Body Central Corp. (OTCQB:BODY), the Body Shop company, is expected to price its IPO this week.
Business Overview (from prospectus)
We opened our first Body Shop store in 1973 in Jacksonville, Florida, where our corporate headquarters is located. Our current business is focused on opening Body Central stores and developing the Body Central and Lipstick brands and on moving away from the use of Click to enlargethe Body Shop name for our stores and as a brand. In October 2006, our founders, members of the Rosenbaum family, sold a controlling interest in Body Central to a group of outside investors led by WestView Capital Partners, L.P. In recent years, we have completed numerous initiatives that have strengthened our business and positioned us for future growth.
Offering: 5 million shares at $14 - $16 per share. Net proceeds of approximately $31.5 million will be used for debt repayment, approximately $3.5 million for redeeming non-convertible preferred stock adn approximately $8.0 million for general corporate purposes.
Net revenues increased by 18.4% to $119.3 million for the twenty-six weeks ended July 3, 2010 from $100.8 million for the twenty-six weeks ended July 4, 2009... Gross margin increased to 33.3%, for the twenty-six weeks ended July 3, 2010 from 28.9% for the twenty-six weeks ended July 4, 2009...Selling, general and administrative expenses increased by 14.5% to $26.6 million for the twenty-six weeks ended July 3, 2010 from $23.2 million for the twenty-six weeks ended July 4, 2009...Net income increased $4.7 million to $5.7 million for the twenty-six weeks ended July 3, 2010 from $1.0 million for the twenty-six weeks ended July 4, 2009...
The specialty-apparel retail market is highly competitive. We compete primarily with other specialty retailers and Internet and catalog businesses that specialize in women's apparel and accessories targeting customers in their late teens and twenties. We believe the principal basis upon which we compete is by offering quality, current fashions at value prices. We believe that our success is dependent on are our in-store experience, our Body Central brand, our current fashions and desirable store locations.
Our success also depends in substantial part on our ability to respond quickly to fashion trends so that we can meet the changing demands of our customers. We believe our competitors include other specialty retailers such as Forever 21, Wet Seal (WTSLA), rue21 (NASDAQ:RUE), Charlotte Russe and Aéropostale. Our market is highly competitive and many of these retailers have substantially greater name recognition, as well as financial, marketing, and other resources, and devote greater resources to the sale of their products than we do. We may face new competitors and increased competition from existing competitors as we expand into new markets and increase our presence in existing markets.