SUMMIT
I’m in the middle of a vacation via a seven day cruise hitting up different points in the eastern Caribbean (San Juan, St. Maarten, and St. Kitts). As many know each destination also operates as a giant shopping mall as merchants are looking to cash in on the several thousand tourists that arrive by cruise ship everyday. The cruise lines themselves are also constantly pushing certain brands. One of the brands Celebrity is pushing the most is Del Sol. Del Sol is a retailer that sells apparel and other trinkets that change color when they are hit by sun light. The company has over 100 stores throughout the world.
I first heard of Del Sol not on a vacation, but when I was visiting with Robert Pederson CEO of ZAGG Inc. (ZAGG) in 2008. I asked him about his background and he told me about his family’s involvement in starting and managing Del Sol, and how he in particular was in charge of the inline store roll out. The game plan with ZAGG was to mimic what he successfully rolled out for Del Sol. Website first, mall kiosks second, and inline stores third.
Fast forward four years and ZAGG has grown from $10 million revenue run rate to $200 million, and the company is starting their third stage of the brands roll out, launching inline stores.
One of the books I’m reading on the cruise is “Blueprint to a Billion”, by David Thomson. The book studies US companies that have grown to $1 billion in revenue from their IPO since 1980. There have been 387 of these companies out of 7454 as of the publication of the book (2006). I’ll save my full book review for when I’m finished with it, but it got me thinking about ZAGG as potentially being one of these rare companies to get to $1 billion in revenue.
Most would still consider ZAGG a micro cap today ($350m market cap). For many of us at Micro Cap Club that were early to the story ($10-20m market cap) in 2008 ZAGG is much more of a large cap to us now 😉 At Micro Cap Club we are trying to find the next micro cap super stars.
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