MOSSIMO TO LAUNCH LINE OF WOMEN’S SPORTSWEAR
Byline: Carol Emert
WASHINGTON — Mossimo Inc. plans to launch a new young women’s designer sportswear line for the fall 1996 season, adding to its current women’s offerings of eyewear and licensed swimwear, bodywear and accessories.
A registration statement for Mossimo’s planned initial public offering said that the Irvine, Calif.-based company, known primarily for its young men’s activewear, intends to sell the women’s line through the junior departments of better department stores and through specialty stores. Some in-store shops will be set up, although no details were given.
The line will consist primarily of denim tops, pants and jackets, knit tops, dresses, shorts, sweaters and leather jackets that will “be characterized by distinctive fabrics and contemporary styling,” the registration statement said.
“The company believes that the success of its licensed lines of women’s swimwear, bodywear and accessories is a favorable indicator of market acceptance for women’s products bearing the Mossimo name,” the document said.
Mossimo is planning to open a showroom in Chicago to display the line and one in Dallas that will display both men’s and women’s lines. It currently operates showrooms only in New York and Irvine. Four marketers for the women’s line were recently hired.
Mossimo’s sales have grown at an annual compounded rate of 46.6 percent since 1990. For the most recent nine months ended Sept. 30, net sales of its in-house products increased 75 percent against the comparable 1994 period, to $53.8 million from $30.7 million. Sales for all of 1994 rose to $44 million from $22 million in 1993.
Net income, meanwhile, more than doubled to $9.1 million in the first nine months of 1995 from $4.4 million for the 1994 period. Net income grew to $6.6 million in 1994 from $1.5 million in 1993. The net income figures were adjusted for changes in the company’s tax status as a result of the planned offering.
In the first nine months of this year, Mossimo generated royalty income of $2.5 million. Of that, 33.4 percent came from women’s swimwear and bodywear and 36.4 percent came from men’s and women’s accessories.
Mossimo expects to net $25.2 million in proceeds from 2 million shares sold in the initial public offering. In addition to opening more in-store shops, the money will be used to pay down debt to factors and others and to outfit a new headquarters and distribution facility.