Eton

EBITDA: SEK 134 million in 2015 (EBIT)
Number of Employees: 180
Sales: SEK 670 million in 2015

Eton is a leading global premium men’s shirt brand, offering shirts and directly linked accessories. The company is present in more than 1,300 point of sales in 40+ countries. Eton operates a wholesale-based route to market strategy, complemented with five own retail stores and e-commerce.

Eton sells its shirts and accessories in six collections throughout the year, together with a standard assortment that always is in stock. The business shirt collection constitutes a clear majority of the shirts sold. During 2015, Eton sold over 1.2 million shirts and accessories, with Nordic region, North America and DACH region as largest markets, together representing approximately three fourths of the volumes.

Eton has a highly reputable customer base with some of the world’s most exclusive department stores and retailers in Europe and North America. In order to build brand equity and end create customer interaction opportunities, the company also operates five own brand stores located in Stockholm, Copenhagen Airport, New York and two in London. Moreover, Eton sells its products online through its own e-commerce platform in more than 40 countries.    

Eton was founded by Annie and David Pettersson in Gånghester, Sweden in 1928. Since its inception, the company has been focused on making superior quality shirts. Eton was early proven outside Sweden and the Nordic region, evident by its presence in the United Kingdom since the 1950s. The geographical expansion has accelerated during the current CEO, Hans Davidson (grandson to the founders), and Eton is today present in more than 40 countries.

To Eton

Market trends and drivers

The outlook for Eton is positive as the company is gaining market share in a large and fragmented market.

The men’s premium shirt market is characterized by structural growth and higher resilience than other apparel markets. The market is expected to grow at ~3-4% per year, driven by increasing wellbeing of the population and increasing number of premium purchases through polarization of market. Men’s premium shirts offers recurring purchasing patterns, as the product staple product characteristics as well as demonstrate high degree of brand loyalty. Furthermore, it is typically more protected against traditional apparel risks, as fashion, weather and geographical risks.

Investment potential

The rationale underlying the investment in Eton is its unique position as global and specialized player in a growing, fragmented and resilient market together with a strong momentum and opportunity to continue to grow in existing as well as new markets and distribution channels.

The value creation plan includes development of omni channel setup, to grow volumes across all distribution channels and markets. Growth opportunities for Eton includes entrance of new point of sales and new accounts in existing markets, entrance and growth in new geographies as well as an increased focus on sales through its own e-commerce channel. In addition, the company’s organization and systems will also be strengthened in order to be equipped for further growth.