The Vitamin Shoppe (NYSE:VSI) raised $155 million in its IPO yesterday, almost $50 milliion more than it had planned on in its prospectus. It was the first retail IPO since 2007. According to Bloomberg:
The listing is Vitamin Shoppe’s second foray into the IPO market, after the initial share sale of its online unit, VitaminShoppe.com, in October 1999 lost more than 90 percent for investors in less than two years as dot-com stocks collapsed.
Business Overview (from prospectus)
We are a leading specialty retailer and direct marketer of vitamins, minerals, herbs, supplements, sports nutrition and other health and wellness products. For each of the past five years, we have been the second largest in retail sales and the fastest growing national VMS specialty retailer. We market over 700 different nationally recognized brands as well as our proprietary Vitamin Shoppe, BodyTech and MD Select brands. We believe we offer the greatest variety of products among VMS retailers with approximately 8,000 stock keeping units (“SKUs”) offered in our typical store and an additional 12,000 SKUs available through our websites and other direct sales channels. Our broad product offering enables us to provide our target customers with a selection of products not readily available at other specialty VMS retailers or mass merchants, such as drugstore chains and supermarkets. We target the dedicated, well-informed VMS consumer and differentiate ourselves by providing high quality products at competitive prices in an educational and high-touch customer service environment. We believe our extensive product offerings, together with our well-known brand name and emphasis on product education and customer service, help us bond with our target customer and serve as a foundation for strong customer loyalty.
Offering: 9.1 million shares at $17.00 per share. Net proceeds will be used for the pro rata redemption of 36,762 shares of Series A Preferred Stock for approximately $63.6 million, the repurchase of approximately $39.9 million in aggregate principal amount of the company's Notes and the payment of approximately $0.4 million of related premiums; the payment of offering related expenses of approximately $3.1 million.
Net sales increased $36.6 million, or 11.9%, to $343.7 million for the six months ended June 27, 2009 compared to $307.1 million for the six months ended June 28, 2008... Cost of goods sold, which includes product, warehouse and distribution and occupancy costs, increased $24.1 million, or 11.7%, to $230.9 million for the six months ended June 27, 2009 compared to $206.8 million for the six months ended June 28, 2008... As a result of the foregoing, gross profit increased $12.5 million, or 12.4%, to $112.8 million for the six months ended June 27, 2009 compared to $100.3 million for the six months ended June 28, 2008...As a result of the foregoing, income from operations increased $4.9 million, or 24.4%, to $24.8 million for the six months ended June 27, 2009 compared to $20.0 million for the six months ended June 28, 2008.
The U.S. nutritional supplements retail industry is highly competitive and fragmented. According to the NBJ and public filings with the SEC, no single retailer accounted for more than 5% of total industry sales in 2008. Competition is based primarily on quality, product assortment, price, customer service, marketing support and availability of new products. We compete with publicly and privately owned companies with broad geographical market coverage and product categories. We compete with other specialty and mass market retailers including Vitamin World®, GNC®, Whole Foods® (WFMI), Costco® (NASDAQ:COST) and Wal-Mart® (NYSE:WMT), Internet and mail order companies including Puritan’s Pride®, vitacost.com (NASDAQ:VITC), Bodybuilding.com® , Doctors Trust®, Swanson® and iHerb® in addition to a variety of independent health and vitamin stores.
- Company website
- Wall Street Journal: 'Vitamin Shoppe Jumps in Debut'
- Bloomberg: 'Vitamin Shoppe Raises $155 Million, More Than Planned'
- Tom Taulli: 'Vitamin Shoppe pumps up its IPO'
- Renaissance Capital: 'First Day Pop for Vitamin Shoppe IPO?'