The Business of Fashion will have plenty to say about the Barbie movie in the coming days. But for now, let’s take a look at this week’s other big premiere. Oddity Tech, an Israeli company that owns the beauty brands Il Makiage and SpoiledChild, is planning an initial public offering, likely midweek, seeking a $1.7 billion valuation.
Oddity will be the first major beauty IPO since October 2021, when haircare brand Olaplex and e-commerce platform Nykaa shares debuted. The market turned against start-ups soon after that (shares of both Olaplex and Nykaa are down sharply from their debut price), as rising interest rates and inflation clouded the outlook. This year there’s been a steady trickle of IPOs, including consumer brands like the fast-casual restaurant chain Cava.
Oddity describes itself as a “consumer tech company that builds and scales digital-first brands.” It wants to be seen as a tech play, rather than a company that lives or dies by how much consumers like their Il Makiage foundation (though they do buy quite a bit – Oddity says it’s profitable, with fiscal 2022 sales of $325 million). But beauty brands that have spun this narrative in the past, like Glossier and Honest, have famously had to shift gears. Oddity says its artificial intelligence can match customers with the perfect shade of Il Makiage foundation or SpoiledChild’s liquid collagen. It also created an influencer platform that incentivises legions of small-scale creators to hawk its beauty products.
Will investors buy their story? We’ll find out in a few days. Oddity could be the first in a series of fashion and beauty IPOs in the second half of 2023. Skims and Birkenstock are both reportedly testing the waters for public listings. And looming large in the background is Shein, which would be one of the biggest IPOs ever were it to pull the trigger. The market isn’t open to all, however: the accessories retailer Claire’s told regulators earlier this month it was scratching plans to go public.
If Oddity, Skims and Birkenstock hit their IPO targets, expect the floodgates to open. The list of direct-to-consumer brands and consumer tech ventures that have been waiting for the right time to exit is very long.
What Else to Watch for This Week
Monday
Richemont reports results
Tuesday
US reports retail sales data for June
Wednesday
Oddity IPO (estimated)
UK, EU report June inflation data
Thursday
Frasers Group, Crocs report results
Friday
“Barbie” enters wide release in US theaters
UK reports June retail sales
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