J. Crew: IPO-Bound in 2014?

A Street report indicates the company is prepping for a deal

   

J. Crew Group appears to be gearing up for an IPO in 2014, according to a report in TheStreet.com. Although, it looks like the process is still in the early stages. But as seen with similar transactions like Burlington Stores (BURL), a J. Crew deal could get a nice reception from investors.

Of course, the company is national retailer of apparel and accessories. And yes, one of its notable customers is Michelle Obama.

Besides its namesake brand, J. Crew also owns crewcuts and Madewell. In all, the company operates 309 retail stores, 112 factory outlets and two clearance locations.

And the company has been growing at a nice pace. In the second quarter, revenues increased by 6.4% to $559.1 million. There was also net operating income of $55.8 million.

No doubt, it helps that J. Crew has a legendary CEO, Millard “Mickey” Drexler. Keep in mind that — during the 1990s — he turned The Gap (GPS) into a powerhouse.

He also worked his magic at J. Crew.  Drexler took the helm in 2003 and in the same year, took the company public.  Then by 2011, he put together a $2.86 billion going-private transaction, with the  financing from TPG Capital and Leonard Green & Partners.

All in all, the deal should be a nice money maker.  In fact, J. Crew recently dished out a $500 million dividend payment to its owners.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/j-crew-ipo-bound-2014/.

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