German footwear company Birkenstock filed for an initial public offering (IPO) on Tuesday, September 12, 2023.
While specific details regarding the share price and terms of the share sale remain undisclosed for the time being, the IPO could fetch the company a valuation exceeding $8 billion.
The company intends to list its shares on the New York Stock Exchange using the symbol BIRK. Goldman Sachs Group Inc., JPMorgan Chase & Co., and Morgan Stanley are serving as its lead underwriters.
The company’s decision to file for an IPO follows a period of impressive revenue growth. In 2022, the clog maker disclosed approximately $1.3 billion in revenue, marking an 18% increase in revenue from 2018 to 2022.
Just two years ago, private equity firm L Catterton, which LVMH backs, acquired a majority stake in the brand in a deal that valued the company at $4.3 billion.
With a rich heritage spanning nearly 250 years, Birkenstock has seamlessly transformed its iconic sandals into sought-after fashion statements. The brand has collaborated with prestigious luxury names like Dior, Manolo Blahnik, and Valentino. Birkenstock’s distinctive style has also served as a muse, inspiring upscale interpretations by other renowned labels like Celine and Givenchy.
Birkenstock’s presence in the United States can be traced back to 1966, when Margot Fraser played a crucial role in introducing the brand to the American market. Fraser first encountered these sandals during a vacation in Germany and later started importing them for sale in the United States.
Their appeal experienced a substantial surge during the 1990s and 2000s as celebrities like Kate Moss and Heidi Klum were frequently spotted wearing them, contributing to their elevated status. More recently, Birkenstock’s clogs have rapidly gained favor, especially among individuals with a penchant for bohemian or fashion-forward styles.
In response to growing demand, the company has undertaken significant investments to enhance its manufacturing capacity within Germany. Notably, the company allocated €120 million (equivalent to $131 million) to establish a new factory in Pasewalk, located north of Berlin.
Photo credit: Birkenstock
