The IPO market is booming in 2021. In many cases, footwear and apparel companies are leading the charge.
In August alone, shoe brands Allbirds and On filed an initial public offering with the Securities and Exchange Commission. The following month, On valued its IPO above its target range to raise $ 746.4 million, selling 31.1 million shares for $ 24 each.
Additionally, Authentic Brands Group, which owns numerous fashion and entertainment brands, filed for an IPO in July. And plus size retailer Torrid, which also has a shoe line, also filed the same month.
Overall, a favorable retail environment is boosting these fashion and shoe IPOs at a critical time for many companies.
Overall, major shoe retailers and brands have posted superior sales and profit increases in recent quarters, underscoring the recovery across the industry. In many cases, record sales figures have spurred a renewed desire to invest in the retail industry.
âInvestors are looking for companies with high growth potential,â said Matt Powell, senior athletics advisor for The NPD Group Inc. âThe footwear industry is strong right now, so there are a lot of ‘interest.”
From Affirm to ThredUp, here are the most notable fashion and footwear IPOs this year so far. Check back for more updates.
Affirm Holdings Inc., which offers installment loans to online shoppers, filed a request to raise $ 935 million on its list in January. The company, founded by PayPal co-founder Max Levchin in 2012, has sold 24.6 million Class A shares at $ 49 apiece. In April, Affirm acquired the Returnly returns platform after investing in the platform in 2019.
When it filed for its IPO in August, sustainable footwear brand Allbirds introduced an ambitious and environmentally friendly new structure to go public that would help the company prioritize its environmental and social goals. In its filing, Allbirds highlighted the growth in net revenue, from $ 126 million in 2018 to $ 219.3 million in 2020. However, the company also disclosed a net loss of $ 25.9 million in 2020.
Group of genuine brands
ABG, the company behind several high-profile brand and retail acquisitions, filed for an IPO in July. Led by Jamie Salter and Nick Woodhouse, the company has a portfolio of more than 30 brands, including Nine West, Forever 21, Juicy Couture, Frye, Eddie Bauer, Tretorn, Bandolino, Sports Illustrated, Marilyn Monroe and Shaquille O’Neal, which helped the company secure its new acquisition target: Reebok.
The heritage shoemaker has made quite an appearance in recent years. Driven by a strong performance from its e-commerce platform and sales increases in the Americas, Europe, the Middle East and Africa, as well as China, the company debuted on the London Stock Exchange in late January and raised $ 1.8 billion, or $ 1.3 billion. pound sterling.
In September, the running brand On valued its initial public offering above its target range to raise $ 746.4 million, selling 31.1 million shares for $ 24 each. In its case, the Swiss running brand backed by Roger Federer described itself as “one of the fastest growing athletic sports companies in the world”, with net sales growing at a growing rate. annual compound of 85%. Analysts are currently divided over their recommendations for On.
Peer-to-peer buying platform Poshmark Inc. raised $ 277 million when it went public in January. In its SEC filing, the company noted that revenue in the first three quarters of 2020 increased 28% to $ 192.8 million. It also posted a profit of $ 20.9 million in the same period, compared to losses of $ 33.9 million the year before. Like ThredUp, Poshmark has benefited from an increase in resale due to a pandemic.
Rent the track
Rent the Runway, a fashion rental company founded in 2008, filed its case in July. The company raised $ 357 million when it went public in October, for a valuation of around $ 1.5 billion. Rent the Runway’s public debut comes after the company canceled its unlimited subscription model in September and announced it would close units in New York, Washington, DC, Los Angeles, San Francisco and Chicago to focus on its digital operations.
Shares of ThredUp Inc. opened 30% above the listing price on its first day of listing on the Nasdaq Global Select Market in March. The Oakland, Calif.-Based resale platform sold 12 million shares and raised $ 168 million for a valuation of around $ 1.3 billion. In 2020, ThredUp’s revenue grew 14% year-over-year to $ 186 million. At the end of 2020, it had 1.2 million active buyers. ThredUp is currently fueling the resale of major players such as Walmart, Madewell, and Vera Bradley through its resale-as-a-service technology.
What else we are looking at:
Saks, the e-commerce arm of Saks Fifth Avenue, has reportedly started preparations to file for an IPO. The luxury retailer’s e-commerce business is reportedly targeting a valuation of around $ 6 billion in the first half of 2022.