Spanx Inc.

Private Company Ticker Symbol: (SPANP)

BUSINESS SUMMARY

Spanx Inc. is a privately-held retailer of footless and footed hosiery, tights, body shapers, swimsuits, and active wear. While Spanx Inc.'s offerings are primarily for women, Spanx Inc. also produces a men's line of shaping undershirts and briefs. Spanx Inc. was founded in 1998 by Sara Blakely who remains the sole owner and is headquartered in Atlanta, Georgia.

Jump to Spanx Inc.: Detailed Business Description for more details on Spanx Inc. products and services, financial structure, Spanx Inc. major business events, and more.

OVERVIEW & CORPORATE ORGANIZATION

Basic Information
Company Tags: Woman Owned Fiscal Year End: City: Postal Code: Country: Website: 12/31 Atlanta 30326 United States www.spanx.com

State/Province: Georgia

Corporate Organization
Founders: Sara Blakely

INDUSTRY INFORMATION

Industry Codes
PICS: 400114, 900102 NAICS: 448, 448190, 519130, 5322 SIC: 2389, 2711, 5136

PrivCo Industries (Sector > Industry > Sub-Industry)

Consumer Products > Apparel, Footwear & Accessories > Specialty Apparel Internet > E-Commerce > Online Apparel, Footwear & Accessories Retail

The PrivCo Industry Classification System (PICS) is our proprietary, modernized industry classification system, geared especially toward privately-held companies and including newer emerging sub-industries that are not reflected in other outdated industry classification systems, such as SIC and NAICS.

CHARTS, FINANCIALS, AND STATISTICS (TABLE FORMAT)

Below are Spanx Inc. financials and other business metrics displayed in table format. (Cut and paste into Excel spreadsheet if desired) 2010 2009 Online Revenues $22,950,000 $20,000,000 Employee Figures 2011 Total Employees 125 Productivity $1,920,000 (Revenue/Employee) Income Statement 2011 Revenues $240,000,000 Notes * Spanx Inc. fiscal year end: 12/31

CHARTS, FINANCIALS, AND STATISTICS (GRAPHS)

Below are Spanx Inc. financials and other business metrics displayed in graph format. (Copy & paste graphs directly into your presentation if desired.)

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DETAILED BUSINESS DESCRIPTION: SPANX INC.

History

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Spanx Inc. was created in 1998 by Sara Blakely. Blakely had been frustrated by her current pantyhose and looked to create a footless stocking that would not ride up the leg. Investing her life savings of $5,000, Blakely researched patents and business development, created a footless prototype, and operated Spanx out of her Decatur, Georgia apartment. By 2000, Spanx had entered the mainstream due in large part to an endorsement by Oprah Winfrey.

Business Model

Spanx Inc. is a privately-held creator and retailer of footless and footed hosiery, tights, body shapers, swimsuits, and active wear. While its product line is primarily for women, Spanx recently launched a men's line which includes fitted undershirts and briefs. Spanx's line of 'shapewear' is manufactured in over 15 countries with final alterations occurring in the United States.

Spanx sells its 'shapewear' products through approximately 11,500 distribution channels in 40 countries including department stores, boutiques, and online retailers. Spanx also operates an online store through its website www.spanx.com. During 2011, domestic sales accounted for 85% of Spanx overall revenue.

Strengths

Spanx Inc. benefits from a strong reputation within its industry as its name and founder, Sara Blakely, are nearly synonymous with 'shapewear.' The Company has innovated beyond its original footless hosiery prototype and now offers approximately 200 products of shapewear, active wear, and swimsuits. Spanx is the shapewear industry leader with strong brand loyalty from its clientele. Based on the loyal customer base's word of mouth, Spanx has never spent money to advertise.

Spanx also benefits from a strong financial position as the Company has zero debt and has never accepted outside funding. The Company has been profitable since its first year, and has grown organically through its own operating revenues. Spanx is well-positioned for future growth due to its excellent financial position. Within the shapewear industry, Spanx offers the highest price point, but the Company remains the most popular with women across income brackets. Furthermore with production in over 15 countries, Spanx benefits from considerable supply chain cost advantages.

Weaknesses

From a retail industry perspective, Spanx is susceptible to fluctuations in consumer spending habits and credit availability due to macroeconomic conditions. Additionally, various shape wear companies and established brands have emerged with shape wear lines at lower and equivalent price points to challenge Spanx's leading market position. Additionally, as Spanx's products are produced abroad, the Company is susceptible to exchange rate risk which could damage its excellent supply cost advantages.