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www.harriswilliams.com
Member FINRA/SIPC
Consumer and Retail
Industry Update May 2012
May 2012
For more information regarding our consumer experience, please contact Glenn Gurtcheff ([email protected]), Tim
Alexander ([email protected]), Jeff Cleveland ([email protected]), Ryan Budlong
([email protected]), or Brant Cash ([email protected]) at +1 (612) 359-2700.
• The New York Times reports that sales momentum for retailers slowed in April. “The 19
chains tracked by Thomson Reuters reported a thin 0.8 percent increase in sales at stores
open at least a year, missing the 1.5 percent gain that analysts were expecting.” Read the
article here.
• Golf Town, Canada's largest specialty golf retailer, and Golfsmith International Holdings,
Inc. announced on May 14th that they have signed a definitive merger agreement, pursuant
to which Golf Town will acquire Golfsmith, a leading specialty golf retailer in the United
States. Golf Town will acquire Golfsmith for US $6.10 per share in cash. Read the article
here.
• The Wall Street Journal reports that AMC Entertainment Corp. has announced their deal to
be acquired by Dalian Wanda Group, a Chinese conglomerate. “Wanda will pay $2.6
billion for the company, which is currently privately-owned by investors including Apollo
Global Management, Bain Capital, Carlyle Group, CCMP Capital Advisors and Spectrum
Equity Investors.” Read the article here.
• Bed Bath & Beyond announced on May 9th its plans to acquire Cost Plus. Cost Plus
operates as a specialty retailer of casual home furnishings and entertaining products in the
United States. “Under the terms of the deal, Bed Bath & Beyond is offering $22 a share in
cash for Cost Plus, which is more than 22 percent above the company’s closing price.”
Read the article here.
Consumer and Retail
Industry Update
1 of 16
Richmond
Phone: +1 (804) 648-0072
Fax: +1 (804) 648-0073
Boston
Phone: +1 (617) 482-7501
Fax: +1 (617) 482-7503
Cleveland
Phone: +1 (216) 689-2400
Fax: +1 (216) 689-2401
London
Phone: +44 203 170 8838
Fax: +44 207 681 1907
Minneapolis
Phone: +1 (612) 359-2700
Fax: +1 (612) 359-2701
Philadelphia
Phone: +1 (267) 675-5900
Fax: +1 (267) 675-5901
San Francisco
Phone: +1 (415) 288-4260
Fax: +1 (415) 288-4269
Contacts
What We’ve
Been Reading
May 2012
Equity Trading
Overview
Key Trading
Statistics
(detail begins
on page 6)
Public
Company
Sector
Performance
(12-month %
change in
stock price)
Change in Stock Price
3 mos. 12 mos. Revenue EBITDA Revenue EBITDA
Consumer Products
Apparel & Footwear 35 $917 (5.7%) (18.0%) 0.99x 8.0x 0.94x 6.9x
Automotive Products 12 2,398 (2.0%) 28.7% 0.51x 10.2x 0.47x 9.4x
Home & Office Furniture & Furnishings 14 762 (12.4%) (19.7%) 0.55x 8.3x 0.58x 6.4x
Household Products 11 4,282 (5.5%) (2.6%) 1.24x 8.3x 1.22x 7.7x
Personal Care Products 16 2,239 0.5% 15.4% 1.44x 8.5x 1.45x 8.0x
Recreational & Leisure Products 21 387 (0.7%) 18.7% 0.92x 9.0x 1.00x 7.3x
Retail
Apparel & Footwear Retail 45 922 4.7% 1.1% 0.61x 6.4x 0.58x 5.5x
Catalog & Specialty Distribution 8 315 (10.3%) (5.4%) 0.13x 7.6x 0.13x 5.2x
Department Chains 9 8,086 (6.1%) (6.8%) 0.58x 6.3x 0.54x 5.8x
Discount Stores & Mass Merchants 13 2,325 5.0% 8.9% 0.57x 7.2x 0.64x 7.4x
Furniture & Furnishings Retailers 14 992 (5.0%) 9.9% 0.83x 7.9x 0.79x 6.5x
Internet Retail 13 599 (2.9%) 4.3% 1.07x 13.5x 0.95x 8.7x
Specialty & Other Retail 30 1,306 1.5% 6.8% 0.60x 8.2x 0.55x 6.9x
Consumer Products 109 $1,578 (3.7%) 6.4% 0.95x 8.4x 0.97x 7.5x
Retail 132 $992 (2.9%) 4.3% 0.60x 7.6x 0.58x 6.5x
Consumer & Retail Index 241 $992 (2.9%) 4.3% 0.61x 8.2x 0.64x 6.9x
SectorNumber of
Companies
Median
Enterprise
Value ($mm)
Median TEV/
Forward Mulitples
Median TEV/
LTM Multiples
2 of 16
Home & Office Furniture & Furnishings
Apparel & Footwear
Department Chains
Catalog & Specialty Distribution
Household Products
S&P 500
Apparel & Footwear Retail
Consumer & Retail Index
Internet Retail
Specialty & Other Retail
Discount Stores & Mass Merchants
Furniture & Furnishings Retailers
Personal Care Products
Recreational & Leisure Products
Automotive Products
(35.0%) (30.0%) (25.0%) (20.0%) (15.0%) (10.0%) (5.0%) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
May 2012
40
60
80
100
120
140
May-08 Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12
Ind
ex
Dow Jones U.S. Consumer Goods Index Dow Jones Retail Index S&P 500 Index
Recent Equity
Offerings
Equity Markets
Overview
Consumer
and Retail
Industry Stock
Performance
3 of 16
15.7%
25.4%
(8.4%)
Close Date Filing Date Issuer Ticker
Transaction
Type
Gross Proceeds
($mm) Use of Funds
05/09/12 04/25/11 WageWorks Inc WAGE IPO $58.5 General Corp. Purp.
05/03/12 07/01/11 Tilly's Inc TLYS IPO 142.6 General Corp. Purp.
05/03/12 02/28/12 TAL International Group Inc TAL Follow-On 193.8 General Corp. Purp.
04/18/12 12/13/11 Tumi Holdings Inc TUMI IPO 388.7 General Corp. Purp.
04/17/12 04/04/12 Francesca's Holdings Corp FRAN Follow-On 248.4 General Corp. Purp.
03/29/12 12/23/11 Oncothyreon Inc ONTY Follow-On 54.1 General Corp. Purp. and
Reduce Indebtedness
03/28/12 06/10/11 CafePress Inc PRSS IPO 85.5 General Corp. Purp.
03/27/12 03/31/10 Dollar General Corp DG Follow-On 1,300.9 General Corp. Purp.
03/13/12 03/13/12 FleetCor Technologies Inc FLT Follow-On 219.0 General Corp. Purp.
03/02/12 02/28/12 TAL International Group Inc TAL Follow-On 109.3 General Corp. Purp.
02/16/12 12/15/10 Black Diamond Inc BDE Follow-On 58.1 General Corp. Purp. and
Reduce Indebtedness
02/07/12 11/18/10 Sally Beauty Holdings Inc SBH Follow-On 422.0 General Corp. Purp.
01/26/12 01/18/12 Francesca's Holdings Corp FRAN Follow-On 260.7 General Corp. Purp.
12/08/11 12/06/11 Express Inc EXPR Follow-On 368.0 General Corp. Purp.
May 2012
Announced Consumer Transactions Median Consumer Transaction Multiples
Consumer Private Equity Investments and Exits Median LTM Trading Multiples
Last 10 Deals Announced Quarterly Consumer M&A Activity
LTM Deal Statistics
Note: Transactions based on publicly available information
M&A
Overview
Announced
Consumer
and Retail
M&A
Consumer and
Retail M&A
Trends
Median LTM
Trading
Multiples and
Announced
Private Equity
M&A Activity
Announced Target Buyer
5/20/2012 AMC Entertainment Holdings Dalian Wanda Group Corp.
5/17/2012 BIDZ.com, Inc. Glendon Group, Inc.
5/16/2012 Peninsula Gaming LLC Boyd Gaming Corp.
5/15/2012 Majestic Colorado Gaming, LLC Saratoga Harness Racing
5/14/2012 Premiere Global Sports Premiere Global Sports
5/14/2012 Golfsmith International Golf Town USA Holdings
5/11/2012 Montana Decoy, Inc. Flint Holdings
5/11/2012 Skyline Cleaners Inc. WDM Ventures Inc.
5/11/2012 Air Lee Cleaners Inc WDM Ventures Inc.
5/10/2012 Natural Product Laboratories Union Equity Investments
Aggregate Number Transaction Multiples
Value ($bn) of Deals EV / Revenue EV / EBITDA
$43.2 309 0.70x 10.3x
4 of 16
7481
5548 50
37
6572 72
6156 56 54
64
46
66
14
26
15
11 9
4
6
95
1013 13
13
9
19
11
0
20
40
60
80
100
120
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Nu
mb
er o
f T
ra
nsa
cti
on
s__
PEG Acquirer Strategic Acquirer
11.2x 11.0x 10.3x
8.9x 8.4x
10.7x 10.2x
0.00x
0.25x
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
2006 2007 2008 2009 2010 2011 2012 YTD
EV
/ LT
M S
ale
s Mu
ltiple
__E
V / L
TM
EB
ITD
A M
ult
iple
__
EV / LTM EBITDA EV / LTM Sales
59
81
73
97
110
73
30
37
54
24
33
53 5459
71
49
27
59
53
29
0
20
40
60
80
100
120
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD
Nu
mb
er o
f In
ves
tmen
ts'
Number of Investments Number of Exits
$84.9 $79.7
$22.1
$28.6 $29.6
$40.3
$19.9
0
50
100
150
200
250
300
350
400
450
500
$0
$20
$40
$60
$80
$100
2006 2007 2008 2009 2010 2011 2012 YTD
Nu
mb
er o
f Tra
nsa
ctio
ns_
_
Ag
greg
ate
Tra
nsa
cti
on
Valu
e (
$ in
bil
lio
ns)
Aggregate Deal Value # of deals
9.9x 9.9x
9.3x
8.6x
9.6x9.3x
8.8x
9.5x
10.3x 10.4x 10.4x10.2x
8.6x8.9x
7.6x
6.4x
7.7x 7.9x8.2x 8.4x
8.9x
9.5x9.2x
8.2x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
Med
ian
Tra
din
g M
ult
iple
s
Consumer Products Retail
May 2012
Date Effective Borrower Name Description Deal Amount Type Rating Spread
05/24/12 Elo Touch Solutions Computer peripheral equipment $180,000,000 Term Loan B NR / NR 525
05/24/12 Elo Touch Solutions Computer peripheral equipment 90,000,000 Term Loan NR / NR 950
05/23/12 Harbor Freight Tools Catalog and mail-order tools 750,000,000 Term Loan B+ / B1 425
05/23/12 Harbor Freight Tools Catalog and mail-order tools 400,000,000 Revolver/Line >= 1 Yr. B+ / B1 N/A
05/22/12 Lord & Taylor Department stores 450,000,000 Term Loan B NR / NR 350
05/21/12 Esselte Ltd Pens and mechanical pencils 200,000,000 Term Loan B NR / NR N/A
05/11/12 Burlington Coat Factory Family clothing stores 950,500,000 Term Loan B CCC / Caa1 425
05/11/12 K-Swiss Inc Footwear, except rubber 35,000,000 Revolver/Line >= 1 Yr. NR / NR N/A
05/09/12 ViaSat Inc Radio & TV communications equipment 325,000,000 Revolver/Line >= 1 Yr. B+ / B1 250
05/04/12 Affinity Gaming LLC Hotels and motels 35,000,000 Revolver/Line >= 1 Yr. NR / Caa1 N/A
05/04/12 Affinity Gaming LLC Hotels and motels 200,000,000 Term Loan B NR / Caa1 450
05/02/12 Leapfrog Enterprises Inc Games, toys, and children's vehicles 75,000,000 Revolver/Line >= 1 Yr. NR / NR 150
04/30/12 Pep Boys (Manny Moe & Jack) Auto and home supply stores 875,000,000 Other Loan B- / WR N/A
04/26/12 Amistco Separation Products Inc Motor vehicle parts, used 22,290,000 Revolver/Line >= 1 Yr. NR / NR 500
04/26/12 Insight Enterprises Catalog and mail-order houses 350,000,000 Revolver/Line >= 1 Yr. NR / NR 125
04/25/12 Swisher International Inc Sanitary paper products 225,000,000 Revolver/Line >= 1 Yr. NR / NR 150
04/23/12 Meritor Inc Motor vehicle parts and accessories 100,000,000 Term Loan A B- / B3 425
04/23/12 Meritor Inc Motor vehicle parts and accessories 429,000,000 Revolver/Line >= 1 Yr. B- / B3 425
04/23/12 MotorCity Casino Hotels and motels 581,900,000 Term Loan B NR / NR 475
04/23/12 MotorCity Casino Hotels and motels 20,000,000 Revolver/Line >= 1 Yr. NR / NR 350
04/20/12 Baby Jogger LLC Games, toys, and children's vehicles 36,000,000 Term Loan NR / NR 550
04/20/12 Baby Jogger LLC Games, toys, and children's vehicles 7,000,000 Revolver/Line >= 1 Yr. NR / NR 550
04/20/12 Oxbow Steel International LLC Home furnishings 80,000,000 Revolver/Line >= 1 Yr. NR / NR N/A
04/20/12 SC Johnson & Son Polishes and sanitation goods 500,000,000 Revolver/Line >= 1 Yr. A- / NR 100
Key Retail
Credit Statistics
Recent
Consumer and
Retail Debt
Offerings
Average Secondary Spread
Average Spread on Retail Loans2
Credit Statistics
Quarterly Retail Loan Volume1
Debt Market
Overview
5 of 16
$0
$2
$4
$6
$8
$10
$12
4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11
Lo
an
Vo
lum
e b
y Q
ua
rte
r (
$ i
n b
illi
on
s)_
__
Pro Rata Institutional
L + 0
L + 100
L + 200
L + 300
L + 400
L + 500
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q12
Av
era
ge S
prea
d O
ver L
IBO
R_
_
Revolving Credit / Term Loan A Weighted-Average Institutional
L + 0
L + 200
L + 400
L + 600
L + 800
L + 1000
L + 1200
Av
era
ge S
prea
d O
ver L
IBO
R
0.0x
2.0x
4.0x
6.0x
8.0x
Debt/EBITDA Senior
Debt/EBITDA
EBITDA/Cash
Interest
EBITDA -
Capex/Cash Interest
EB
ITD
A M
ult
iple
2007 2008 2009 2010 2011 2012 YTD3
(1) Quarterly retail loan volume not currently available for 1Q12.
