An advertising watchdog’s report found dozens of claims that it says were false and deceptive. Wal-Mart blames suppliers.
The web-only retailer of customized products like T-shirts hopes to raise up to $80 million.
CafePress Inc. expects to raise up to $80 million in an initial public offering of stock, the company said Friday. The web-only retailer, which lets customers customize products such as T-shirts, coffee mugs and baby clothes, says it plans to use the proceeds from the IPO for general corporate purposes, including working capital and capital expenditures.
The retailer, No. 122 in the Internet Retailer Top 500 Guide, revealed in its S-1 filing with the Securities and Exchange Commission that it had $127.9 million in revenue in 2010, up 24% from $103.5 million in 2009. But while revenue rose, net income fell 18% to $2.7 million from $3.3 million, the company says. It attributes the decline in net income partly to a 50% rise in sales and marketing expenses to $26.5 million last year from $17.7 million in 2009.
For the first quarter ended March 31, 2011, CafePress said in the S-1 filing that revenue rose 46% year over year to $32.0 million from $21.9 million, as its net loss widened to $831,000 from $40,000.
J.P. Morgan Securities LLC and Jefferies & Company Inc. are acting as joint book-running managers for the stock offering, and Cowen and Company LLC is acting as a co-manager, CafePress says.
In other IPO action, Internet radio company Pandora Media Inc. also filed on Friday and expects to raise up to $202.6 million, the company says in its S-1 filing with the Securities and Exchange Commission.
Pandora, which provides Internet-streamed radio programs and earns most of its revenue through online advertising, says in the S-1 filing that its revenue for the fiscal year ended Jan. 31, 2011, was $137.8 million, up 150% from $55.2 million in the prior fiscal year. Revenue from “subscriptions and other” sources, meantime, though relatively small, rose 265% to $18.4 million from $5.0 million.