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Details on Industry Insight.
One of the industry’s biggest retail customers, Tilly’s, filed to go public this morning.
Tilly’s, founded by Hezy Shaked and Tilly Levine in 1982, operated 126 stores in 11 states as of April 30.
The company has been on a major expansion streak, more than doubling its size in the past five years, according to the filing.
The company invested $20 million during that time to upgrade its distribution center and information systems and thinks it can grow to more than 500 stores with little additional capital investments.
Tilly’s mainly uses cash from existing operations to open new stores, and it has no borrowings against its $15 million credit line with Wells Fargo.
New stores typically generate $2.2 million in net sales in their first year.
Tilly’s average store size is 7,800 square feet.
Here are some more details about Tilly’s business:
Net sales: $332.6 million, up 17.6% from 2009
Same store sales: up 17.6%
Operating income: $24.9 million, up 16.4%
Net income: $24.4 million, up 17%
Gross margin: 30.9%
Ecommerce sales: up 46% from prior year to $32.8 million, accounting for 10% of total net sales.
Average net sales per square foot: $326
Cash and equivalents (at fiscal year end): $29.3 million
Long term debt: $5.2 million (a capital lease on corporate headquarters and distribution center)
Percentage of sales from third party brands: 70%
2011: 13 new stores
2012: 20 new stores
After that: grow 15% each year
Net sales: up 29%, to $83.1 million
Operating income: 178 to $5.0 million
Same stores sales: up 18.2%
Seth Johnson, who briefly served as CEO of PacSun and also spent several years at Abercrombie & Fitch as COO, is on Tilly's board of directors.