(2) Revolving Credit / Term Loan A data not currently available for 1Q12.
(3) EBITDA / Cash Interest and EBITDA – Capex / Cash Interest data not currently available for 2012 YTD.
Consumer and Retail
Industry Update
May 2012
6 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 5/21/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Consumer Products
Apparel & Footwear
Carter's, Inc. CRI $50.76 88.6% $2,992 $236 $301 $2,927 $2,192 $234 21.2% 13.0% 33.5% 10.7% 26.3x 1.34x 12.5x 1.23x 9.4x
Cherokee Inc. CHKE 11.61 60.3% 97 7 7 97 26 12 (16.8%) (10.9%) 100.0% 47.4% 13.1x 3.78x 8.0x 3.70x NA
Coach, Inc. COH 67.89 85.2% 19,510 23 930 18,603 4,640 1,602 13.8% 12.8% 72.6% 34.5% 20.3x 4.01x 11.6x 3.53x 9.8x
Columbia Sportswear Company COLM 47.89 72.1% 1,617 0 253 1,364 1,694 178 11.7% 9.4% 43.3% 10.5% 17.3x 0.81x 7.7x 0.79x 7.2x
Crocs, Inc. CROX 16.42 50.6% 1,476 35 207 1,305 1,046 179 23.1% 16.7% 53.7% 17.2% 12.5x 1.25x 7.3x 1.07x 6.1x
Deckers Outdoor Corp. DECK 55.26 46.5% 2,127 0 229 1,898 1,419 300 35.1% 25.0% 48.6% 21.2% 11.5x 1.34x 6.3x 1.19x 6.3x
Delta Apparel Inc. DLA 14.32 72.1% 121 133 1 253 492 9 6.1% 11.4% 19.1% 1.7% NM 0.51x 29.8x 0.50x NA
G-III Apparel Group, Ltd. GIII 24.09 55.4% 481 30 25 486 1,231 94 15.8% 20.1% 30.1% 7.6% 9.8x 0.40x 5.2x 0.37x 4.7x
Gildemeister AG GIL 13.01 80.2% 759 68 134 693 1,777 141 17.0% (1.3%) 46.9% 8.0% 13.8x 0.39x 4.9x NA NA
Hanesbrands Inc. HBI 25.43 76.2% 2,481 2,141 35 4,587 4,609 475 3.9% 3.8% 31.2% 10.3% 13.1x 1.00x 9.7x 0.95x 7.9x
Iconix Brand Group, Inc. ICON 15.41 59.2% 1,092 631 163 1,561 366 235 3.6% 20.0% 100.0% 64.3% 9.5x 4.27x 6.6x 4.41x 6.8x
The Jones Group Inc. JNY 9.41 70.8% 773 858 147 1,483 3,760 257 1.2% 2.1% 36.1% 6.8% 31.5x 0.39x 5.8x 0.38x 5.0x
Kenneth Cole Productions Inc. KCP 14.96 91.2% 274 0 49 225 478 23 2.8% 0.4% 39.1% 4.9% 21.9x 0.47x 9.7x 0.43x 6.4x
K-Swiss Inc. KSWS 3.06 26.0% 109 13 29 93 265 (52) 18.8% (4.3%) 34.1% NM NM 0.35x NM 0.38x NM
Lacrosse Footwear Inc. BOOT 11.51 74.5% 75 9 0 83 139 11 (1.5%) 2.6% 38.3% 8.1% 18.4x 0.60x 7.4x NA NA
Fifth & Pacific Companies, Inc. LIZ 0.00 0.0% 0 398 80 318 1,505 11 9.9% (25.7%) 54.0% 0.7% NA 0.21x 28.6x 0.20x 1.9x
Maidenform Brands, Inc. MFB 20.10 65.7% 473 69 30 512 600 54 4.0% 11.8% 29.8% 9.0% 19.1x 0.85x 9.5x 0.82x 6.6x
Nike Inc. NKE 107.23 93.4% 49,151 369 3,198 46,322 23,424 3,459 16.1% 6.2% 43.8% 14.8% 22.4x 1.98x 13.4x 1.78x 12.3x
Oxford Industries Inc. OXM 40.72 77.4% 672 106 13 765 759 98 25.7% 2.8% 54.5% 12.9% 23.0x 1.01x 7.8x 0.90x 7.2x
Perry Ellis International Inc. PERY 18.36 58.3% 269 198 28 438 958 63 11.6% 5.0% 32.8% 6.6% 14.7x 0.46x 6.9x 0.43x 5.7x
PVH Corp. PVH 75.98 81.7% 5,228 1,916 233 6,911 5,891 766 27.0% 33.2% 52.0% 13.0% 17.4x 1.17x 9.0x 1.15x 8.0x
Ralph Lauren Corporation RL 146.30 80.2% 13,508 274 1,187 12,595 6,860 1,278 21.2% 11.0% 58.3% 18.6% 20.5x 1.84x 9.9x 1.66x 8.8x
Quiksilver Inc. ZQK 2.78 49.8% 457 740 94 1,103 1,976 167 7.9% (3.7%) 52.0% 8.4% NM 0.56x 6.6x 0.52x 5.1x
Rocky Brands, Inc. RCKY 12.50 87.2% 94 22 2 113 241 24 (3.4%) (1.2%) 36.0% 9.9% 11.0x 0.47x 4.7x 0.44x 4.2x
Skechers USA Inc. SKX 17.22 90.6% 861 139 392 608 1,488 (69) (25.5%) 2.0% 39.9% NM NM 0.41x NM 0.39x 10.7x
Steven Madden, Ltd. SHOO 40.11 87.8% 1,778 0 67 1,711 1,069 175 59.6% 32.1% 36.4% 16.4% 17.2x 1.60x 9.8x 1.38x 8.1x
Summer Infant, Inc. SUMR 3.38 37.8% 60 69 2 128 243 16 16.2% 20.5% 34.1% 6.7% 16.0x 0.53x 7.9x 0.48x 5.5x
Taiga Building Products Ltd. TBL 0.00 0.0% 19 214 0 233 947 31 (3.1%) (3.0%) 9.6% 3.3% 5.0x 0.25x 7.4x NA NA
True Religion Apparel Inc. TRLG 28.24 74.7% 714 0 204 510 433 93 14.0% 15.6% 64.7% 21.4% 15.3x 1.18x 5.5x 1.07x 5.2x
Under Armour, Inc. UA 93.21 90.6% 4,859 76 107 4,828 1,544 204 34.6% 26.2% 48.1% 13.2% 49.1x 3.13x 23.6x 2.55x 18.6x
V.F. Corporation VFC 137.10 87.8% 15,021 2,514 326 17,210 10,057 1,491 27.1% 10.2% 45.5% 14.8% 17.0x 1.71x 11.5x 1.53x 9.6x
Vera Bradley, Inc. VRA 22.12 43.9% 897 25 5 917 461 106 25.9% NA 55.9% 22.9% 15.5x 1.99x 8.7x 1.68x 6.9x
Warnaco Group Inc. WRC 43.89 72.3% 1,801 287 224 1,864 2,467 289 4.1% 6.7% 43.6% 11.7% 15.7x 0.76x 6.5x 0.73x 5.6x
Weyco Group Inc. WEYS 23.53 86.3% 257 39 17 278 281 28 20.5% 8.7% 39.1% 9.8% 16.6x 0.99x 10.1x 0.93x NA
Wolverine World Wide Inc. WWW 41.27 93.5% 2,008 70 123 1,955 1,401 174 8.2% 5.7% 39.3% 12.4% 17.2x 1.40x 11.3x 1.29x 9.4x
Mean 67.6% 3,775 335 253 3,857 2,478 347 13.1% 8.4% 45.6% 14.5% 17.7x 1.24x 10.0x 1.21x 7.5x
Median 74.5% 773 70 94 917 1,231 141 13.8% 7.7% 43.3% 10.7% 16.8x 0.99x 8.0x 0.94x 6.9x
Automotive Products
America's Car-Mart Inc. CRMT $42.83 88.8% $411 $85 $0 $495 $420 $55 15.2% 12.2% 29.1% 13.2% 14.0x 1.18x 8.9x 1.05x NA
Asbury Automotive Group, Inc. ABG 26.40 89.1% 832 920 4 1,747 4,342 173 7.4% 2.5% 17.0% 4.0% 13.8x 0.40x 10.1x 0.38x 8.9x
AutoNation Inc. AN 35.03 84.3% 4,280 3,935 76 8,139 14,178 663 9.6% 5.6% 16.5% 4.7% 17.3x 0.57x 12.3x 0.54x 11.7x
AutoZone Inc. AZO 368.55 92.3% 14,363 3,606 103 17,866 8,482 1,798 7.7% 7.7% 51.3% 21.2% 16.4x 2.11x 9.9x 1.97x 9.2x
CarMax Inc. KMX 28.47 80.9% 6,497 5,053 443 11,107 10,266 783 11.6% 13.7% 16.0% 7.6% 15.9x 1.08x 14.2x 1.02x 13.0x
Group 1 Automotive Inc. GPI 52.27 87.2% 1,130 1,387 21 2,495 6,335 241 10.6% 7.0% 15.8% 3.8% 13.7x 0.39x 10.4x 0.35x 9.6x
Last Twelve Months (LTM) EV / LTM EV / 2012ERevenue Growth LTM Margins
Consumer and Retail
Industry Update
May 2012
7 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 5/21/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Automotive Products (Cont.)
