Executive Summary
This is an Australian activewear label with a long track record (site age ~9 years) and notable celebrity exposure (claims of being worn by Khloé Kardashian, Kendall Jenner, Sofia Richie) and past distribution through The Iconic. The Flippa listing positions this as a quick stock-price sale driven by personal reasons; the buyer would receive the site, social assets (Instagram ~22.3k), and a subscriber list (~20k) with inventory at cost. Publicly-disclosed headline financials are small in absolute terms: annual revenue ≈ AUD 29,693 and annual profit ≈ AUD 14,729 (reported margin ~50%). Seller lists a profit multiple 7.0× (implied EV ≈ AUD 103,103) and revenue multiple 3.5× (implied EV ≈ AUD 103,925.50).
Why this matters: celebrity access + existing stock + a subscriber base create a rare acceleration opportunity. But the business is currently very small, and the public financial disclosure is minimal. The acquisition case depends on whether subscriber and influencer assets are real/transferable and whether inventory and supplier channels are solid.
Key Insights
Brand equity > cashflow today. The primary value appears to be brand presence (celebrity placements, Instagram relationships) and ready-to-sell inventory rather than recurring profits.
Low current revenue; high reported margin. Reported margin (50%) and small absolute profit imply either very low operating costs or incomplete expense capture in public figures. Verify the P&L.
Large subscriber base for size of business. ~20k subscribers vs ~AUD 30k revenue suggests the list is under-monetized or not fully engaged; a clear upside if verified and healthy.
Immediate go-to-market opportunity. Because stock is included at cost and celebrity/influencer contacts are claimed, a buyer with marketing capacity could relaunch fast and scale via influencer drops, paid social, and marketplace relisting.
Transfer risk on “celebrity access”. Celebrity/influencer relationships are often personal or managerial; confirm whether these contacts transfer or require new introductions.
Deep dive:
Website performance & metrics
Website speed: Not measured from public info. Shopify speed should be audited (Lighthouse / GTmetrix). Image optimization and theme bloat are common issues to address.
Product variation & SKU count: Listing indicates a full all-season collection ready for sale; exact SKU count and SKU-level margins not provided. Request stocktake (SKU list + cost + retail price + SKU pictures).
AOV & CLV: Average order value not published. Activewear AOVs vary widely (AUD ~50–150). CLV unknown; derive after obtaining order history and cohort analysis.
Repeat customer rate: Not disclosed. With a 9-year site, expect some repeat buyers. Make sure to ask for Shopify cohort reports.
Conversion rate: Not disclosed; benchmark for niche fashion sites is typically 1–3%. Request GA/Shopify conversion data by channel.
Website design/presentation: Site appears brand-forward (visual focus). Evaluate product pages for fit guidance, size charts, material transparency and customer reviews. This is key for apparel conversion.
Brand positioning & customer sentiment: Celebrity placements suggest premium/aspirational positioning. Check Trustpilot and Instagram engagement; evaluate authenticity and any negative feedback.
Marketing & efficiency / CAC: No ad metrics provided. With a large subscriber base and celebrity hooks, acquisition can be unusually efficient if lists and contacts are active. Obtain ad account read-only access and recent campaign ROAS.
Product offering & repositioning: Core: organic-cotton staples and all-season activewear. Reposition options: premium sustainable basics, capsule collections with celebrity co-promotions, or targeted fitness niches (e.g., pilates, barre).
Finances
Public numbers: Annual revenue AUD 29,693; annual profit AUD 14,729; profit margin ≈50%; monthly avg revenue ≈ AUD 2,474; monthly profit ≈ AUD 1,227.
Implied valuations: at seller multiples
Profit multiple 7.0× → Implied enterprise value ≈ AUD 103,103 (14,729 × 7 = 103,103).
Revenue multiple 3.5× → Implied enterprise value ≈ AUD 103,925.50 (29,693 × 3.5 = 103,925.50).
Those two lines are internally consistent (both imply ~AUD 103k EV).
Red flags to verify: absence of full P&L online. Request profit & loss, merchant statements, and bank reconciliation to confirm expenses (ad spend, returns, shipping, COGS, influencer fees, platform fees). Self-reporting of selling at “stock value only” requires an up-to-date, signed stocktake.
Marketing (Paid & Organic)
Organic assets: Instagram (~22.3k), subscriber list (~20k). Powerful if list hygiene & engagement are good. Verify open rates, last campaign sends, and segmentation.
Paid channels: Not disclosed. Buyer should request ad account access to inspect historical spend and creative performance.
Influencer/celebrity access: Claimed A-grade access is a high-leverage asset but carries transfer & legal risk. Request examples of past paid/earned placements, contact names/agents, and any signed MOUs or contracts.
Opportunities: Run a relaunched capsule with celebrity-led drops, monetize the list with reactivation campaigns, and combine influencer seeding with paid prospecting for efficient scale.
