Teavana Holdings, Inc.
Thesis
Teavana went public with a high valuation based on expected growth, but the company has shown unimpressive same store sales growth and declining productivity at new locations, indicating it is not a breakout retail concept.
Did it work?
The thesis dynamics played out: Teavana's same-store sales decelerated and new-store productivity weakened after its 2011 IPO, and the stock collapsed from post-IPO highs above $30 to roughly $10 before Starbucks agreed to acquire it for $15.50/share in late 2012 — below its $17 IPO price. Starbucks ultimately shut down all Teavana retail stores in 2017-2018, confirming it was not a breakout retail concept. However, with no price data provided and unknown pitch timing (an early short would have been badly underwater during the initial post-IPO run-up), confidence must be low.