Lithia Motors Inc. LAD $24.32 86.9% $633 $666 $9 $1,289 $2,875 $142 30.7% 13.8% 16.8% 4.9% 10.1x 0.45x 9.1x 0.40x 8.7x
Monro Muffler Brake Inc. MNRO 38.37 80.6% 1,184 46 2 1,229 666 113 5.1% 12.6% 40.6% 17.0% 23.5x 1.85x 10.9x 1.67x 9.4x
O'Reilly Automotive Inc. ORLY 95.76 89.4% 12,074 797 575 12,297 5,935 1,086 7.9% 13.2% 49.4% 18.3% 23.1x 2.07x 11.3x 1.93x 10.2x
Penske Automotive Group, Inc. PAG 24.69 89.5% 2,230 2,677 32 4,875 12,047 371 13.1% 4.3% 15.7% 3.1% 11.9x 0.40x 13.1x 0.37x 12.1x
Pep Boys - Manny, Moe & Jack PBY 11.34 73.4% 599 308 58 849 2,064 148 3.8% 2.3% 29.2% 7.2% 21.0x 0.41x 5.7x 0.39x 4.7x
Sonic Automotive Inc. SAH 15.04 79.0% 799 1,504 2 2,301 8,041 266 12.4% 6.4% 15.3% 3.3% 10.9x 0.29x 8.7x 0.26x 7.8x
Mean 85.1% 3,753 1,749 111 5,391 6,304 487 11.3% 8.4% 26.1% 9.0% 16.0x 0.93x 10.4x 0.86x 9.6x
Median 87.0% 1,157 1,153 27 2,398 6,135 253 10.1% 7.3% 16.9% 6.1% 15.0x 0.51x 10.2x 0.47x 9.4x
Home & Office Furniture & Furnishings
Furniture Brands International Inc. FBN $1.39 28.7% $78 $77 $15 $140 $1,097 $2 (3.4%) (12.2%) 24.1% 0.1% NM 0.13x 88.3x 0.13x 36.5x
Herman Miller Inc. MLHR 18.60 64.3% 1,078 250 229 1,100 1,745 177 14.1% (1.6%) 33.6% 10.2% 13.5x 0.63x 6.2x 0.62x 5.9x
HNI Corp. HNI 22.48 76.9% 1,024 216 66 1,174 1,883 131 9.5% (6.6%) 34.6% 7.0% 21.5x 0.62x 9.0x 0.58x 7.4x
Hooker Furniture Corp. HOFT 11.70 83.6% 126 0 40 86 223 11 3.3% (5.2%) 22.0% 5.0% 25.0x 0.38x 7.7x 0.37x 6.1x
Kid Brands, Inc. KID 2.15 37.4% 47 48 1 94 248 6 (9.5%) 0.6% 25.2% 2.3% NM 0.38x 16.7x 0.36x 4.5x
Kimball International, Inc. KBAL.B 7.02 97.6% 193 0 61 133 1,135 40 (6.2%) (3.8%) 17.5% 3.5% 45.7x 0.12x 3.4x 0.12x NA
Knoll Inc. KNL 13.61 62.5% 635 228 12 851 898 103 5.0% (5.5%) 32.2% 11.5% 11.4x 0.95x 8.3x 0.93x 7.5x
Leggett & Platt, Incorporated LEG 20.25 78.0% 2,839 1,078 261 3,655 3,687 392 7.2% (1.0%) 18.4% 10.6% 19.5x 0.99x 9.3x 0.95x 8.2x
Libbey Inc. LBY 15.01 89.2% 308 397 33 673 827 118 2.2% 1.8% 21.6% 14.3% 12.5x 0.81x 5.7x 0.79x 5.5x
Natuzzi SpA NTZ 2.73 65.6% 150 39 94 94 486 (8) (6.2%) (9.9%) 33.0% NM NM 0.19x NM NA NA
Sealy Corporation ZZ 1.67 60.1% 169 781 98 851 1,237 119 2.0% (4.4%) 39.0% 9.6% NM 0.69x 7.2x 0.67x 6.4x
Steelcase Inc. SCS 8.25 69.1% 1,048 292 191 1,148 2,750 184 12.8% (4.8%) 30.4% 6.7% 19.2x 0.42x 6.2x 0.40x 5.4x
Tempur Pedic International Inc. TPX 48.06 55.0% 3,053 566 134 3,485 1,476 386 25.4% 19.8% 52.7% 26.1% 14.3x 2.36x 9.0x 2.03x 7.5x
The Dixie Group, Inc. DXYN 4.25 88.7% 54 74 0 127 267 13 8.2% 0.9% 24.2% 4.9% NM 0.48x 9.7x 0.45x NA
Mean 68.3% 771 289 88 972 1,283 119 4.6% (2.3%) 29.2% 8.6% 20.3x 0.65x 14.4x 0.64x 9.2x
Median 67.4% 251 222 63 762 1,116 110 4.2% (4.1%) 27.8% 7.0% 19.2x 0.55x 8.3x 0.58x 6.4x
Household Products
Central Garden & Pet Co. CENT $9.32 85.3% $456 $567 $28 $995 $1,630 $95 3.2% (0.9%) 29.2% 5.9% 31.9x 0.61x 10.4x 0.59x 8.2x
The Clorox Company CLX 68.29 90.5% 8,882 2,850 303 11,429 5,409 1,073 4.5% (0.2%) 42.4% 19.8% 16.9x 2.11x 10.7x 2.04x 10.0x
iRobot Corporation IRBT 21.49 56.1% 590 0 182 408 457 54 10.8% 14.2% 40.0% 11.7% 18.1x 0.89x 7.6x 0.82x 6.7x
Jarden Corp. JAH 38.55 89.2% 3,071 3,453 481 6,042 6,692 787 5.9% 8.1% 28.0% 11.8% 15.3x 0.90x 7.7x 0.89x 7.2x
Newell Rubbermaid Inc. NWL 17.95 92.1% 5,204 2,313 190 7,327 5,923 902 5.3% (1.7%) 37.7% 15.2% 38.3x 1.24x 8.1x 1.22x 7.9x
Prestige Brands Holdings, Inc. PBH 13.89 77.8% 701 1,124 19 1,806 441 114 31.1% 14.4% 51.6% 25.7% 19.0x 4.09x 15.9x 2.91x 8.7x
Snap-on Inc. SNA 59.54 92.5% 3,460 980 157 4,282 3,032 555 9.5% 2.9% 47.6% 18.3% 12.0x 1.41x 7.7x 1.40x 7.4x
Stanley Black & Decker, Inc. SWK 67.66 85.4% 11,563 3,682 893 14,352 10,668 1,599 13.0% 35.7% 36.9% 15.0% 17.5x 1.35x 9.0x 1.24x 6.9x
Toro Co. TTC 67.88 92.9% 2,032 251 72 2,211 1,925 241 10.5% 2.0% 33.6% 12.5% 17.7x 1.15x 9.2x 1.09x 9.3x
Tupperware Brands Corporation TUP 53.76 74.7% 3,006 691 106 3,591 2,588 435 8.8% 7.5% 66.8% 16.8% 14.6x 1.39x 8.3x 1.34x 7.7x
Whirlpool Corp. WHR 58.56 69.7% 4,524 2,489 583 6,430 18,614 1,464 0.6% 1.4% 13.8% 7.9% 14.7x 0.35x 4.4x 0.34x 4.3x
Mean 82.4% 3,953 1,673 274 5,352 5,216 665 9.4% 7.6% 38.9% 14.6% 19.6x 1.41x 9.0x 1.26x 7.7x
Median 85.4% 3,071 1,124 182 4,282 3,032 555 8.8% 2.9% 37.7% 15.0% 17.5x 1.24x 8.3x 1.22x 7.7x
Personal Care Products
All for One Midmarket AG ACV $9.03 86.4% $44 $34 $31 $47 $102 $10 25.2% 11.9% 23.5% 9.8% 8.4x 0.46x 4.7x NA NA
Avon Products Inc. AVP 16.77 55.6% 7,241 3,251 1,009 9,483 11,427 1,518 3.4% 3.3% 62.7% 13.3% 18.5x 0.83x 6.2x 0.85x 9.7x
Last Twelve Months (LTM) LTM Margins EV / LTM EV / 2012ERevenue Growth
Consumer and Retail
Industry Update
May 2012
8 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 5/21/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Personal Care Products (Cont.)
