Tilly's reports Q1 comps, IPO expected this week

It's a big week for Tilly's and for its founders who will receive nearly all of the proceeds from the IPO. We have details about Q1 results and how much founders should net.

Published: May 13, 2013

Tilly’s comparable sales rose 4.3% for the quarter ended April 28, the company reported in an updated filing with the SEC this week.

By comparison, in the first quarter in 2011, same store sales rose 18.2%.

Co-founder and Chief Strategy Officer Hezy Shaked

Tilly’s stock is expected to start trading on the New York Stock Exchange this week under the symbol TLYS. Several publications that cover IPOs have described Tilly’s as well run and named Tilly’s a hot IPO to watch.

The company said in its prospectus it expects net proceeds from the IPO to be approximately $86.4 million.

The majority of that money – $84 million – will go to company founders Tilly Levine and Hezy Shaked and their related trusts to pay them for undistributed earnings over the years. Levine and Shaked, who are no longer married, opened their first store in Orange County in 1982.

Ezekiel’s Mike Martin and Tilly’s Co-founder Tilly Levine at Magic this year.

According to filings, the Hezy Shaked trust will receive $42 million and the Tilly Levine trust will receive $25.2 million. The balance – $8.4 million each – will go to two trusts controlled by their daughters, Amy Shaked and Netta Schroer-Shaked.

After the IPO, Tilly’s common stock will have two classes, and the Shaked and Levine families will control approximately 96% of the total voting power, according to the company’s prospectus.

Currently Tilly’s operates 145 stores.