Birkenstock, the renowned footwear brand with a 250-year legacy, has officially filed for an IPO on the New York Stock Exchange, according to its Securities and Exchange Commission filing on September 12.
Here are the key highlights:
- Profitable History: Birkenstock Holding, founded in 1774, has demonstrated profitability. In the first six months of 2023, the company earned €40.2 million ($43.3 million), with a 19% increase in revenue to €644.2 million. Gross-profit margin improved from 56% to 60%.
- Revenue Breakdown: For fiscal year 2022 (ending September 30), revenue reached €1.24 billion ($1.33 billion), with 54% originating from the Americas, 36% from Europe, and 10% from Asia-Pacific-Mideast-Africa.
- IPO Details: While the filing did not specify the number of shares to be offered or their potential price, Bloomberg reports suggest Birkenstock’s valuation could exceed $8 billion. The company intends to list its shares under the symbol BIRK.
- Continued Control: Private-equity firm L Catterton, currently in control of Birkenstock, will maintain its ownership post-IPO.
- Workforce: Birkenstock employs 4,800 full-time and 900 contingent staff. CEO Oliver Reichert, the first non-family member to lead the company, assumed the role in 2013.
In its filing, Birkenstock highlights several factors dear to its customers:
- Loyal Customer Base: On average, Birkenstock enthusiasts own 3.6 pairs, showcasing strong brand loyalty.
- Foot Health: The company touts its footbed as an excellent alternative to walking barefoot, promoting proper foot health by distributing weight evenly and reducing pressure points.
- Quality and Sustainability: Birkenstock emphasizes its vertically integrated manufacturing base, producing most products in Germany or elsewhere in the EU. Responsible sourcing of materials mainly from Europe underscores its commitment to quality and sustainability.
- Generational Appeal: The brand has adapted to changing cultural trends over the decades, from the counterculture movement of the 1960s and 1970s to contemporary consumers seeking healthy, high-quality products.
While the company looks to a promising future, it acknowledges potential risks, including intense market competition, shifting consumer preferences, and counterfeit products that may harm its brand and market share.
Additionally, success hinges on executing its direct-to-consumer growth strategy and effectively managing e-commerce challenges.
Birkenstock’s journey from centuries-old sandal producer to publicly traded company marks a significant milestone in its enduring legacy.
(Source: The Street)
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