Elizabeth Arden, Inc. RDEN $35.52 88.4% $1,016 $250 $58 $1,208 $1,226 $129 6.7% 3.9% 49.3% 10.5% 18.0x 0.98x 9.4x 0.94x 8.0x
Estee Lauder Companies Inc. EL 55.06 83.9% 21,404 1,210 1,193 21,421 9,523 1,658 10.9% 7.6% 79.2% 17.4% 25.9x 2.25x 12.9x 2.10x 11.3x
Herbalife Ltd. HLF 45.96 63.0% 5,370 236 306 5,301 3,624 665 24.5% 16.8% 47.5% 18.3% 13.2x 1.46x 8.0x NA 7.3x
Inter Parfums Inc. IPAR 16.09 64.9% 492 17 27 481 647 88 36.4% 16.1% 54.6% 13.6% 14.0x 0.74x 5.5x 0.73x 5.2x
Kimberly-Clark Corporation KMB 78.64 98.3% 30,836 6,945 873 36,908 21,058 3,999 5.6% 3.3% 32.1% 19.0% 18.2x 1.75x 9.2x 1.73x 9.1x
Medifast Inc. MED 17.65 65.1% 274 5 52 227 313 32 15.3% 39.6% 75.0% 10.3% 15.3x 0.73x 7.0x 0.65x 5.9x
Nu Skin Enterprises Inc. NUS 43.20 69.7% 2,726 124 290 2,560 1,810 314 15.4% 13.3% 83.6% 17.3% 15.0x 1.41x 8.2x 1.31x 7.2x
Obagi Medical Products, Inc. OMPI 13.00 94.5% 244 0 38 205 118 27 4.2% 5.1% 79.0% 23.1% 15.7x 1.73x 7.5x 1.60x 5.3x
Procter & Gamble Co. PG 63.39 93.3% 173,695 33,112 3,991 202,816 85,374 19,155 7.3% 2.4% 49.4% 22.4% 19.4x 2.38x 10.6x 2.36x 10.2x
Revlon, Inc. REV 14.90 77.1% 778 1,229 88 1,919 1,379 218 2.2% 1.0% 64.1% 15.8% 15.4x 1.39x 8.8x 1.37x 6.9x
Sally Beauty Holdings Inc. SBH 25.94 93.5% 4,843 1,358 65 6,136 3,428 536 11.1% 9.1% 49.1% 15.6% 22.2x 1.79x 11.4x 1.67x 9.9x
Schiff Nutrition International Inc. WNI 16.31 93.9% 477 0 26 451 243 27 15.3% 7.6% 43.5% 11.2% 32.6x 1.85x 16.5x 1.53x 12.1x
Ulta Salon, Cosmetics & Fragrance, Inc. ULTA 87.84 90.9% 5,524 0 254 5,270 1,776 272 22.1% 17.9% 34.7% 15.3% 46.2x 2.97x 19.4x 2.44x 14.9x
USANA Health Sciences Inc. USNA 39.83 94.5% 592 0 71 521 592 89 9.3% 11.7% 82.6% 15.1% 11.5x 0.88x 5.8x 0.82x 5.5x
Mean 82.1% 15,972 2,986 523 18,435 8,915 1,796 13.4% 10.7% 56.9% 15.5% 19.3x 1.48x 9.4x 1.43x 8.6x
Median 87.4% 1,871 180 79 2,239 1,578 245 11.0% 8.4% 52.0% 15.5% 16.9x 1.44x 8.5x 1.45x 8.0x
Recreational & Leisure Products
Arctic Cat Inc. ACAT $36.63 77.2% $463 $0 $76 $387 $585 $60 26.0% 1.3% 22.3% 10.2% 21.3x 0.66x 6.5x 0.58x 5.3x
Brunswick Corporation BC 21.43 78.2% 1,914 697 371 2,240 3,736 311 5.4% (3.0%) 23.4% 8.3% 23.5x 0.60x 7.2x 0.56x 6.2x
Callaway Golf Co. ELY 5.42 74.3% 352 86 52 387 886 1 (6.8%) (4.7%) 37.0% 0.1% NM 0.44x 724.1x 0.42x 11.1x
Cybex International Inc. CYBI 1.75 48.6% 30 24 3 52 146 13 14.5% 2.2% 34.8% 8.8% 0.9x 0.35x 4.0x NA NA
Harley-Davidson, Inc. HOG 47.21 86.9% 10,790 5,570 1,064 15,296 5,516 1,150 13.1% (2.4%) 37.4% 20.8% 18.4x 2.77x 13.3x 2.95x 11.6x
Hasbro Inc. HAS 34.41 72.4% 4,462 1,572 904 5,130 4,262 746 6.5% 2.7% 48.2% 17.5% 12.6x 1.20x 6.9x 1.17x 6.5x
Head NV WBAG:HEAD 1.17 95.9% 98 104 30 172 339 24 (1.3%) 1.3% 40.9% 7.2% NM 0.51x 7.1x NA NA
JAKKS Pacific, Inc. JAKK 18.61 91.4% 481 93 255 319 679 40 (8.5%) (8.3%) 31.1% 5.9% NM 0.47x 8.0x 0.43x 4.1x
Johnson Outdoors Inc. JOUT 18.18 86.6% 171 51 30 192 409 24 0.5% 0.8% 39.4% 6.0% 6.0x 0.47x 7.9x NA NA
LeapFrog Enterprises Inc. LF 9.84 91.3% 657 0 135 522 487 50 13.4% 4.2% 41.9% 10.3% 20.1x 1.07x 10.4x 1.00x 8.4x
Life Time Fitness Inc. LTM 43.77 83.1% 1,814 650 11 2,454 1,041 285 11.5% 9.6% 39.8% 27.4% 18.5x 2.36x 8.6x 2.12x 7.3x
Marine Products Corp. MPX 5.80 83.5% 219 0 19 201 117 8 13.0% (1.7%) 18.8% 6.5% 29.0x 1.72x 26.3x 1.44x NA
Mattel, Inc. MAT 31.25 90.3% 10,643 1,550 785 11,408 6,243 1,226 5.3% 2.6% 50.4% 19.6% 14.4x 1.83x 9.3x 1.75x 8.5x
Nautilus Inc. NLS 2.73 89.8% 84 0 20 64 183 8 7.2% (4.1%) 43.8% 4.5% 21.0x 0.35x 7.8x 0.31x NA
Navarre Corp. NAVR 1.72 82.7% 64 0 2 62 488 5 (2.2%) (8.8%) 12.0% 1.1% NM 0.13x 11.5x 0.13x 6.4x
Polaris Industries, Inc. PII 75.36 90.1% 5,176 108 286 4,998 2,819 438 29.1% 14.3% 28.8% 15.5% 22.3x 1.77x 11.4x 1.58x 9.6x
Pool Corp. POOL 35.78 88.4% 1,699 300 21 1,978 1,842 143 11.2% 2.3% 29.6% 7.8% 22.9x 1.07x 13.8x 0.99x 11.9x
Smith & Wesson Holding Corporation SWHC 6.59 76.5% 428 53 22 459 434 37 26.0% 10.9% 29.0% 8.5% NM 1.06x 12.4x 1.02x NA
Steinway Musical Instruments Inc. LVB 23.88 81.5% 295 71 44 323 351 29 8.9% (1.1%) 30.1% 8.2% NM 0.92x 11.2x 0.89x 7.2x
Sturm, Ruger & Co. Inc. RGR 39.99 68.5% 766 0 96 670 366 88 39.4% 21.8% 35.6% 24.0% 16.2x 1.83x 7.6x 1.59x 6.3x
THQ Inc. THQI 0.64 15.0% 44 100 76 68 831 (199) 24.9% 0.0% 57.4% NM NM 0.08x NM 0.15x NM
Mean 78.7% 1,936 525 205 2,256 1,513 214 11.3% 1.9% 34.8% 10.9% 17.7x 1.03x 45.8x 1.06x 7.9x
Median 83.1% 463 86 52 387 585 40 11.2% 1.3% 35.6% 8.4% 19.3x 0.92x 9.0x 1.00x 7.3x
Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2012E
Consumer and Retail
Industry Update
May 2012
9 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 5/21/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Retail
Apparel & Footwear Retail
Abercrombie & Fitch Co. ANF $36.54 46.7% $3,016 $66 $360 $2,722 $4,243 $509 17.3% 8.9% 60.1% 12.0% 30.7x 0.64x 5.3x 0.57x 3.7x
Aéropostale, Inc. ARO 18.68 81.0% 1,518 135 203 1,450 2,370 184 (1.5%) 6.6% 33.1% 7.8% 23.9x 0.61x 7.9x 0.58x 5.9x
American Apparel, Inc. APP 0.84 69.5% 89 164 7 246 564 9 7.0% 1.0% 53.4% 1.6% NM 0.44x 26.7x NA NA
American Eagle Outfitters, Inc. AEO 20.33 96.2% 3,981 0 745 3,236 3,160 395 6.5% 2.3% 35.7% 12.5% 26.4x 1.02x 8.2x 0.95x 6.2x
ANN INC ANN 26.71 89.6% 1,303 0 106 1,197 2,249 245 10.9% 3.5% 54.5% 10.9% 15.8x 0.53x 4.9x 0.49x 4.3x
Ascena Retail Group Inc. ASNA 19.27 85.2% 2,963 0 430 2,534 3,079 432 8.3% 28.4% 53.3% 14.0% 16.1x 0.82x 5.9x 0.77x 5.3x
Bebe Stores, Inc. BEBE 6.14 64.1% 518 0 193 325 532 43 10.0% (6.2%) 56.6% 8.1% 38.4x 0.61x 7.6x 0.58x 6.6x
Brown Shoe Co. Inc. BWS 11.98 99.7% 513 323 40 796 2,590 109 2.3% 4.6% 38.4% 4.2% NM 0.31x 7.3x 0.31x 5.7x
Buckle Inc. BKE 42.19 84.4% 2,022 0 220 1,802 1,087 276 11.4% 9.3% 49.7% 25.4% 12.9x 1.66x 6.5x 1.56x 6.2x
Body Central Corp. BODY 14.85 48.0% 240 0 44 196 305 38 17.8% NA 34.7% 12.3% 12.0x 0.64x 5.2x 0.56x 4.5x
Cabela's Inc. CAB 35.75 85.9% 2,515 1,933 157 4,291 2,848 332 5.9% 3.7% 43.0% 11.7% 16.6x 1.51x 12.9x 1.39x 11.4x
Casual Male Retail Group, Inc. CMRG 2.84 61.5% 138 0 6 132 398 31 0.8% (2.9%) 46.4% 7.8% 3.3x 0.33x 4.2x 0.31x NA
Cato Corp. CATO 28.80 93.6% 840 0 283 557 933 122 (0.4%) 2.4% 38.5% 13.1% 12.8x 0.60x 4.6x 0.58x 4.6x
Charming Shoppes Inc. CHRS 7.33 99.6% 856 138 169 826 1,992 83 (3.4%) (7.0%) 50.1% 4.2% NM 0.41x 10.0x 0.42x 7.9x
Chico's FAS Inc. CHS 15.09 91.5% 2,469 0 341 2,129 2,310 345 17.8% 13.4% 55.7% 14.9% 18.4x 0.92x 6.2x 0.81x 5.4x
Christopher & Banks Corporation CBK 1.46 20.5% 54 0 48 5 446 (34) (0.5%) (5.6%) 24.3% NM NM 0.01x NM 0.01x NM
Citi Trends CTRN 14.26 83.9% 208 0 66 143 649 14 3.0% 8.4% 33.9% 2.2% NM 0.22x 10.1x 0.21x 4.0x
Coldwater Creek Inc. CWTR 0.83 39.5% 101 42 51 92 773 (34) (21.2%) (9.0%) 29.7% NM NM 0.12x NM 0.12x NM
Collective Brands, Inc. PSS 21.26 99.3% 1,295 610 181 1,723 3,462 203 2.5% 0.2% 31.9% 5.9% NM 0.50x 8.5x 0.49x 6.7x
Destination Maternity Corporation DEST 19.40 91.1% 259 26 28 257 550 48 2.7% 0.2% 53.3% 8.7% 13.2x 0.47x 5.4x NA NA
DSW Inc. DSW 55.80 95.1% 2,446 0 371 2,075 2,079 287 11.6% 11.9% 40.2% 13.8% 9.6x 1.00x 7.2x 0.89x 6.7x
Express Inc. EXPR 23.09 87.9% 2,052 199 180 2,070 2,102 341 8.0% 5.4% 44.7% 16.2% 13.9x 0.98x 6.1x 0.90x 5.4x
Finish Line Inc. FINL 21.78 83.3% 1,132 0 307 824 1,369 164 11.4% 4.7% 41.3% 11.9% 13.7x 0.60x 5.0x 0.57x 5.0x
Foot Locker, Inc. FL 30.42 94.3% 4,621 135 909 3,847 5,749 605 10.1% 3.8% 44.0% 10.5% 15.0x 0.67x 6.4x 0.63x 5.4x
Gap Inc. GPS 26.51 90.7% 13,016 1,625 2,047 12,594 14,741 2,049 0.8% 1.1% 36.3% 13.9% 16.3x 0.85x 6.1x 0.82x 5.9x
Genesco Inc. GCO 69.18 87.6% 1,689 41 54 1,676 2,292 208 28.1% 13.9% 50.4% 9.1% 19.9x 0.73x 8.1x 0.65x 6.9x
Guess? Inc. GES 24.47 53.5% 2,195 13 496 1,712 2,688 497 8.1% 8.7% 43.3% 18.5% 8.6x 0.64x 3.4x 0.62x 3.9x
