May 7, 2012
Teen retailer Tilly's shares surge in market debut
May 7, 2012
Tilly's Inc's shares opened 23 percent above their IPO price in their market debut, as investors looked to grab a piece of the fast growing specialty retailer in an otherwise weak IPO market.
On Thursday, Tilly's priced its IPO of 8 million shares at $15.50, raising $124 million, above its expected range of $11.50 to $13.50 per share.
The Irvine, California-based company sold 7.6 million shares, while stockholders sold 400,000 shares.
Proceeds from the offering are being used to pay current shareholders of World of Jeans & Tops through which Tilly's sells its merchandise.
Net sales in 2011 increased 20 percent to $400.6 million. Net income jumped 41 percent to $34.3 million. Comparable store sales rose 10.7 percent in 2011, after a 6.7 percent increase in the prior year.
Tilly's operates 140 stores in 14 states across the United States. The company sells West Coast-inspired apparel, footwear and accessories including brands like Billabong International Ltd, Quiksilver Inc and Roxy.
Shares of the company were trading up 20 percent at $18.60 in early trade on Friday. Tilly's was among the most traded stocks on the New York Stock Exchange.
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