Tilly's likely has an Ollie or a Hang Ten up its stores' sleeves. Through its World of Jeans & Tops subsidiary, the company operates a chain of specialty retail stores and website that sell surf and skateboard apparel, footwear, skateboards, and accessories. Its stores offer Hurley, Levi's, LRG, Neff, and other brands, as well as its own brands (RSQ, Full Tilt, Blue Crown, and Infamous). The fast-growing retail chain operates about 140 stores in more than a dozen states under the Tilly's banner; most are in California, Arizona, and Florida. The company traces its roots back to 1982, when founders Hezy Shaked and Tilly Levine opened their first store in Orange Country, California. Tilly's went public in 2012.
The apparel retailer raised about $124 million with its May IPO. Tilly's will use a portion of the proceeds to fund a distribution to pre-IPO company shareholders. The distribution is related to a change in World of Jeans & Tops' company type from an "S" to a "C" corporation, a designation that affects the way the company is taxed. Tilly's may also use some of the proceeds for general corporate purposes and to acquire other businesses. Prior to its filing, Tilly's was majority-owned by Levine (29%) and Shaked (48%) through two separate trusts. Post IPO, the Shaked and Levine families control about 96% of the company's voting power.
The IPO capitalized on the company's strong sales growth and operating results. In fiscal 2012 (ends January) net sales increased 20% vs. the prior year, with operating income up 40% over the same period. Same-store sales (generally considered the best indicator of a retailer's overall health) at Tilly's stores increased more than 10% in fiscal 2012.
Since its founding, the company has been growing rapidly, especially in recent years, during which the number of its store locations have gone from 32 in 2004 to 140 2012. Tilly's future ambitions include opening new stores in an effort to establish a national presence. The company believes it can expand its store base to more than 500 locations by 2022.
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