Pharrell-backed Tokyo streetwear label seeks growth overseas after IPO

By midmorning, Human Made Inc.’s Harajuku flagship is humming with a quiet churn of tourists speaking Mandarin, English and Korean over an upbeat ‘80s pop soundtrack. Inside, white walls and exposed pipes frame racks of duck-print sweatshirts above storage crates stamped with Human Made’s retro graphics. Staff in sweatshirts and Converse sneakers keep the flow brisk, keeping with the rhythm of a brand whose shares are about to start trading after a blockbuster Tokyo debut.

The man behind it all once said he “couldn’t do business.” Now, Tomoaki “Nigo” Nagao, who made camouflage hoodies a global status symbol, is at the helm of a streetwear IPO so hot it’s 60 times oversubscribed, according to people familiar with the deal, and a valuation that places him in fashion’s new moneyed elite.

Human Made began trading on the Tokyo Stock Exchange on Thursday, after pricing last week in a debut that valued it at $460 million. The listing marks a rare moment when streetwear, once a subcultural rebellion against luxury, has matured into one of its most valuable commodities. Nigo’s stake amounted to nearly $285 million, marking his ascent from underground fashion icon to publicly listed mogul. He has already cashed in about $56 million worth of stock. 

”This is a symbolic moment when a creative business rooted in Japanese street culture is being recognized as a valuable entity in the capital market,” said Kaori Nakano, visiting professor at Aoyama Gakuin University and a fashion historian. “I expect this to boost expectations of more investments into Japanese brands.”

Institutional investors sought more than 35 times the number of shares available to them, while demand from Japanese retail buyers was about 80 times, according to the people who declined to be named because the details aren’t public. At its IPO price, the stock trades at a valuation multiple far higher than Japan’s listed fashion peers. Human Made’s latest earnings show expansion, projecting about 20% growth in both revenue and profit for the current fiscal year.

“Its high multiple won’t be justified unless revenue and profit expansion look realistic,” said Ikuo Mitsui, a fund manager at Aizawa Securities Co. “But if the market comes to see Human Made as a growth stock, it wouldn’t be surprising for it to trade at around 50 times earnings going forward.”

The stock debut vaults Nigo into a new class of fashion wealth that’s distinct from old guard billionaires like Ralph Lauren, Miuccia Prada and Donatella Versace, who have dominated fashion for decades.

“In recent years, younger consumers have started to find that old idea of luxury offputting,” said Nakano. “They want something that feels fairer, where owning a product connects you to a community, not a hierarchy.”

Appetite for the listing has been intense. Among the biggest beneficiaries is Pharrell Williams — musician, producer and longtime collaborator who now serves as Louis Vuitton’s menswear creative director — with a 25.7% stake worth about $117 million. He sold about $33 million of that upon listing.  Institutional investors included Sumitomo Mitsui DS Asset Management, MY.Alpha Management HK Advisors Ltd. and Asset Management One Co..

“What investors liked most is its growth,” said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management who bid for shares in the IPO but didn’t receive any due to outsize demand. “It’s an outstanding pace for a company of this size.”

Human Made’s revenue and profit have risen more than fivefold since 2020, but sustaining that momentum will be a challenge, he added. “The company needs to broaden its offerings to maintain 20% revenue growth,” Ikeda said of the brand that has partnered with Nike Inc., Levi Strauss & Co. and Pokémon. “Expanding product lineups and collaborating with more global brands could be one solution. Investors are now watching to see whether Human Made can strike new tie-ups.”

Behind the business stands a seasoned executive team: CEO Rei Matsunuma, who spent 16 years at Fast Retailing’s Uniqlo, and Rehito Hatoyama, a former executive at Sanrio Co., the $9 billion company behind Hello Kitty, where he led the brand’s global expansion strategy.