Operational efficiency
Manufacturing & suppliers: Seller offers access to China-based suppliers used historically. Verify supplier contracts, MOQs, lead times, minimum reorders, quality records and whether intellectual property (patterns/designs) is transferable.
Inventory & logistics: Seller claims will provide stocktake and sell at cost. Confirm physical inventory location, condition, and whether any stock is returnable/obsolescent.
SOPs & team: Determine whether the sale includes SOP documentation, fulfillment partners, and any retained contractors; absence of these increases transition risk.
Customer data & relationships
Subscriber list: ~20k claimed. Obtain export (anonymized until NDA signed) to verify source, engagement (open/click rates), and consent for marketing (GDPR/Australia rules).
Customer service history: Check return rates, chargebacks, complaints on Trustpilot or social channels. Request sample support tickets and RMA logs.
Legal & compliance due diligence
IP & brand rights: Confirm domain ownership, trademark registrations (if any), and ownership of social accounts. Clarify whether celebrity imagery/endorsements were paid and if any usage rights are transferable.
Supplier & manufacturing contracts: Ensure designs owned by seller can be manufactured by buyer or that production rights are transferable. Watch for exclusive agreements limiting future production.
Consumer law & labeling: Apparel claims (organic cotton) must be supportable; verify supplier certifications and any product testing records. Check tax/VAT compliance in Australia and any outstanding liabilities.
Privacy & marketing compliance: Ensure subscriber opt-ins are compliant with Australian spam laws (Spam Act) and privacy rules; obtain privacy policy and evidence of consent capture.
Challenges Identified
Verification gap: Public listing provides minimal P&L detail. The 50% margin and stock-at-cost claim require immediate verification.
Asset transferability risk: Celebrity/influencer access, Instagram account, and subscriber quality may not transfer effectively or may have contractual limits.
Small operating base: revenue is currently low; significant upside requires immediate marketing investment and operational capacity.
Inventory concentration & obsolescence risk: Existing stock could be seasonal or off-trend. Confirm sell-through assumptions.
Founder exit/knowledge loss: Quick sale for personal reasons means the founder may offer limited handover. Lack of SOPs or supplier introductions will slow re-launch.
Reputation vs reality: Celebrity claims are valuable but can be superficial (single photo usage vs paid campaign). Confirm the depth of those relationships.
Recommendations
Pre-offer (must request before any LOI)
Signed stocktake (date-stamped, photographed) with SKU list, cost, retail price and storage location.
Shopify order export + merchant statements for last 24 months (orders, refunds, chargebacks).
Full P&L and expense ledger showing detailed monthly costs (COGS, shipping, ad spend, influencer fees, platform fees, contractor payments).
Email list export & metrics (open/CTR, last engagement date, unsubscribe rate).
Proof of celebrity placements (links, publication screenshots, contracts or DM evidence and contact details for agents/managers).
Supplier contact list and manufacturing agreements in China (confirm IP ownership and re-order terms).
Evidence of trademark/domain ownership and social account admin transferability.
Returns & warranty report (last 12 months).
Post-close (0–6 months); rapid value plan
Immediate relaunch campaign: a high-credibility paid + influencer drop. Use existing stock to fund a capsule launch and test conversion.
Email activation sequence: re-engage the ~20k list with segmentation (active/idle) and a VIP drop for high-intent segments.
SOP & supplier handover: secure formal contacts and at least 60–90 days of founder/agent transition support to maintain celebrity introductions and supplier continuity.
Inventory audit & pricing optimization: clear slow-moving SKUs via bundles/discounts; preserve margin by prioritizing full-price sell-through for high-aspirational SKUs.
Legal & IP clean-up: register trademarks (if not already) and ensure any celebrity usage rights are contractually intact.
Deal structuring suggestion
Because the seller requests a quick sale at stock cost but public profit/run-rate is low, structure the deal with:
Purchase price covering stock at cost (verified stocktake) + a modest cash sum for brand/assets, and
An earn-out or performance bonus triggered by 6–12 month revenue or subscriber-monetization milestones if celebrity access proves valid.
Require seller reps & warranties for stock condition, IP ownership and authenticity of celebrity claims, and an escrow holdback for any undisclosed liabilities.
Conclusion
Overall, this is a high-opportunity, low-current-revenue asset where the primary upside is the combination of celebrity exposure, a large subscriber list, and immediate inventory. For the right buyer with strong marketing capability (especially influencer + email + paid social expertise), this is a potentially fast relaunch opportunity, particularly because the seller is offering stock at cost. However, the transaction is highly dependent on verification: the subscriber list must be active and clean, celebrity access must be transferable (or at least introduce-able), the stock must be in sellable condition, and the public P&L must reflect all costs.
If the above checks pass, a buyer could reasonably expect to re-launch with a celebrity-led capsule and achieve outsized ROI relative to the small cash outlay required today. If the checks fail (inactive list, non-transferable celebrity connections, or faulty inventory), the asset’s value falls back to inventory liquidation and domain/social admin value.
