The fashion industry will have a lot to say about the Barbie movie in the coming days. But first, let’s take a look at this week’s other big premiere. Oddity Tech, an Israeli company that owns beauty brands Il Makiage and SpoiledChild, is expected to plan a $1.7 billion IPO by mid-week.
Oddity will be the first major beauty IPO since October 2021, when haircare brand Olaplex and e-commerce platform Nykaa debuted their shares. Shortly thereafter, the market turned against startups (both Olaplex and Nykaa shares are well below their original price) as rising interest rates and inflation clouded the outlook. This year has seen a flurry of IPOs, including consumer brands like fast-casual restaurant chain Cava.
Oddity describes itself as a “consumer tech company building and scaling digital-first brands”. It wants to be seen as a tech company, not one whose life or death depends on how much consumers love their Il Makiage foundation (though they buy quite a bit – Oddity says it’s selling $325 million dollars is profitable in fiscal 2022). But beauty brands like Glossier and Honest, which have historically propagated this narrative, have notoriously had to shift gears. Oddity says its artificial intelligence can match clients with the perfect shade of Il Makiage foundation or SpoiledChild’s liquid collagen. In addition, an influencer platform has been created, stimulating legions of small designers to sell their beauty products.
Will investors buy her story? We’ll find out in a few days. Oddity could be the first in a string of fashion and beauty IPOs in the second half of 2023. Skims and Birkenstock are both reportedly testing the ground for IPOs. And in the background, Shein stands out, which would be one of the biggest IPOs of all time if it came to that. The market isn’t open to all, however: accessories retailer Claire’s told regulators earlier this month that it had abandoned plans to go public.
If Oddity, Skims, and Birkenstock hit their IPO targets, you can expect the floodgates to open. The list of direct-to-consumer brands and consumer tech companies that have been waiting for the right time to exit is a very long one.
What else to watch out for this week
Monday
Richemont reports results
Tuesday
US reports June Retail Sales
Wednesday
Oddity IPO (estimated)
UK and EU report inflation data for June
Thursday
Frasers Group and Crocs report results
Friday
“Barbie” has a big start in US cinemas
UK reports June retail sales
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