Born in December 1970 in Maebashi, Japan, Nigo grew up in a modest household: his mother a nurse, his father a metalworker. His fascination with Western style was sparked by the men’s magazine Popeye, which introduced postwar Japanese youth to the Ivy League look of 1950s America. That curiosity led him to Bunka Fashion College, where he studied fashion editing, and where his distinct mix of design, branding and storytelling began to take shape.

For a generation that came of age in the 1990s, Nigo was already a bit of a legend. His brand A Bathing Ape (BAPE) defined Tokyo’s Harajuku scene, blending hip-hop, skate and Japanese pop-culture influences long before “streetwear” became a global currency. His clothes appeared on stars like The Notorious B.I.G., Pharrell and Kanye West, who helped transform the label from a local secret into an international symbol of exclusivity.

In 1993, the same year that Japanese-French designer Kenzo Takada moved to LVMH with his eponymous brand, bringing Japanese prints to the world, Nigo launched A Bathing Ape — fusing Tokyo youth culture with a global sensibility. Nearly two decades later in 2011, the fashion designer walked away from the loss-making label that had made him famous, selling it to a Hong Kong conglomerate.

But even after BAPE’s fall, Nigo remained an enduring influence. In 2003, he co-founded luxury streetwear label Billionaire Boys Club and Ice Cream with Pharrell. In 2021, he was appointed artistic director of LVMH’s Maison Kenzo — the first Japanese person in the role since Takada himself. Virgil Abloh, the late American designer, once called him “the Yves Saint Laurent or Balenciaga of streetwear.”

Founded in 2010, Human Made reflects the same mix of nostalgia, craftsmanship and pop-culture savvy that defined Nigo’s earlier work — but with a more mature approach. While BAPE captured the chaotic energy of 1990s Tokyo street culture, Human Made channels a quieter reverence for American heritage style, blending vintage workwear with preppy aesthetics.

With Human Made’s blockbuster IPO, the industry is watching whether Nigo’s next move could be to reclaim the brand that made him famous. In 2021, BAPE’s parent company, I.T Group, was taken private in a deal led by CVC Capital Partners leaving open the possibility that the designer who once walked away from his creation may one day buy it back.

Human Made, which sells through aggregator stores in China, South Korea and Hong Kong, is now pushing to expand overseas. In China, the company has built a following among younger consumers drawn to its retro designs and ties to global pop culture. But Japan’s fashion brands have historically struggled to scale in its fast-moving market, where trends shift quickly and local labels dominate e-commerce platforms. Japanese brands like Beams and United Arrows have name recognition but remain niche.

In its IPO prospectus, Human Made describes China as its “main battlefield,” prioritizing staffing and investment there and calling it “the biggest untapped market.” It also plans to expand in the US to balance its exposure to China, and grow across Southeast Asia and Europe through partnerships and placements in high-end department stores. This happens to come at a time of political and economic strains between China and Japan, which could add uncertainty to cross-border retail growth.

The IPO is just one piece of a broader empire. Beyond fashion, Nigo has become a prolific investor and collector. He serves as a creative advisor and investor in NOT A HOTEL, a Japanese hospitality startup that has drawn attention for turning luxury vacation homes into shareable assets. The company has more than 1,000 property owners. Among its flagship properties is the NIGO House, a concrete retreat built into a cliff overlooking Tokyo Bay with panoramic views of Mount Fuji.

In his 2014 Sotheby’s auction “NIGO Only Lives Twice,” he sold 250 lots of art, toys and furniture, including KAWS sculptures and bespoke Louis Vuitton blankets, fetching $4.5 million, about twice the presale estimate. A decade later, that ability to turn cultural influence into financial value is being tested again with Human Made’s market debut.

“Human Made embodies the energy and freedom of Tokyo’s backstreets, the blend of craftsmanship and playfulness, and a kind of Otaku culture layered in there too,” said Nakano, referring to a detail-obsessed pop-culture fandom.

”It’s less about a street fashion brand going public, and more about this market value being attached to Japanese-born culture,” she said. “It’s a groundbreaking event.”