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Luxury goods house financial model, built free.

A three-statement Excel model for a luxury goods house, built from your own figures and checked to balance.

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  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Owns one or more luxury maisons — fashion and leather goods, watches and jewellery, wines and spirits, perfumes and cosmetics — sold mainly through directly operated boutiques, selective wholesale and travel retail, with pricing power, heavy brand investment and results reported at constant currency.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued three ways

    Discounted cash flow, trading multiples and sum of the parts, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Luxury goods house sample model.xlsx
The Summary sheet of the sample luxury goods house model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a luxury goods house.

  1. How it earns revenue3 formulas
    Product-range sales · All product ranges
    Gross salesVolume soldPrice to retailer per unit
    Trade spend (gross to net) · All product ranges
    Trade spendGross salesfrom product-range salesTrade spend (% of gross sales)
    Sales · All store formats
    Online salesOrdersAverage order value
  2. What drives its costs3 formulas
    Product cost of goods and gross profit · All product ranges
    Standard cost per unitMaterials and ingredientsPackagingConversion labourPlant overheadInbound freight
    Product cost of goods and gross profit · All product ranges
    Cost of goods soldVolume soldfrom product-range salesStandard cost per unit
    Product cost of goods and gross profit · All product ranges
    Net salesGross sales (product-range sales)from product-range salesTrade spend (trade spend (gross to net))from gross to net
  3. What it invests in3 formulas
    Store capex and depreciation · All store formats
    Capital expenditureOnline salesfrom salesCapex as % of sales
    Store capex and depreciation · All store formats
    Less depreciationDepreciation (run-off of a mix of vintages)Depreciation
    Store capex and depreciation · All store formats
    Closing net book valueOpening net book valueAdd capital expenditureLess depreciation
  4. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

28 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Exchange rate (US dollar)Exchange rate by financial year
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • LeasesLease register
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Purchase price allocationAcquired intangibles with deferred tax
  • SynergiesRun-rate synergies with phasing
  • Case selectionStackable stress toggles
  • Discount rate (WACC)CAPM at target gearing
  • Sum of the partsRegister of parts on mixed bases
  • InventoryStock per store plus DC stockStock held in stores, distribution centres and in transit, and the cash it ties up.
  • Enterprise value to equity bridgeNet debt at the valuation date
  • Product-range salesDistribution × rate of saleGross sales of a brand, category or SKU family to retailers, wholesale accounts and export markets.
  • Trade spend (gross to net)Trade spend % of gross salesPayments and discounts to retail customers — promotional allowances, rebates, listing fees and co-operative marketing — deducted from gross sales to reach net revenue.
  • Product cost of goods and gross profitUnit cost buildCost of making or buying each product range — materials, packaging, conversion and inbound freight.
  • Advertising and promotion (A&P)A&P % of net salesBrand investment in media, sponsorship and consumer promotion (separate from trade spend paid to retailers).
  • Store networkRoll-out to a target networkStores trading in each period — openings, closures and selling area — which every per-store driver multiplies.
  • SalesOnline sales from active customers × orders × order valueSales of the format — stores, restaurants, cafés or an online channel — the revenue base of every retailer.
  • Cost of goods soldProduct margin less shrinkage and freightCost of the goods (or food) sold by the format, after supplier terms, freight, markdowns and shrinkage.
  • Store and channel operating costsPer-store wages, rent and other costsCosts of running the format — store wages, rent and occupancy, running costs, or an online channel's fulfilment and platform costs (rent here is the pre-AASB 16 cash view).
  • Store capex and depreciationCapex as % of salesFit-out spend on new stores, refurbishments and maintenance, and the depreciation and book value of store assets.
Key numbers

The numbers it tracks.

  1. 01organic growth at constant currency
  2. 02price and mix
  3. 03retail share of sales
  4. 04gross margin %
  5. 05marketing % of sales
  6. 06EBIT margin by maison
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.