IPO for shoemaker On a sign of growing demand for athleisure products

Investors rushed to buy shares this week of running shoes company On in its stock market debut, amid new signs that consumer spending remains resilient.

Why it matters: Apparel sales rebounded earlier this year as the economy reopened — and buying athletic apparel, especially sneakers, is one pandemic habit that’s not dying out.

• Shares of Switzerland-based On started trading close to 50% above the IPO price, which put the value of the company at more than $6 billion.

Flashback: Brooks, Puma and Hoka were among the top performing running shoe brands during the early months of the pandemic last year, according to the NPD Group.

What they’re saying: There’s been “strengthening demand” for athleisure products and running shoes and sneakers because people are now getting back outside their homes, says Brian Nagel, managing director at Oppenheimer.

• It's a continuation of the running boom trend that began with the start of the pandemic, he adds.

The big picture: As consumers now have the disposable income to spend more, they may be more willing to pay up for products that are “even more fashion forward, durable, and performance-driven,” says Nagel.

• On, specifically, has ranked among retail's hottest running brands, Mitch Kummetz, senior analyst of footwear and apparel at Pivotal Research, tells Axios. 

Watch to watch: Allbirds is set to start trading on the Nasdaq next.