Cranberry discount teen retailer rue21 Inc. hopes to raise $125 million in a public stock offering, taking advantage of what seems to be a rebound in the nation's stock market.

The filing for the initial public offering shows company officials think they can sell investors on the chain's resilience during the economic downturn, based on rue21's formula of identifying trends and getting merchandise into stores quickly at low prices.

Even as other teen retailers have struggled, rue21 reports it has shown a 4.1 percent increase in sales at established stores so far this fiscal year, and it plans to add 100 new stores to the 500-plus chain in fiscal 2010. The company has stores in 43 states.

"Our merchandise is designed to appeal to 11- to 17-year-olds who aspire to be '21' and adults who want to look and feel '21,'" the company explained in its regulatory filing, which said most of its products were priced below $35.

The chain, headquartered in Thorn Hill Industrial Park, traces its roots to the late 1970s. Over the years, it operated stores under several different names. The company struggled around the turn of the new century. Bob Fisch, a former president of the Casual Corner Group, has been leading the company for the past several years with the backing of a private equity owner, investment firm Apax Partners.

The retailer has grown steadily since 2003 when it emerged from bankruptcy with 168 stores. According to the filing, officials now believe that rue21 can grow to more than 1,000 stores within five years. A 189,600-square-foot distribution center in Weirton, W.Va., is being upgraded and should be ready by next year to support about 1,300 stores.

About half of rue21 stores are in strip shopping centers, one-quarter in regional malls and the rest in outlet centers. In general, the company focuses on small- and middle-market communities with populations between 25,000 and 200,000 people.

Sales totaled $391 million in the fiscal year ended Jan. 31, up from $297 million the previous year, according to the filing. Rue21 reported net income of $12.6 million in the fiscal year ended Jan. 31, up from $9.13 million the previous year.

By comparison, South Side teen retailer American Eagle Outfitters reported $2.99 billion in revenues and $179 million in net income during the fiscal year ended Jan. 31.

As of this summer, rue21 reported it had almost 6,000 employees. About 4,400 of those were part time. Close to 200 people work at the corporate headquarters and another 150 at the distribution facility.

No date or price has been set yet for the stock offering being underwritten by Merrill Lynch, Pierce, Fenner & Smith; Goldman, Sachs & Co.; J.P. Morgan Securities; and Piper Jaffray & Co.