It was another disappointing year for Rapha, the British premium cycling clothing brand synonymous with well-off middle-aged men in Lycra (MAMILs) often found riding expensive bicycles decked out in pro-like cycling kits at gran fondos.

For the 8th year in a row the struggling company was not profitable, loosing £17.2m for the 2024 fiscal year while the investment value of the the business plummeted by £102m, to about £67m.

In 2017 the company was purchased for £200m by Steuart Walton and Tom Walton, grandchildren of the famous Sam Walton who built retail giant Walmart. The brothers, avid cyclists, decision to buy Rapha was more of a ‘passion purchase’ than a financial investment – which is a good thing since it has never been profitable since they acquired it.

To try and right the Rapha ship, the company is focusing on improving product quality, dropping non-core products and moving away from discount pricing, instead trying to attract and retain cyclists willing to pay high prices for high quality gear (£300 bibs shorts, £200 jerseys £100 sweatshirts and £50 t-shirts). Gone are lifestyle products like limited edition £2,735 Rapha branded espresso machines.

It’s a big ask.

In recent years users report Rapha quality has declined to that more typical of a Walmart product than a bespoke premium brand. “My core bibs are literally see through after one year. Rapha is Walmart shit. But I think at this point I’d rather have Walmart written across my body than Rapha,” one user posted on the subreddit CyclingFashion.

In addition, the company announced last week that it will close almost a quarter of its Rapha Clubhouse retail locations. USA stores in Chicago, Seattle, Miami, Boulder, plus one in Manchester GBR, will be shuttered over the next few months.

To try and attract new amateur cyclists interested in buying premium cycling apparel, the company pulled out of sponsoring WorldTour team EF Pro Cycling, instead inking a deal with USA Cycling as their clothing supplier ahead of the 2028 Los Angeles Olympics. Initially USA Cycling and Rapha are dressing national team riders in pastel Orange, White and Blue, rather than in country’s official colors – Red, White and Blue.

On the turnaround Rapha CEO Fran Millar said, “Transformation takes time, and we aren’t expecting to see immediate results but the strategic decisions we are taking, including the ones we are announcing today, will enable us to become profitable again as a business and support our vision to use the transformative power of cycling to make a difference to the world.”

Only time will tell if Millar can actually pull it off and help the Walton brothers show the world they too have the same business acumen as their grandfather.

Photo Credit: Instagram/richie_porte

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