So THAT’s why they’re so expensive: 40% profit margins.
On one hand, it’s hard to see a physical notebook company really taking off in a digital economy. On the other hand, this is one of the best physical media companies around. The article (and the moleskin filing) are 100% correct in identifying their market. They aren’t selling notebooks…they’re selling people an identity.
If anything, the digital age can probably help them through more effective advertising. Social media and digital marketing are specifically geared towards selling niche products like this.
The article estimates that the company likely has a global audience of about 300 million, and is selling products to 1.5% of them. It wouldn’t shock me to see that 300 million number fall drastically in the future, but also see them sell to a much larger percentage of it.
It’s slated to IPO at a P/E of between 22 and 29. Might be a good long-term play if they can get their digital marketing act together.