Tilly’s Post IPO Stock Surges
Prices surged on May 4, the first day of trading of stock for Tilly’s Inc. after the highly anticipated initial public offering for theIrvine, Calif.–based surf and skatewear retailer.
Traded under the symbol “TLYS,” stock was initially forecast to sell in a range of $11.50 to $13.50 per share at the New York Stock Exchange. But it started selling at $15.50 per share. Close to the end of the trading day, share price increased 8.45 percent to $16.81. Tilly’s offered 7.6 million shares and forecast it will raise $107.6 million. The Irvine company plans to use more than $26 million to fund a rollout of more physical stores and develop its e-commerce. The remaining $ 84 million will compensate the families of founders Tilly Levine and Hezy Shaked.
Tilly’s debuted in 1982 and currently runs 145 stores and an e-commerce shop (www.tillys.com). It specializes in surf and skate-branded clothing of Billabong, Quiksilver, Fox, Volcom, Vans and LRG.
While the market for surf and skate retail is crowded, retail analyst Jeff Van Sinderen said Tilly’s offers this market something unique. “Tilly’s has a real girls’ business,” said Van Sinderen, an analyst with B. Riley & Co. “It’s truly dual-gender.”For Tilly’s rivals Pacific Sunwear and Zumiez, young men’s fashions make up the majority of their merchandise mix.—Andrew Asch
