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IPO a Go-Go: Week Ahead

The fashion sector has been experiencing a banner year when it comes to initial public offerings and that momentum doesn’t appear to be abating.

Companies that have successfully navigated the IPO waters since the start of 2021 include  PoshmarkMytheresa.com, Dr. Martens, and ThredUp. Also launching their IPOs this year are autonomous trucking startup TuSimple and medical scrubs maker Figs.

Upcoming new filings are expected to indicate the strength of the fall IPO market, William K. Smith, CEO and co-founder of IPO tracking firm Renaissance Capital LLC, said.

“The Covid-19 delta variant has thrown a wrench in the U.S. recovery, but based on the past year, the IPO market is largely immune as long as the stock market holds up. Rising cases could spell trouble for some IPO hopefuls, including restaurants like PF Changs or apparel renter Rent the Runway, while helping others like delivery platform goPuff, fire pit seller Solo Stove, and social media platform Reddit,” Smith said.

Joining the IPO brigade despite potential uncertainty are eyewear brand Warby Parker, DTC fashion platform A.k.a Brands, and the Roger Federer-backed running brand On Running.

Warby Parker on Tuesday said it lost $7.3 million for the six months ended June 30, according to a regulatory filing with the Securities and Exchange Commission. The company, which indicated at the start of the year that it had filed confidentially to go public, also said in the SEC filing that over the past three years, it has either lost money or broken even. It has an accumulated debt of $356.3 million.

A.k.a. Brands also filed on Tuesday for a shot at the public markets. Founded in 2018 by investment firm Summit Partners, the direct-to-consumer fashion platform has a network of 271 third-party suppliers across 14 countries. The company most recently acquired premium streetwear brand Culture Kings. The SEC filing indicated that net income rose 79.7 percent to $4 million for the first half of 2021.

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On Running publicly filed its registrations statement a day earlier. The SEC filing said it posted net income of 315.5 million Swiss francs ($344 million) for the first six months of 2021. The profit represents an improvement over the year-ago loss of 33.1 million Swiss francs ($36.2 million).

Warby Parker, A.k.a. Brands and On Running aren’t the only ones chomping at the bit to get out of the IPO gate.

Also in line is brand management firm Authentic Brands Group (ABG), which in July took steps to go public. It filed paperwork with the SEC for a $100 million IPO, although that figure is often used as a placeholder. ABG said in its SEC filing that its portfolio of brands—which include Juicy Couture, Marilyn Monroe, Sports Illustrated, Shaquille O’Neal, as well as non-controlling interest in Forever 21, Aéropostale, JCPenny, Brooks Brothers and Lucky Brands—drives about $10 billion in annual worldwide retail sales.

Other fashion firms said to be targeting the IPO market include footwear and apparel brand Allbirds, athleisure brand Fabletics, and Rent the Runway.