IPOs mean advertising funding is on the way: Fashion Retail
Steve’s breakdown: Ya gotta keep an eye on client IPOs. Cole Haan, an ex-client of mine, is a great client and has been getting more edgy with the advertising, which is nice . . .
GREENLAND, NH: Cole Haan is the latest U.S. retailer to file for an initial public offering.
The New Hampshire-based footwear and accessories brand, owned by private equity firm Apax Partners, filed with an initial offering with plans to list on Nasdaq under the ticker symbol “CLHN.” Cole Haan said it plans to raise up to $100 million, which is likely a placeholder sum as it works to determine exact terms.
Cole Haan, which Nike sold to Apax in 2013, had revenue of $686.6 million for the year ended June 1, 2019, up 14.1% from the year-ago period. Profit rose 43.1% to $33.1 million. The brand sells in 64 countries, including through 368 stores and over 450 wholesale accounts.
“Seven years ago, we began our journey as an independent company and set out to transform a classic domestic dress shoe company with a 90-year heritage into something even bigger — a global lifestyle brand serving always-connected, active professionals with innovative footwear and lifestyle accessories,” said Jack Boys, CEO, Cole Haan, in a letter to potential investors that is part of the filing.
In its prospectus, Cole Haan cited the coronavirus outbreak as a risk factor, saying it could materially impact its sourcing and manufacturing operations. The company noted that a portion of its products are manufactured in China and materials for its products are sourced in China by its manufacturers within Greater China and in other affected regions.
In January, CasperSleep filed for an IPO. J. Crew Group’s Madewell filed for an IPO near the end of 2019.
BofA Securities and Morgan Stanley are acting as co-lead bookrunning managers for Cole Haan’s proposed offering. J.P. Morgan and Goldman Sachs & Co. LLC are also acting as lead bookrunning managers. Jefferies, Baird, Cowen, Piper Sandler and Stifel are acting as bookrunning managers.