Hot Topic Inc. HOTT 9.55 89.0% 403 0 70 334 708 68 0.2% (3.1%) 35.9% 9.6% 42.8x 0.47x 4.9x 0.45x 5.3x
Jos. A Bank Clothiers Inc. JOSB 46.15 80.8% 1,285 0 327 957 980 186 14.2% 12.1% 62.1% 19.0% 13.2x 0.98x 5.2x 0.89x 4.6x
Limited Brands, Inc. LTD 45.86 88.5% 13,451 3,598 935 16,114 10,301 1,850 4.1% 5.2% 45.4% 18.0% 17.5x 1.56x 8.7x 1.55x 7.7x
Lululemon Athletica Inc. LULU 69.11 85.2% 9,946 0 409 9,537 1,001 317 40.6% 41.5% 56.9% 31.7% NM 9.53x 30.1x 7.01x 23.2x
The Men's Wearhouse, Inc. MW 35.69 87.1% 1,817 0 125 1,692 2,383 268 13.3% 6.5% 44.0% 11.2% 15.5x 0.71x 6.3x 0.67x 5.5x
New York & Company Inc. NWY 3.47 59.3% 217 0 29 187 945 8 (7.7%) (5.0%) 34.6% 0.9% NM 0.20x 22.6x 0.20x NA
Pacific Sunwear of California Inc. PSUN 1.49 41.5% 104 74 22 156 836 (20) (9.7%) (11.6%) 22.6% NM NM 0.19x NM 0.19x NM
Ross Stores Inc. ROST 60.35 93.1% 13,672 150 742 13,080 8,891 1,282 11.1% 10.3% 27.6% 14.4% 19.8x 1.47x 10.2x 1.35x 8.8x
rue21, Inc. RUE 27.58 73.9% 675 0 72 603 760 90 19.8% 24.8% 37.4% 11.8% 17.8x 0.79x 6.7x 0.66x 5.9x
Shoe Carnival Inc. SCVL 21.55 94.9% 440 0 92 347 787 59 5.1% 6.4% 29.4% 7.5% 15.9x 0.44x 5.9x 0.40x 5.3x
Stage Stores Inc. SSI 16.06 83.1% 493 50 22 522 1,531 114 3.7% 0.8% 27.4% 7.4% 16.7x 0.34x 4.6x 0.33x 4.2x
Stein Mart Inc. SMRT 6.51 63.3% 282 0 117 165 1,160 45 (2.0%) (3.6%) 25.4% 3.9% 18.5x 0.14x 3.6x 0.14x 3.2x
The Children’s Place Retail Stores, Inc. PLCE 46.12 80.1% 1,127 0 205 922 1,724 158 2.4% 1.8% 38.1% 9.1% 16.2x 0.53x 5.9x 0.51x 4.6x
The Talbots Inc. TLB 2.36 49.2% 166 138 9 296 1,141 (25) (5.9%) (8.6%) 29.2% NM NM 0.26x NM 0.27x NA
The TJX Companies, Inc. TJX 40.33 94.2% 29,912 775 1,739 28,948 23,769 3,189 7.3% 7.7% 27.7% 13.4% 18.8x 1.22x 9.1x 1.13x 8.1x
Urban Outfitters Inc. URBN 26.16 77.2% 3,786 0 248 3,538 2,519 378 8.7% 11.3% 41.3% 15.0% 21.8x 1.40x 9.4x 1.24x 7.6x
Wet Seal Inc. WTSL.A 3.07 58.7% 277 0 157 120 620 49 6.7% 1.5% 48.7% 7.9% 19.4x 0.19x 2.5x 0.19x 2.6x
Zumiez, Inc. ZUMZ 33.35 85.5% 1,045 0 171 873 580 85 17.0% 12.5% 36.3% 14.7% 26.1x 1.51x 10.2x 1.33x 8.8x
Mean 78.0% 2,914 227 301 2,841 2,804 347 6.8% 5.0% 41.0% 11.4% 18.2x 0.88x 8.2x 0.80x 6.3x
Median 85.2% 1,132 0 171 922 1,531 164 6.7% 4.2% 40.2% 11.7% 16.5x 0.61x 6.4x 0.58x 5.5x
Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2012E
Consumer and Retail
Industry Update
May 2012
10 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 5/21/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Catalog & Specialty Distribution
HSN, Inc. HSNI $37.28 93.2% $2,149 $239 $309 $2,078 $3,214 $267 6.3% 5.0% 34.6% 8.3% 17.5x 0.65x 7.8x 0.62x 6.5x
Insight Enterprises Inc. NSIT 16.00 69.1% 711 140 133 718 5,312 196 6.3% 4.4% 13.5% 3.7% 6.9x 0.14x 3.7x 0.13x 3.3x
Liberty Interactive Corporation LINT.A 17.47 88.2% 9,746 6,183 794 15,135 9,771 1,813 13.7% 0.2% 36.5% 18.6% 17.3x 1.55x 8.3x 1.48x 7.7x
Nutrisystem, Inc. NTRI 10.42 66.2% 286 30 66 249 397 27 (17.8%) (14.4%) 48.4% 6.7% 27.0x 0.63x 9.3x 0.58x 6.2x
PC Connection, Inc. PCCC 8.93 69.1% 236 2 50 188 2,140 57 5.5% 8.9% 12.7% 2.7% 8.0x 0.09x 3.3x 0.08x 2.8x
PC Mall Inc. MALL 5.36 61.0% 64 83 9 138 1,462 18 3.3% 5.3% 13.3% 1.2% 35.1x 0.09x 7.6x 0.09x 4.2x
Systemax Inc. SYX 13.24 63.3% 483 9 111 381 3,666 86 1.7% 6.2% 14.5% 2.3% 10.2x 0.10x 4.4x 0.10x NA
ValueVision Media Inc. VVTV 1.58 18.1% 77 38 43 73 551 (9) (5.1%) 0.4% 36.6% NM NM 0.13x NM 0.13x NM
Mean 66.0% 1,719 840 189 2,370 3,314 307 1.7% 2.0% 26.3% 6.2% 17.4x 0.42x 6.4x 0.40x 5.1x
Median 67.7% 384 60 89 315 2,677 71 4.4% 4.7% 24.5% 3.7% 17.3x 0.13x 7.6x 0.13x 5.2x
Department Chains
Bon-Ton Stores Inc. BONT $3.82 34.7% $77 $940 $14 $1,002 $2,943 $158 (3.0%) (2.4%) 37.2% 5.4% NM 0.34x 6.4x 0.34x 6.1x
Dillard's Inc. DDS 67.50 93.2% 3,314 902 251 3,966 6,484 708 3.4% (1.5%) 36.8% 10.9% 7.3x 0.61x 5.6x 0.60x 5.3x
J. C. Penney Company, Inc. JCP 26.66 61.7% 5,823 3,102 839 8,086 16,469 680 (7.3%) (3.4%) 35.3% 4.1% NM 0.49x 11.9x 0.52x 6.1x
Kohl's Corp. KSS 47.76 83.2% 11,618 4,247 1,029 14,836 18,885 2,876 2.0% 4.8% 37.7% 15.2% 11.1x 0.79x 5.2x 0.75x 5.0x
Macy's, Inc. M 36.28 86.0% 15,042 6,957 1,891 20,108 26,659 3,520 5.3% 3.1% 40.3% 13.2% 11.9x 0.75x 5.7x 0.72x 5.5x
Nordstrom Inc. JWN 49.57 85.8% 10,307 3,143 1,647 11,803 11,183 1,641 12.6% 9.9% 37.3% 14.7% 15.5x 1.06x 7.2x 0.99x 6.7x
Saks Incorporated SKS 10.18 83.9% 1,561 382 189 1,753 3,041 279 6.9% 2.6% 40.9% 9.2% 21.5x 0.58x 6.3x 0.54x 5.8x
Sears Holdings Corporation SHLD 55.97 65.2% 5,957 3,229 777 8,409 41,297 394 (2.0%) (3.4%) 26.0% 1.0% NM 0.20x 21.3x 0.22x 13.8x
Stage Stores Inc. SSI 16.06 83.1% 493 50 22 522 1,531 114 3.7% 0.8% 27.4% 7.4% 16.7x 0.34x 4.6x 0.33x 4.2x
Mean 75.2% 6,021 2,550 740 7,832 14,277 1,152 2.4% 1.2% 35.4% 9.0% 14.0x 0.57x 8.2x 0.56x 6.5x
Median 83.2% 5,823 3,102 777 8,086 11,183 680 3.4% 0.8% 37.2% 9.2% 13.7x 0.58x 6.3x 0.54x 5.8x
Discount Stores & Mass Merchants
Nordion Inc. NDN $0.00 0.0% $551 $45 $71 $525 $262 $79 6.4% 87.1% 53.4% 30.2% 32.8x 2.00x 6.6x 2.01x 7.4x
Big Lots Inc. BIG 35.16 74.5% 2,328 66 69 2,325 5,202 431 5.0% 3.8% 39.8% 8.3% 11.8x 0.45x 5.4x 0.42x 5.0x
Costco Wholesale Corporation COST 83.73 90.9% 36,337 2,280 5,785 32,832 93,396 3,387 13.9% 8.6% 12.4% 3.6% 24.4x 0.35x 9.7x 0.32x 8.5x
Dollar General Corporation DG 46.35 95.1% 15,686 2,629 128 18,187 14,807 1,780 13.6% 12.3% 31.7% 12.0% 20.9x 1.23x 10.2x 1.13x 9.3x
Dollar Tree, Inc. DLTR 96.89 93.1% 11,237 266 382 11,120 6,808 976 12.1% 12.4% 35.8% 14.3% 23.0x 1.63x 11.4x 1.46x 9.8x
Duckwall-ALCO Stores Inc. DUCK 8.50 68.2% 32 65 2 95 483 13 4.4% (0.5%) 30.3% 2.8% 17.7x 0.20x 7.1x NA NA
Family Dollar Stores Inc. FDO 65.08 93.0% 7,597 532 158 7,972 8,895 866 8.3% 7.2% 35.1% 9.7% 19.2x 0.90x 9.2x 0.82x 8.3x
Fred's, Inc. FRED 14.40 94.3% 530 7 27 510 1,879 85 2.0% 1.5% 28.7% 4.5% 16.6x 0.27x 6.0x 0.26x 5.3x
Gordmans Stores, Inc. GMAN 18.48 79.5% 353 1 42 312 575 47 8.6% 44.1% 43.4% 8.1% 13.9x 0.54x 6.7x 0.48x 5.7x
PriceSmart Inc. PSMT 71.47 84.8% 2,109 86 91 2,104 1,900 120 23.1% 16.2% 15.8% 6.3% 34.0x 1.11x 17.5x 0.95x 14.4x
Target Corp. TGT 55.83 94.7% 36,909 17,450 675 53,684 70,797 7,491 4.5% 2.9% 29.8% 10.6% 13.0x 0.76x 7.2x 0.73x 7.1x
Tuesday Morning Corp. TUES 3.98 80.1% 166 0 39 127 811 24 (1.9%) 0.1% 38.0% 3.0% 37.4x 0.16x 5.3x 0.16x NA
Wal-Mart Stores Inc. WMT 63.04 99.9% 214,379 54,626 8,117 260,888 455,779 35,300 6.9% 4.1% 24.9% 7.7% 13.5x 0.57x 7.4x 0.55x 7.1x
Mean 80.6% 25,247 6,004 1,199 30,052 50,892 3,892 8.2% 15.4% 32.2% 9.3% 21.4x 0.78x 8.4x 0.77x 8.0x
Median 90.9% 2,328 86 91 2,325 5,202 431 6.9% 7.2% 31.7% 8.1% 19.2x 0.57x 7.2x 0.64x 7.4x
Furniture & Furnishings Retailers
Aaron's, Inc. AAN $25.86 81.4% $1,967 $154 $234 $1,886 $2,076 $283 8.6% 8.1% 51.8% 13.6% 14.5x 0.91x 6.7x 0.84x 5.9x
Bed Bath & Beyond Inc. BBBY 69.79 95.9% 16,128 0 1,760 14,368 9,500 1,752 8.5% 9.6% 41.4% 18.4% 17.2x 1.51x 8.2x 1.40x 7.6x
Cost Plus Inc. CPWM 21.94 99.9% 494 139 3 630 979 54 5.5% 1.6% 32.2% 5.5% 24.7x 0.64x 11.7x 0.60x 9.3x
Ethan Allen Interiors Inc. ETH 21.91 77.2% 632 154 84 702 722 66 8.7% (2.2%) 53.3% 9.2% 12.8x 0.97x 10.6x 0.91x 8.3x
Haverty Furniture Companies Inc. HVT 12.33 94.8% 271 13 57 227 631 28 1.9% (1.1%) 51.9% 4.4% 14.8x 0.36x 8.1x 0.34x 5.9x
Kirkland's Inc. KIRK 10.53 60.4% 193 0 73 119 434 41 4.2% 3.6% 39.1% 9.4% 11.6x 0.28x 2.9x 0.25x NA
La-Z-Boy Inc. LZB 13.90 84.6% 719 30 148 601 1,243 75 7.3% (1.7%) 30.9% 6.0% 9.5x 0.48x 8.1x 0.47x 6.2x
Lifetime Brands, Inc. LCUT 11.55 87.4% 144 97 5 235 462 36 3.5% (1.3%) 36.7% 7.9% 8.9x 0.51x 6.5x NA NA
EV / 2012ERevenue Growth LTM Margins EV / LTMLast Twelve Months (LTM)
Consumer and Retail
Industry Update
May 2012
11 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 5/21/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Furniture & Furnishings Retailers (Cont.)
