Xero Shoes is offering a limited number of shares of stock in the company as part of an equity crowdfunding campaign intended to raise up to $3 million. According to a filing with the Securities & Exchange Commission, XERO is looking to sell 750,000 shares of its stock at $4 a share.
“The democratic idea behind crowdfunding made immediate sense to me. Rather than limiting investors to the wealthy, we want to open this opportunity to anyone, especially our customers,” said Xero Shoes owner and co-founder, Lena Phoenix. “They helped put us where we are now, so they should have the opportunity to step into the future with us.”
According to the SEC filing, Xero Shoes revenues in 2015 reached $1.4 million, almost double the $772,000 in 2014. Revenues in 2016 grew to $2.73 million. Since launching in late 2009, over $6.6 million worth of shoes, sandals and sandal kits have been sold.
In 2016, 68 percent of sales were directly through the Xero Shoes website, with 32 percent of sales coming from Amazon, eBay, retail stores, international distributors and other third-party sellers. Gross sales on Amazon’s Fulfillment by Amazon (FBA) program accounted for 16 percent of Xero Shoes total sales in 2016.
Excluding non-cash compensation, EBITDA margin has increased from a negative -17.1 percent in 2014 to 9.3 percent in 2015. For full year 2016, Xero Shoes is estimating an EBITDA margin, excluding non-cash compensation, of 10 percent. As of January 1, 2017, Xero Shoes had a cumulative customer base of over 75,000 in 94 countries.
According to the company, wholesale channel sold product in 61 retail doors with average sales of $5,280 per door.
Any securities offered are qualified in their entirety by and subject to the terms of the Offering Circular, which can be found at https://xeroshoes.com/sec.
While XERO expects to be able to accept subscriptions from all US states, it is currently awaiting final approval in certain of the states listed above. For this reason, it can only accept ‘indications of interest’ from residents of Florida and Texas at this time. You can indicate your interest by clicking on the invest button at https://invest.xeroshoes.com, creating a profile, and providing the necessary subscription information. Interest is not binding.
Further information can be found at https://invest.xeroshoes.com