RedEnvelope files for IPO

RedEnvelope Inc., the online and catalog retailer of upscale gifts, has filed an S-1 registration with the Securities and Exchange Commission for an initial public offering of common stock, the company said today. It said it will use the proceeds from the offering for general working capital, capital equipment, information technology projects and other general corporate purposes.

RedEnvelope, whose RedEnvelope.com is among Internet Retailer`s 2003 Best of the Web -- Top 50 online retail sites, is one of the more successful upscale gift retailers, says San Francisco-based retail consultant Duif Calvin. She notes that RedEnvelope is also particularly good at selling both online and in specialized print catalogs that cater to particular product promotions, such as for Father`s Day.

She adds that it would make sense for RedEnvelope to expand its print catalog operations, since some of its gifts are purchased online and sent to people who don`t normally shop online. "One-third of their recipients don`t have Internet access, so over the last 2-3 years, they`ve made an effort to become a two-channel retailer. I expect them to expand their print operations."

In the past year, the company has said it would also concentrate more on selling gifts to the corporate market -- an endeavor that poses a challenge at a time when many companies are cutting back on expenses, Calvin says.