Apparently, Wall Street likes skateboards. Zumiez, which operates action-sports retail stores mostly in malls, saw its stock soar 38. 2 percent on its...
Apparently, Wall Street likes skateboards.
Zumiez, which operates action-sports retail stores mostly in malls, saw its stock soar 38.2 percent on its first day of public trading, closing up $6.87 at $24.87 a share on the Nasdaq market. Its ticker is ZUMZ.
The Everett retailer originally planned to offer its stock between $15 and $17 a share, but priced it yesterday at $18 in a sign of strong demand.
Zumiez (pronounced zoo-MEEZ) sold 3.125 million shares, raising $56.3 million. Of that, the company received $33.8 million, minus fees associated with the offering. Individual shareholders pocketed $22.5 million.
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The retailer, founded in 1978 by Thomas Campion, operates 140 stores in 18 states. It caters to 12- to 24-year-olds who buy skateboarding, surfing, snowboarding and BMX clothing and gear.
The retailer has ramped up growth in the past five years. Since 1999, the company has expanded from 53 to 140 stores. And comparable-store sales — sales at stores open at least a year, a key retail gauge — rose an average 10.3 percent each fiscal year.
The company posted $153.6 million in sales for the fiscal year ended Jan. 29, a 30.3 percent jump versus the year before. Profit rose 62.4 percent to $7.3 million, or 56 cents a share.
Zumiez targets an increasingly important demographic to mall operators: teens with disposable incomes. Consumers aged 12 to 19 spent an average $91 a week in 2004, according to Northbrook, Ill.-based Teenage Research Unlimited.
Campion, 56, now chairman of the board, owns 3.8 million shares, or 29.1 percent of the company, after the offering, according to government filings. Richard Brooks, 45, is the company’s chief executive officer.
Zumiez said it would used proceeds from the IPO to fund new store openings, plus make store and infrastructure improvements.
Monica Soto Ouchi: 206-515-5632 or email@example.com