Porsche makes a strong case that it shares the attractions of the best luxury brands: a growing market, high margins and economic resilience. But the German sports-car maker also comes with luxury’s common weakness: a powerful controlling shareholder.
On Monday, Dr. Ing. h.c. F. Porsche, as the company is formally known, said it would grow revenues by as much as 18% this year and achieve an operating profit margin above 20% in the long term, compared with 16% last year. Investors have wanted this kind of commitment ahead of the company’s initial public offering, scheduled for the fourth quarter. A margin above 20% would put Porsche in an exclusive league just a bit behind highly valued Ferrari.