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eToys files for offering
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February 17, 1999: 1:56 p.m. ET
Santa Monica-based toy retailer hopes to raise $115 million with IPO
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NEW YORK (CNNfn) - Hoping to cash in on the recent mania for any and all Internet-related companies, online toy retailer eToys filed for a $115 million initial public offering Wednesday.
EToys saw astronomical growth during the holiday season last year. For the fourth quarter of 1998, the Santa Monica-based company posted sales of $21.9 million, a gain of more than 3,700 percent over sales in the previous quarter of $608,000.
As is the case with many online retailers, eToys has yet to record a profit. Despite impressive revenue growth, the company's loss of nearly $10 million was almost triple that of the previous quarter.
The exact number of shares and estimated pricing range haven't yet been determined, but the two-year old company hopes to generate as much as $115 million through the offering. Goldman Sachs is the lead underwriter.
EToys noted in its IPO filing that it would have difficulty repeating its fourth-quarter growth. Pointing out that toy retailers generate more than half their yearly sales during the holiday season, the company stated in its filing with the SEC, "In particular, a disproportionate amount of our net sales have been realized during the fourth calendar quarter and we expect this trend to continue in the future."
EToys' customer base has grown to 320,000 since the Web site began selling product online in October of 1997.
The company's biggest competitor, Toys 'R' Us, has had trouble translating its offline cachet to online sales. Toys 'R' Us saw disappointing Internet sales during the holiday season last year, due in large part to a poorly planned marketing strategy, inadequate technology, and general inexperience with e-commerce. 
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eToys
Toys 'R' Us
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