NEW YORK - Fashion retailer Tilly's Inc raised $124 million during its initial public offering on Thursday, pricing it above its expected range, according to an underwriter, highlighting the sector's appeal for many investors.

Photo: Tilly's

The Irvine, California-based company had planned to price shares between $11.50 and $13.50. It ended up selling shares at $15.50.

Tilly's will sell 7.6 million shares, while existing stockholders will sell 400,000 shares. Proceeds will be used to pay current shareholders of World of Jeans & Tops through which Tilly's sells its merchandise.

Net sales in 2011 increased 20 percent to $400.6 million. Net income jumped 41 percent to $34.3 million. Comparable store sales rose 10.7 percent in 2011, after a 6.7 percent increase in the prior year.

Tilly's operates 140 stores in 14 states across the United States. The company sells West Coast-inspired apparel, footwear and accessories including brands like Billabong International Ltd, Quiksilver Inc and Roxy.

While Tilly's has done well, some companies in the so-called surf and skate sector have lost traction as teens have gravitated towards other chains targeting the youth market like Urban Outfitters, Hollister and Aeropostale Inc.

"Teenage retail tends to be a fickle space," said retail analyst Lori Wachs, founder of Philadelphia-based Cross Ledge Investments.

Anaheim, California-based retailer Pacific Sunwear of California Inc said in December 2011 that it would close 200 underperforming stores over the next 14 months. It also received a $60 million loan from private equity firm Golden Gate Capital, which was used in part to fund lease buyout payments on these stores.

Everett, Washington-based Zumiez Inc, meanwhile, has performed well, reporting a 10.1 percent increase in same-store sales in April, which handily beat analyst expectations. Shares of Zumiez have improved 30 percent since the beginning of the year.

Tilly's will list on the New York Stock Exchange under the symbol TLYS. IPO underwriters include Goldman Sachs, Bank of America and Piper Jaffray.