Pier 1 Imports, Inc. PIR $16.04 84.0% $1,733 $10 $288 $1,455 $1,534 $188 9.8% 5.1% 42.5% 12.2% 10.8x 0.95x 7.8x 0.88x 6.5x
Rent-A-Center Inc. RCII 33.18 84.0% 1,971 652 107 2,516 2,975 391 8.0% 1.4% 70.2% 13.1% 11.7x 0.85x 6.4x 0.79x 5.9x
Select Comfort Corporation SCSS 25.63 72.0% 1,453 0 171 1,283 813 119 26.8% 11.9% 63.0% 14.6% 22.1x 1.58x 10.8x 1.31x 8.1x
The Sherwin-Williams Company SHW 118.82 94.9% 12,271 1,322 25 13,568 9,046 1,002 12.1% 5.3% 42.6% 11.1% 26.6x 1.50x 13.5x 1.37x 11.4x
Tuesday Morning Corp. TUES 3.98 80.1% 166 0 39 127 811 24 (1.9%) 0.1% 38.0% 3.0% 37.4x 0.16x 5.3x 0.16x NA
Williams-Sonoma Inc. WSM 34.73 85.2% 3,459 7 376 3,089 3,768 510 5.9% 5.7% 39.1% 13.5% 15.5x 0.82x 6.1x 0.77x 5.5x
Mean 84.4% 2,971 184 241 2,915 2,499 326 7.8% 3.3% 45.2% 10.1% 17.0x 0.82x 8.0x 0.78x 7.3x
Median 84.3% 1,086 21 96 992 1,111 97 7.6% 2.6% 41.9% 10.3% 14.6x 0.83x 7.9x 0.79x 6.5x
Internet Retail
1-800-Flowers.com Inc. FLWS $2.90 84.8% $188 $33 $25 $196 $737 $37 12.5% 8.2% 40.3% 5.1% 16.9x 0.27x 5.2x 0.26x 4.3x
Amazon.com Inc. AMZN 218.11 88.4% 98,264 0 5,715 92,549 51,405 1,815 39.2% 37.2% 22.8% 3.5% NM 1.80x 51.0x 1.37x 26.6x
Blue Nile Inc. NILE 30.48 60.9% 421 1 61 361 351 15 3.5% 6.9% 20.1% 4.3% 48.7x 1.03x 23.7x 0.90x 15.2x
eBay Inc. EBAY 39.51 94.2% 51,016 2,085 5,871 47,230 12,383 3,489 30.3% 13.9% 70.0% 28.2% 15.5x 3.81x 13.5x 3.26x 10.0x
IAC/InterActiveCorp. IACI 44.83 84.9% 3,663 96 776 2,983 2,240 314 30.3% 16.8% 63.7% 14.0% 22.2x 1.33x 9.5x 1.09x NA
Netflix, Inc. NFLX 71.74 23.5% 3,983 400 805 3,578 3,356 326 40.6% 32.8% 33.7% 9.7% 24.3x 1.07x 11.0x 0.95x 20.1x
Orbitz Worldwide, Inc. OWW 3.33 74.2% 347 440 188 599 772 114 2.2% (2.8%) 82.0% 14.7% NM 0.78x 5.3x 0.72x 4.1x
Overstock.com Inc. OSTK 6.45 40.5% 151 17 72 96 1,051 1 (3.7%) 9.0% 16.8% 0.1% NM 0.09x 68.0x 0.09x 5.0x
PetMed Express Inc. PETS 11.54 82.3% 235 0 57 178 238 27 2.9% 2.8% 33.6% 11.5% 14.4x 0.75x 6.5x 0.72x 6.7x
priceline.com Incorporated PCLN 657.68 84.9% 32,748 1,442 3,619 30,571 4,584 1,547 38.5% 33.1% 72.4% 33.7% 29.7x 6.67x 19.8x 5.37x 14.6x
Shutterfly, Inc. SFLY 25.31 39.3% 905 0 144 761 507 45 58.9% 33.1% 52.7% 8.8% NM 1.50x 17.0x 1.28x 7.5x
Stamps.com Inc. STMP 25.84 76.6% 425 0 49 376 107 20 22.5% 8.5% 74.5% 18.7% 10.2x 3.51x 18.8x 3.14x 13.0x
U.S. Auto Parts Network, Inc. PRTS 3.86 48.3% 118 18 11 126 328 11 11.8% 28.9% 31.5% 3.4% NM 0.38x 11.4x 0.36x 7.1x
Mean 67.9% 14,805 349 1,338 13,816 6,004 597 22.3% 17.6% 47.2% 12.0% 22.8x 1.77x 20.1x 1.50x 11.2x
Median 76.6% 425 18 144 599 772 45 22.5% 13.9% 40.3% 9.7% 19.5x 1.07x 13.5x 0.95x 8.7x
Specialty & Other Retail
Barnes & Noble, Inc. BKS 17.20 66.2% 1,000 252 27 1,224 7,124 175 2.6% 12.5% 26.5% 2.4% NM 0.17x 7.0x 0.16x 5.2x
Best Buy Co. Inc. BBY 18.17 55.3% 6,218 2,208 1,199 7,227 50,705 3,295 1.9% 4.0% 24.8% 6.5% NM 0.14x 2.2x 0.14x 2.4x
Big 5 Sporting Goods Corp. BGFV 6.72 58.0% 144 65 6 204 899 36 0.0% 1.4% 31.9% 4.0% 16.4x 0.23x 5.7x 0.22x 4.8x
Books-A-Million Inc. BAMM 3.07 68.5% 49 5 10 44 469 13 (3.6%) (3.1%) 28.3% 2.7% NM 0.09x 3.5x NA NA
Build-A-Bear Workshop Inc. BBW 4.56 51.8% 75 0 36 39 395 23 (0.3%) (3.7%) 41.0% 5.8% NM 0.10x 1.7x 0.10x 1.2x
Conns Inc. CONN 17.24 86.9% 557 322 6 872 792 29 (2.0%) (6.2%) 38.9% 3.7% NM 1.10x 29.8x 1.05x 8.7x
CVS Caremark Corporation CVS 44.88 97.1% 57,514 9,211 2,216 64,509 112,203 8,046 14.8% 7.8% 18.7% 7.2% 16.8x 0.57x 8.0x 0.52x 7.2x
Dick's Sporting Goods Inc. DKS 46.53 90.1% 5,682 153 521 5,314 5,380 578 8.9% 8.8% 30.8% 10.7% 20.7x 0.99x 9.2x 0.90x 8.0x
Fossil, Inc. FOSL 71.09 51.1% 4,403 21 261 4,163 2,620 519 20.5% 19.1% 56.0% 19.8% 15.2x 1.59x 8.0x 1.37x 6.9x
Golfsmith International Holdings Inc. GOLF 6.04 95.1% 96 54 9 142 396 13 8.3% 2.5% 34.8% 3.3% NM 0.36x 11.0x 0.33x 5.9x
hhgregg, Inc. HGG 9.85 59.2% 367 28 5 390 2,387 106 20.1% 20.7% 29.0% 4.4% 9.1x 0.16x 3.7x 0.14x 3.5x
Hibbett Sports, Inc. HIBB 56.20 90.7% 1,484 0 96 1,388 762 115 11.4% 9.8% 36.1% 15.1% 23.8x 1.82x 12.1x 1.66x 10.8x
Jasmine International JAS 3.04 86.4% 21,824 4,386 1,833 24,377 9,603 3,946 (4.6%) 20.1% 52.7% 41.1% 16.1x 2.54x 6.2x NA NA
Lowe's Companies Inc. LOW 25.60 79.3% 30,692 9,611 3,233 37,070 51,176 5,466 5.3% 2.1% 34.4% 10.7% 16.9x 0.72x 6.8x 0.72x 6.8x
Lumber Liquidators Holdings, Inc. LL 28.27 93.9% 778 0 61 717 710 56 12.9% 13.0% 35.6% 7.9% 27.7x 1.01x 12.8x 0.94x 10.6x
Marinemax Inc. HZO 9.57 85.1% 225 120 29 316 509 6 13.6% (8.6%) 25.4% 1.2% NM 0.62x 53.1x 0.58x 19.7x
Movado Group, Inc. MOV 25.27 84.3% 634 0 182 452 468 42 22.5% 3.2% 54.8% 8.9% 19.9x 0.97x 10.8x 0.89x NA
Office Depot, Inc. ODP 2.24 50.7% 636 678 489 825 11,389 329 (1.3%) (6.1%) 30.1% 2.9% 5.5x 0.07x 2.5x 0.07x 2.5x
PetSmart, Inc. PETM 55.73 93.9% 6,040 613 376 6,277 6,113 740 7.4% 6.5% 29.5% 12.1% 21.9x 1.03x 8.5x 0.94x 7.6x
Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2012E
Consumer and Retail
Industry Update
May 2012
12 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 5/21/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Specialty & Other Retail (Cont.)
