Specialty retailer Rue21 revealed plans on Friday for an initial public offering within the next two months.
The company filed a registration statement with the Securities and Exchange Commission and firms typically go public within 60 days of the filing the statement, called Form S-1. The underwriters are Bank of America, Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Chase & Co. and Piper Jaffray & Co.
Rue21 targets young men and women ages of 11 to 17 with private and exclusive brands. The retailer has more than 500 stores in 43 states, mostly in strip centers, regional malls and outlet centers, as well as a Web site. The store locations are in small- and middle-market communities with populations between 25,000 and 200,000 people. Typically, Rue21 faces limited direct competition in the communities in which it operates, the company said. Merchandise is offered in apparel, accessories, footwear and fragrances at value prices.
According to the regulatory filing, for the 26 weeks ended Aug. 1, net income spiked 61.4 percent, to $8.3 million, from a year ago on a sales hike of 33.3 percent, to $233.1 million. Comparable-store sales rose 4.1 percent in the period.
For the year ended Jan. 31, net income rose 38.4 percent, to $12.6 million, or 55 cents a diluted share, from $9.1 million, or 40 cents, in the same year-ago period. Sales gained 31.8 percent to $391.4 million from $296.9 million. Comps in the recent year were up 3.7 percent on top of a 7.8 percent gain in the prior year.
The company said in the filing it uses a fast-fashion business model that incorporates domestic importers and suppliers, as well as a sourcing network to provide faster turnarounds.
Pennsylvania Fashions Inc., Rue21’s parent, filed for bankruptcy protection in February 2002, and the company emerged in May 2003 under the name Rue21. Its majority shareholder at the time was buyout firm Saunders Karp & Megrue, which, in February 2005, merged with private equity firm Apax Partners Worldwide.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast