DTLR Holding, Inc. announced that due to a unspecified “business development,” it will not proceed with its planned initial public offering.

The company declined to comment beyond its one-sentence statement.

In early November, DTLR, formerly known as Downtown Locker Room, revealed plans to sell up to $75 million in stock in an initial public offering. With recent investments in its management and infrastructure, the 95-unit chain cited the potential to reach 250 to 300 stores.

An updated filing with the Securities & Exchange Commission on Dec. 2 gave no indication of the withdrawal but revealed strong preliminary results  for the third quarter ended Nov. 2:


  • Net sales for the thirteen weeks ended November 2, 2013 are expected to be approximately $48.1 million, or an expected increase of approximately $8.5 million, or 21.5 percent, compared to net sales of $39.6 million for the corresponding period in 2012. Sales growth was primarily driven by an increase in comparable store sales of $5.5 million and $3.0 million from non-comparable stores.
  • Comparable store sales increased 16.8 percent for the thirteen weeks ended November 2, 2013 following a decrease of 2.3 percent in the corresponding period in 2012. Comparable store sales were positively impacted by strong performance in both footwear and apparel.
  • Income from operations for the thirteen weeks ended November 2, 2013 is expected to be between $2.7 million and $3.0 million, compared to income from operations of $0.5 million in the corresponding period in 2012. The expected increase in income from operations was primarily the result of improvement in gross margin on higher sales volume, partially offset by costs of approximately $0.1 million related to management fee and related expenses and $0.1 million related to expenses associated with refinancing of debt. Income from operations for the thirteen weeks ended November 3, 2012 was impacted by costs of approximately $1.1 million related to management bonuses, $0.2 million related to expenses associated with refinancing of debt and $0.1 million related to management fee and related expenses.
  • As of November 2, 2013, DTLR operated 97 stores. Two additional stores have subsequently opened in the fourth fiscal quarter, bringing the total to 99 stores.