Investors started this week in the stock market of running shoe company On, amid fresh signs of moderation in consumer spending.
why it matters: apparel sales Access As the economy reopened earlier this year – and buying athletic apparel, especially sneakers, is a pandemic habit that doesn’t seem to end.
- Switzerland-based shares resume trading close to 50% Above the IPO price, which puts the company’s value at a higher $6 billion.
Flashback: Brooks, Puma and Hoka were among them top performance According to the NPD group, running shoe brands during the early months of the pandemic last year.
What are they saying: There is a “strong demand” for athletic products and running shoes and sneakers as people are now getting out of their homes, says Brian Nagel, managing director of Oppenheimer.
- it is a continuation of running boom The trend which started with the onset of the pandemic, he added.
big picture: As consumers now have more disposable income to spend, they may be more willing to pay for products that are “even more fashion forward, sustainable, and performance-driven,” Nagel says.
- Specifically, it’s ranked among retail’s hottest running brands, Mitch Kumetz, senior analyst for footwear and apparel at Pivotal Research, tells Nerdshala.
Watch to see: Allbirds is set to start trading on the Nasdaq next.