Shoes.com raised $45 million from a non-brokered private placement of common shares. The proceeds were raised principally from existing shareholders, at a valuation of $275 million. The offering was significantly oversubscribed.
Shoes.com was formerly SHOEme, but changed its name after acquiring Shoes.com from Brown Shoe last year. Shoes.com also owns OnlineShoes.com and SHOEme.ca. Vancouver-based Hardy Capital Partners, run acquired OnlineShoes.com and SHOEme.ca for an undisclosed amount in July 2014.
“We have been great stewards of capital in the past generating explosive returns for shareholders, and the overwhelming level of interest in this financing reaffirms investor confidence in this exciting growth project and world class team,” said Roger Hardy, CEO of Shoes.com as well as the founder and former CEO of eyewear-e-retailer, Coastal Contacts Inc. “We are now fully funded to execute our growth strategy over the coming quarters as we build the world's leading omni-channel footwear and apparel destination.”
Shoes.com also noted that it had significantly strengthened its executive team in Q1 with the addition of Scott Julian, formerly of Zappos, as senior director of merchandising; Elsa D'Andrea, formerly of Lululemon, as director of style and care; Geoff Henshaw, formerly of Coastal Contacts, as VP of brand and retail strategy; and Tim Vipond, formerly of Goldcorp, as VP of corporate finance.
The company said it is well positioned to meet its 2015 gross revenue target of over $300 million. In its first quarter, revenues grew more than 80 percent.