RadioShack Corp. RSH $4.74 29.2% $471 $675 $566 $580 $4,369 $213 1.8% 0.7% 39.5% 4.9% 17.8x 0.13x 2.7x 0.13x 3.3x
Regis Corp. RGS 17.93 94.8% 1,019 292 98 1,214 2,298 207 (1.1%) (2.1%) 37.0% 9.0% NM 0.53x 5.9x 0.53x 5.2x
Rite Aid Corp. RAD 1.26 59.4% 1,133 6,349 162 7,319 26,121 703 3.6% (0.2%) 26.0% 2.7% NM 0.28x 10.4x 0.28x 7.2x
Staples, Inc. SPLS 13.35 78.1% 9,200 2,034 1,205 10,030 24,954 2,103 1.2% 1.3% 30.3% 8.4% 9.6x 0.40x 4.8x 0.39x 4.7x
Steiner Leisure Ltd. STNR 44.64 83.5% 682 161 60 783 732 78 14.0% 12.0% 25.3% 10.7% 13.1x 1.07x 10.0x 0.95x 8.2x
The Home Depot, Inc. HD 47.61 90.0% 72,600 10,825 3,191 80,234 71,380 8,621 5.0% 0.9% 34.5% 12.1% 17.9x 1.12x 9.3x 1.07x 8.6x
Tiffany & Co. TIF 61.14 72.4% 7,727 712 442 7,997 3,643 897 18.1% 8.5% 59.0% 24.6% 18.0x 2.20x 8.9x 2.01x 8.1x
Tractor Supply Company TSCO 93.88 92.8% 6,764 1 127 6,639 4,417 473 17.3% 12.7% 33.2% 10.7% 28.2x 1.50x 14.0x 1.38x 12.4x
Vitamin Shoppe, Inc. VSI 49.85 90.2% 1,452 1 14 1,438 888 109 14.3% 12.7% 43.4% 12.3% 28.8x 1.62x 13.2x 1.48x 11.6x
Walgreen Co. WAG 31.35 69.1% 27,047 2,393 1,084 28,356 73,146 5,017 4.6% 6.2% 28.3% 6.9% 10.7x 0.39x 5.7x 0.39x 5.8x
Zale Corporation ZLC 2.25 32.6% 72 425 27 471 1,804 35 8.8% (3.0%) 51.2% 1.9% NM 0.26x 13.4x 0.25x 5.8x
Mean 74.5% 8,886 1,720 586 10,020 15,928 1,400 7.5% 5.1% 35.6% 9.2% 17.7x 0.79x 10.0x 0.70x 7.1x
Median 81.4% 1,076 272 144 1,306 3,131 210 6.3% 3.6% 33.8% 7.5% 17.3x 0.60x 8.2x 0.55x 6.9x
EV / 2012ELast Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM
May 2012
M&A
Detail
Recent North
American
Consumer
M&A
Enterprise Enterprise Value Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
5/20/2012 AMC Entertainment Holdings AlpInvest Partners N.V. Dalian Wanda Group Corp. $4,539.7 1.80x 17.1x 88.3x P
5/17/2012 BIDZ.com, Inc. Lacuna, LLC Glendon Group, Inc. $12.7 0.10x NaN NaN P
5/16/2012 Peninsula Gaming LLC Peninsula Gaming Partners, LLC Boyd Gaming Corp. $2,103.4 5.40x 18.6x 26.2x
5/15/2012 Majestic Colorado Gaming, LLC The Majestic Star Casino, LLC Saratoga Harness Racing $28.0 - - -
5/14/2012 Premiere Global Sports Travel Management Partners, Inc. Premiere Global Sports - - - - P
5/14/2012 Golfsmith International First Atlantic Capital, Ltd. Golf Town USA Holdings $144.1 0.40x 10.3x 60.4x P
5/11/2012 Montana Decoy, Inc. - Flint Holdings - - - -
5/11/2012 Skyline Cleaners Inc. - WDM Ventures Inc. - - - - P
5/11/2012 Air Lee Cleaners Inc - WDM Ventures Inc. - - - - P
5/10/2012 Natural Product Laboratories - Union Equity Investments - - - - P
5/9/2012 Cost Plus Inc. Thales Fund Management, LLC, Bed Bath & Beyond Inc. $631.5 0.60x 11.7x 18.1x P
5/8/2012 Auto Body World Inc. - Service King Paint & Body, LLC - - - -
5/8/2012 homeLOFT, Leather Groups.com homeLOFT Incorporated Luxeyard, Inc. - - - -
5/8/2012 TAVIK - Incipio Technologies, Inc. - - - -
5/8/2012 Classic Brands LLC - Topperscot, LLC - - - -
5/8/2012 Park Plaza Cleaners - LaMode Cleaners, LLC - - - -
5/7/2012 Flipswap, Inc. RRE Ventures LLC eRecyclingCorps, LLC - - - - P
5/3/2012 SC Christmas, Inc., Sports Division SC Christmas, Inc. Evergreen Enterprises, Inc. - - - -
5/3/2012 Mega Movies - Starplex Cinemas - - - -
5/3/2012 Anvil Holdings Inc. Court Square Capital Partners Gildan Activewear Inc. $88.0 0.40x 5.2x - P
5/3/2012 Worldwide Rights to Fred Segal Brand Fred Segal Sandow Media Corporation - - - -
5/2/2012 PrimaLoft® Products Business Albany International Corp. Prudential Capital Group, L.P. $38.0 - - - P
5/2/2012 Atmospheric Water Solutions, Inc. - Marine Exploration, Inc. - - - -
5/2/2012 FoodHandler, Inc. BarrierSafe Solutions International, Inc. Bunzl plc - - - -
5/2/2012 Charming Shoppes Inc. Omega Advisors, Inc. Ascena Retail Group Inc. $897.3 0.50x 10.8x 36.3x P
5/2/2012 Eat Right International, Inc. - Vitamin Spice, LLC - - - -
5/1/2012 Collective Brands, Inc. - Blum Capital Partners $1,784.9 0.50x 8.8x 25.0x P
5/1/2012 Dragon Alliance LLC Winona Capital Management, LLC Marchon Eyewear, Inc. - - - - P
4/30/2012 Heritage Manufacturing, Inc. - Taurus International MFG, Inc. - - - -
4/30/2012 Hairy Entertainment, LLC - Oomba, LLC - - - -
4/27/2012 BidCactus, LLC - Digifonica International Inc. $11.8 - - -
4/27/2012 Big Splash, Inc. - Kelly Inns, Ltd. - - - -
4/26/2012 Inergy, L.P., Propane Business Inergy, L.P. Suburban Propane Partners LP $1,800.0 - - -
4/26/2012 Retama Partners, Ltd. - Pinnacle Entertainment Inc. $27.7 - - -
4/25/2012 Blu Cigs - Lorillard, Inc. $135.0 4.50x - -
4/25/2012 Lennox Hearths Products, LLC Lennox International, Inc. Comvest Investment Partners - - - - P
4/25/2012 The Globe Corner Bookstores - Brookline Booksmith Corporation - - - -
4/24/2012 Reese Kitchens Inc. - Ferguson Enterprises, Inc. - - - -
4/23/2012 Kelly-Moore Paint Company, Inc., Kelly-Moore Paint Company, Inc. Miller Paint Co., Inc. - - - -
4/21/2012 Marcal Paper Mills LLC NexBank, SSB Atlas Holdings LLC - - - - P
4/20/2012 The Black Book Depot - InterpWorks Corporation - - - -
4/19/2012 SanDiego.com, Inc. - Wind n Sea Media Partners, LLC - - - -
4/18/2012 Play140 SOSventures Oomba, LLC - - - - P
4/17/2012 Primos, Inc. Svoboda Capital Partners LLC Bushnell Performance Optics - - - - P
4/17/2012 JAKKS Pacific World Wrestling Entertainment Oaktree Capital Management - - - - P
4/15/2012 Teaopia Limited - Teavana Canada, Inc. $26.9 1.59x - -
4/13/2012 Dreams Inc. Emerson Partners Fanatics, LLC $167.9 1.18x 30.3x 59.1x P
4/13/2012 Greners.com, Inc. - Phototron Holdings, Inc. - - - -
4/11/2012 Sun & Skin Care Research, Inc. - Source Capital - - - - P
4/9/2012 Mattress Giant Corporation AEA Investors LP Mattress Firm Holding Corp. $47.0 - - - P
4/6/2012 SLY LLC - Valken, Inc. - - - -
4/5/2012 The Connaught Group - The Tom James Company $22.0 - - -
4/4/2012 Great Wolf Resorts BAMCO Inc. KSL Capital Partners $723.7 2.44x 9.4x 31.4x P
4/4/2012 SkyMall, Inc. Spire Capital Partners Bookspan, Inc. - - - - P
4/4/2012 Kynx, LLC - Curls LLC - - - -
4/3/2012 American Bedding Company Inc. - Sleep Inc. - - - -
4/1/2012 The Dial Corporation, Certain Brands The Dial Corporation Golden Sun, Inc. - - - -
3/31/2012 The Dial Corporation, Coast The Dial Corporation High Ridge Brands Co. - - - -
3/30/2012 DVD.com, Inc. - Netflix, Inc. - - - -
3/30/2012 Callaway Golf Co., Top-Flite Brand Callaway Golf Co. American Sports Licensing, Inc. $20.0 - - -
3/30/2012 The Baby Jogger Company Dynamic Brands, Inc. The Riverside Company - - - - P
3/30/2012 McKenzie Sports Products Gridiron Capital Levine Leichtman Capital Partners - - - - P
3/29/2012 Beauté de Maman - NorthStar Consumer Products, LLC - - - -
3/27/2012 Motorcycle Superstore Inc. - Motorsport Aftermarket Group, Inc. - - - -
3/23/2012 L.A.T Sportswear, Inc. - Ridge Capital Partners, L.L.C. - - - - P
3/21/2012 Solo Cup Co. Vestar Capital Partners Dart Container Corporation $958.1 0.59x 9.0x 21.7x P
3/21/2012 OMGPOP, Inc. Bessemer Venture Partners Zynga, Inc. $180.0 - - - P
3/19/2012 Doc's Drugs, Ltd. - - - - - -
3/15/2012 Rio de Keratin, LLC - Lasio, Inc. - - - -
3/14/2012 Van Craeynest, Inc. - - - - - -
3/12/2012 WorldWide Wireless, Inc. - Everybody's Phone Company - - - -
3/12/2012 Midas Inc. GAMCO Investors TBC Corporation $268.5 1.46x 10.3x 14.7x P
3/12/2012 Great Wolf Resorts BAMCO / HG Vora Capital Apollo Global Management $648.5 2.19x 8.4x 28.1x P
3/12/2012 WorldWide Wireless - Everybody's Phone Co. - - - -
3/12/2012 Golf Card International Good Sam Enterprises Simmons Venture Group - - - -
3/10/2012 YTB International - LTS Nutraceuticals - - - -
13 of 16
May 2012
M&A
Detail
Recent North
American
Consumer
M&A
(continued)
Enterprise Enterprise Value Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
3/8/2012 New Tropicana Club - The ONE Group - - - -
3/8/2012 John Varvatos VF Sportswear, Inc. Lion Capital LLP - - - - P
3/7/2012 High Five Products - BarrierSafe Solutions - - - -
3/7/2012 Real Real 2020 Ventures, LLC Expansion VC, LLC - - - - P
3/6/2012 Zaldiva Summit Group of Companies Cygnus Internet, Inc. - - - - P
3/5/2012 T2 Wireless - Z Wireless - - - -
3/5/2012 Interactive Optics - EndoChoice, Inc. - - - -
3/4/2012 Riverboat Corporation of MS Isle of Capri Casinos, Inc. Golden Nugget, Inc. $45.0 - - -
3/2/2012 OSMOTICS - BHMS Investments - - - -
3/1/2012 A-Line Acoustics - Atlas Sound LP - - - -
3/1/2012 Lebanon Raceway Miami Valley Trotting Inc. Miami Valley Gaming & Racing $70.0 - - -
2/29/2012 Passageways Travel - Altour International - - - -
2/28/2012 Central Parking Corporation Kohlberg & Company Standard Parking Corp. $345.1 0.64x 10.0x - P
2/28/2012 Quaker City Motor Parts - Genuine Parts Company - - - -
