Orange County Business Journal

Tilly's Files for $100 Million IPO

Kari Hamanaka Friday, July 1, 2011

Irvine-based action sports retailer Tilly's Inc. filed documents with the Securities and Exchange Commission on Friday to raise $100 million in an initial public offering.

Tilly's sells clothes, shoes and accessories inspired by surfing, skateboarding and snowboarding from local brands such as Huntington Beach-based Quiksilver Inc., Volcom Inc. of Costa Mesa and Irvine's Billabong USA.

Tilly's operated 126 stores in 11 states at the end of April.

It’s a major move under new Chief Executive Daniel Griesemer, who joined the company in February from women's clothing and accessories retailer and catalog company Coldwater Creek in Idaho.

Griesemer replaced longtime head and company founder Hezy Shaked.

The retailer saw sales of $332.6 million last year, which was up 17.6% from a year earlier, according to the filing.

In the last five years, Tilly's entered 25 new markets and doubled its total number of stores.

Tilly’s has plans to continue that growth momentum.

The company said in its filing that it expects to open 13 stores this year and another 20 stores next year.

After 2012, Tilly’s executives are forecasting a 15% annual growth rate over the next few years with the potential to grow the chain to more than 500 stores nationally.

The company also has its sights set on growth of online sales with the addition of new brands and more exclusive merchandise.

Last year, Tilly’s online sales were up 46% and accounted for 10% of the company’s total sales.

Tilly’s initial public offering is the latest in a series of liquidity moves that has hit the action sports apparel industry this year with industry watchers predicting additional mergers or bids to go public.

The industry activity was set off with Paris-based PPR SA’s bid to buy Volcom in May for $608 million.

Only weeks after the Volcom deal, Irvine-based sandal maker Sanuk USA LLC announced it would be bought by Goleta-based shoe company Deckers Outdoor Corp.