of 100% compared to 2022.
The company has seen a fairly stratospheric rise to province and had already been predicting a big revenue jump for the year, but having raised its expectations by another 30% to $250 million, that represents a doubling of sales over the period.
And it cited the aforementioned kit deals as one of the key drivers for this increased revenue prediction. As well as a number of recent deals in the UK, it has also linked with new teams in Europe such as Feyenoord Rotterdam FC, Athletic Club Bilbao, Football Association of Ireland, FC Twente, and FC Utrecht “with more being announced soon”.
But there are other factors feeding into its impressive growth, including, new localised e-commerce platforms, and the growth of its physical retail portfolio, with Castore adding a minimum of three stores across key European cities including Amsterdam.
Meanwhile, impressive organic growth for its mainline brand is continuing with a “wider net of wholesale partners”. The company is now available in more “key accounts” including Fanatics, Very, Frasers Group (both Sports Direct and Flannels), JD, Harrods, John Lewis and Fenwick.
And recent brand collaborations with key sports personalities such as boxer Joe Joyce, Malaysian professional golfer Gavin Green and extended partnerships with three-times grand slam winner Andy Murray are also having an impact.
Co-founder Tom Beahon has been saying for some time that he wanted his brand to become "the number one premium sportswear brand in the world,” and while that might have seemed overambitious a few years ago, the headlines the company has been grabbing in the last year suggest that it's possibly an achievable aim.
Of course, the business remains far smaller than the global giants, such as Nike and Adidas, whose crowns it's targeting and it’s exec team is aware that it still has a lot of work to do.
Beahon said Monday that “right now, we’re focusing our efforts on boosting consumer awareness — developing close partnerships with sports teams and performance athletes and, driving organic growth of our mainline brands both digitally and within engaging new in-store environments.
“This is a really exciting time for us. We’ve the backing, liquidity, confidence and more importantly, the best performance sportswear kit that makes the most of advanced engineering and unique technical fabrics, to realise our strategic goals.”
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