2/27/2012 General Workings, Inc. Battery Ventures Rent2Buy, Inc. - - - - P
2/27/2012 Glass Specialty Company - Guardian Auto Glass - - - -
2/24/2012 The Hip Chick, LLC - Skye Associates - - - -
2/23/2012 Send the Trend, Inc. Battery Ventures QVC, Inc. - - - - P
2/23/2012 ICA Home Décor - JLA Home, Inc. - - - -
2/21/2012 Herborium Group - China Health Resource - - - -
2/21/2012 Prestige Brands Holdings Wells Fargo Funds Genomma Lab Internacional $1,262.4 3.13x 10.6x 11.6x P
2/20/2012 Mikes Feed Farm - Phillips Feed Service, Inc. - - - -
2/17/2012 Nixon, Inc. Billabong Trilantic Capital Management $553.4 - - - P
2/15/2012 Skyway Luggage Company - Ricardo Beverly Hills - - - -
2/13/2012 US Marine Lights - Warrior Girl Corp. - - - -
2/10/2012 Sycamore Ventures, Inc. - Aero Financial - - - - P
2/8/2012 Red Rock Products, Inc. - Shockoe Commerce Group - - - -
2/3/2012 Swank Inc. New Swank Inc. Randa Corp. $72.4 0.53x 6.8x 7.0x
2/1/2012 United Retail Group, Inc. Redcats USA Versa Capital Management - - - - P
1/31/2012 Quartermaster, Inc. Parallel Investment Galls - - - - P
1/30/2012 Drug Trading Company The Katz Group Mckesson Canada $915.4 - - -
1/30/2012 Beyond a Bag Connect Concepts, Ganz - - - -
1/29/2012 Pep Boys - Manny, Moe & Jack North Run Capital The Gores Group $1,043.5 0.51x 6.4x 12.3x P
1/27/2012 CastAway Fishing Products - Fish-N-Hunt - - - -
1/26/2012 Vacances Tours Mont-royal - Transat AT - - - -
1/26/2012 East Coast Temporary Tattoos - Tattoo Manufacturing - - - -
1/20/2012 Cellar Thief, LLC - Good Company Wines - - - -
1/17/2012 Naked Boxer Brief Clothing Inc. - Headlines.com - - - -
1/17/2012 Aviva Sports, Inc. ShoreMaster, Inc. Rave Sports, Inc. $0.3 - - -
1/16/2012 Burlington Basket Company - LaMont Limited - - - -
1/12/2012 Opa Cove, LLC - Swimways Corporation - - - -
1/12/2012 Gunther's Athletic Service, Inc. - Riddell Sports Group, Inc. - - - -
1/12/2012 Mindnautilus.Com Corporation - School Health Corporation - - - -
1/10/2012 Cabinotch - Columbia Forest Products - - - -
1/10/2012 Cosmetic Labs of America Alberto-Culver Company Visual Pak Company - - - -
1/9/2012 Skagen Designs, Ltd. - Fossil, Inc. $244.8 - - -
1/9/2012 HopBet Inc., Fire Bet Hopbet Inc. Shuffle Master Inc. - - - -
1/6/2012 Colorescience VMG Partners SkinMedica, Inc. - - - - P
1/6/2012 Robar, Inc. - Cutie Pie Baby, Inc. - - - -
1/5/2012 Grabber Inc. - Kobayashi Pharmaceutical Co. Ltd. - - - -
1/4/2012 VyMaC Corporation - Marcus Investments LLC - - - - P
1/4/2012 Barnes & Wagner, LLC - Edenvale Shoppes, LLC - - - -
1/4/2012 Carolina Safety Sport International LLC - Safety Supply Corp. - - - -
1/4/2012 Onkyo USA Corporation Onkyo Corp. Gibson Guitar Corp. $17.5 - - -
1/3/2012 Deezfit, LLC - Activewear Brands LLC - - - -
1/3/2012 Palm Beach Specialty Coffee, LLC - Sipp Industries, Inc. - - - -
12/9/2011 Driven Brands, Inc. Carousel Capital Harvest Partners, LLC - - - - P
12/9/2011 VE Holdings, Inc. - Sunwing Travel Group Inc. - - - -
12/9/2011 ID8-Mobile, LLC - AAC Technologies Holdings Inc. - - - -
12/8/2011 ALC-Partner, Inc. CHS Capital Versa Capital Management, Inc. - - - - P
12/8/2011 Specialty Products of America, LLC - Swisher Hygiene Inc. $0.9 - - -
12/2/2011 Golden Sun, Inc. Parallel Investment Partners Brynwood Partners - - - - P
12/1/2011 Cruise Shoppes America Ltd. - Vacation.com, Inc. - - - -
12/1/2011 Paris Glove of Canada Ltd. - New Wave Group AB $16.2 0.59x - 5.9x
11/30/2011 Discover Tour Guides - Webeez, Inc. - - - -
11/30/2011 Swimwear Etc. Ltd. - Swimco Inc. - - - -
11/21/2011 Silvermark - Trudeau Corporation - - - -
11/21/2011 Orbit Baby, Inc. - The ERGO Baby Carrier $17.5 - - - P
11/16/2011 Emotion Kayaks, Inc. - Lifetime Products, Inc. - - - -
11/15/2011 American Pest Control - Massey Services, Inc. - - - -
11/15/2011 Iron Stop, Inc. - Woodstream Corporation - - - - P
11/14/2011 Handi Quilter, Inc Hanover Partners High Road Capital Partners - - - - P
11/9/2011 Peggy Knight Solutions, Inc. - Follea, Inc. - - - -
11/9/2011 Olan Mills, Inc. - Lifetouch Inc. - - - -
11/9/2011 Pacific Biosciences Rosewood Capital L'Oreal USA, Inc. - - - - P
11/8/2011 Jean Genie Studio, Inc. - Omni Ventures - - - -
11/8/2011 Motion Specialties Inc. The Motion Group Centric Health Corporation - - - -
14 of 16
May 2012
Glenn Gurtcheff Managing Director
+1 (612) 359-2702
Ryan Budlong Vice President
+1 (612) 359-2722
Jeff Cleveland Vice President
+1 (612) 359-2703
Tim Alexander Managing Director
+1 (612) 359-2716
HW&Co.
Consumer
Team
Recent North
American
Consumer
M&A
(continued)
M&A
Detail
Enterprise Enterprise Value Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
11/8/2011 Kobo, Inc. Indigo Books & Music Rakuten $315.0 - - -
11/7/2011 ABRA, Inc. GE Equity Palladium Equity Partners - - - - P
11/7/2011 Allergy Control Products, Inc. Planet Biopharmaceuticals RH Allergy Acquisition - - - -
11/4/2011 W.E. Bassett Company - Pacific World Corporation - - - -
11/3/2011 CFM Consulting - Gold's Gym International - - - -
11/3/2011 Five Ten U.S. - Adidas AG $25.0 - - -
11/2/2011 Oneida Ltd. - Monomoy Capital Partners - - - - P
11/1/2011 Implus Footcare, LLC AEA Investors LP Trilantic Capital Management - - - - P
10/27/2011 American & Efird, Inc. Ruddick Operating Company KPS Capital Partners $180.0 - - - P
10/26/2011 CozyBoots, Inc. - Shoebuy.com, Inc. - - - -
10/24/2011 Security Forces Inc. - Universal Protection Service - - - -
10/24/2011 GLJ, LLC - Waveland Investments - - - - P
10/21/2011 Cardpool, Inc. Y Combinator Blackhawk Network, Inc. - - - - P
10/20/2011 B.O.B. Trailers, Inc. - Britax Childcare Holdings - - - -
10/17/2011 Southern Sales & Marketing - Ames True Temper, Inc. $23.0 0.58x - -
10/17/2011 West Coast Laundry - Swisher Hygiene Inc. - - - -
10/17/2011 Trivani International - ARIIX Holding, LLC - - - -
10/14/2011 Ideal Image Development H.I.G. Capital STEINER $175.0 - - - P
10/13/2011 Echo Specialty Pharmacy - Salveo Specialty Pharmacy - - - -
10/12/2011 Premier Nutrition - Joint Juice, Inc. - - - -
10/12/2011 Twisted Pixel Games - Microsoft Studios - - - -
10/12/2011 Westcoast Contempo Fashions Liz Claiborne Inc. KMJ Brand Holdings - - - -
10/11/2011 Dana Buchman Liz Claiborne Inc. Kohl's - - - -
10/11/2011 99¢ Only Stores PRIMECAP Ares Management $1,368.7 0.95x 9.4x 11.7x P
10/7/2011 Integrity Building Systems - Icon Legacy Custom Modular Homes - - - -
10/4/2011 WorldStrides, LLC Charlesbank Capital Partners The Carlyle Group - - - - P
10/3/2011 Dunning Sportswear - Tharanco Lifestyle - - - -
10/3/2011 Galls ARAMARK CI Capital Partners - - - - P
10/3/2011 AC Moore Arts & Crafts Glenhill Capital Management LLC SBAR'S $43.5 0.10x - - P
10/3/2011 Craftmade International - Litex Industries, Limited $64.5 0.51x 53.5x 203.4x
10/3/2011 Cyber Supply, Inc. - Wireless Investment Fund $0.2 - - - P
10/1/2011 Prime Table Games - Galaxy Gaming $22.6 - - -
9/30/2011 Full Tilt Poker - Groupe Bernard Tapie - - - -
9/29/2011 Trophy-Craft - Monarch Trophy & Awards - - - -
9/29/2011 Litter Free Lunch - New Wave Enviro Products - - - -
9/27/2011 118Boardshop.com - LeftLane Sports, Inc. - - - -
9/26/2011 Ray Cook Golf, Inc. - TGIB Marketing, Inc. - - - -
9/24/2011 Sligh Furniture Company - Lexington Furniture - - - -
9/22/2011 Waterleaf Studios Inc. Trevelyan Ltd. St Regis Crystal Inc. - - - -
9/21/2011 Specialties Robert Legault Specialties Robert Legault, Inc. Premier Tech H&G - - - -
9/20/2011 Sur La Table, Inc. Freeman Spogli & Co. Investcorp Bank B.S.C. - - - - P
9/20/2011 Pink Mascara.com - Skye Associates LLC - - - -
9/19/2011 Via Fenestra LLC - Z Blinds Company Inc. - - - -
9/19/2011 ImagiPlay Inc. - BeginAgain, Inc. - - - -
9/15/2011 B & B Body and Paint LP - Service King Collision Repair - - - -
9/13/2011 Vertility Energy Corp. - Wireless Age Communications Inc. - - - -
9/13/2011 JAKKS Pacific, Inc. - Oaktree Capital Management, L.P. $387.7 0.52x 4.7x 7.0x P
9/12/2011 Evriholder Products, LLC Centerfield Capital Partners ClearLight Partners LLC - - - - P
9/7/2011 Atlantic Pest Solutions Inc. - HomeTeam Pest Defense, Inc. - - - -
9/6/2011 Nature's Instincts, Inc. - United Treatment Centers, Inc. - - - -
9/6/2011 WineDirect 1-800-Flowers.com Inc. WineDirect, Inc. $13.5 0.74x - -
9/6/2011 Team Sports America Inc. - Evergreen Enterprises, Inc. - - - -
9/2/2011 Liz Claiborne Inc., Global Mexx Business Liz Claiborne Inc. The Gores Group LLC $85.0 0.12x - -
9/1/2011 Worldwide Wireless Inc. - Global Holdings, Inc. - - - - P
15 of 16
Brant Cash Vice President
+1 (612) 359-2709
May 2012
Sources:
Capital IQ.
Thomson Financial.
S&P.
Reuters.
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Consumer and Retail
Industry Update
16 of 16
