By German sandal maker and fashion icon Birkenstock has officially filed for an initial public offering (IPO) on the New York Stock Exchange. While specific details regarding the number of shares and price range have not yet been disclosed, the company plans to trade under the ticker symbol BIRK.
Earlier reports in July had hinted at private-equity firm L Catterton, supported by LVMH MC, considering various options for Birkenstock, which included an IPO valuation exceeding $6 billion. Notably, reputable underwriters, Goldman Sachs and JP Morgan, will be managing the deal.
Birkenstock’s filing emphasizes their consistent revenue growth, strong operating margins, and exceptional sell-through rates. In fiscal year 2022, the company generated a revenue of €1.24 billion ($1.33 billion), achieving a gross profit margin of 60% and an adjusted gross profit margin of 62%. This impressive performance contributed to a net profit of €187.1 million and the sale of approximately 30 million pairs of shoes.
Chief Executive Oliver Reichert expressed that Birkenstock represents more than just footwear; it embodies a way of thinking and living. As the company prepares for its IPO, investors eagerly anticipate this unique opportunity to be part of Birkenstock’s success story.
A New Chapter for Birkenstock
After centuries of existence, the renowned company, Birkenstock, is making a momentous move by going public. This strategic decision is a natural progression following the family’s withdrawal from day-to-day operations.
Partnering with L Catterton accelerated Birkenstock’s ascent to the next level. Now, with plans to go public, the company aims to welcome a broader range of investors to join their journey. This transition marks the beginning of an exciting new chapter for Birkenstock.
Birkenstock’s recent surge in popularity can be attributed, in part, to its appearances in pop culture. In the movie “Barbie,” our classic and perhaps even unconventional pink sandals gained attention when Barbie herself chose them. Furthermore, keen-eyed fashionistas spotted the brand’s $155 clogs on the main character in the hit Hulu series “The Bear,” who happens to be a chef. Rumor has it that Target Corp. is even contemplating the release of a Birkenstock clog imitator.
As some claim that “Birkenstock is having a moment,” co-CEO Reichert responds confidently, stating that Birkenstock’s moment has been ongoing for an impressive 250 years, and it shows no signs of waning. Consumers’ preference for casual attire, combined with a growing emphasis on health-conscious products and an increasing appreciation for craftsmanship and purpose-driven brands, ensures a promising future for Birkenstock.
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