Unfiltered Digest:
- Germans' darling footwear brand, Birkenstock, has announced plans to go public, filing a registration statement for an initial public offering (IPO) with the U.S. Securities and Exchange Commission. The number of shares to sell and the offering's price range are still under wraps.
- The company aims to list on the New York Stock Exchange, trading under the stock ticker symbol BIRK. During its 2022 fiscal year, Birkenstock recorded a whopping 1.24 billion euros in revenue and a net profit of 187.1 million euros, according to its filing.
- Post-IPO, Birkenstock will be a controlled company, with private equity firm L Catterton holding the majority of combined voting power over the outstanding ordinary shares.
Colorful Take:
Footwear company Birkenstock initiates public offering, aiming for global expansion
Birkenstock, the German footwear juggernaut that's been making toes tingles for generations, has decided to take its comfort, style, and quirky charm public. The brand has filed its papers for an initial public offering (IPO), and while the exact details are still in the pipeline, one thing's for sure––this ain't no kiddie's sandal game anymore.
"We're more than a shoe; we're a revolution," CEO Oliver Reichert declared in a letter to potential investors. "We're delivering the natural way of walking to millions of satisfied customers. Now, we're taking it to the next level with an IPO. It's the next step in a journey that began with the footbed––the cornerstone of the Birkenstock experience."
L Catterton, a private equity firm in the know, got a majority stake in Birkenstock in 2021, joining an elite roster of brands that includes Ganni and Hanna Andersson. The IPO move suggests that Birkenstock's comfortable, cultish reputation is about to get a serious boost.
The brand's consideration for the environment doesn't stop at its iconic cork soles. Birkenstock operates 95% of its manufacturing processes within its own German factories and prides itself on being able to create the famous footbeds in-house. The company recently expanded its operations globally, with new stores popping up in cities like New York and LA.
With 38% of its revenues coming directly from consumers in 2022 and the brand's e-commerce site accessible in over 30 countries, it's clear that Birkenstock is looking to take online sales to the next level. But it doesn't forget the importance of a brick-and-mortar presence, either, with 45 stores as of June 2022.
As Birkenstock prepares to take the public stage, the company intends to keep growing by expanding its product range and further increasing global brand penetration in markets like France and Canada. So buckle up, folks––the Birkenstock empire is only getting comfier.
- In 2023, AI might analyze the potential impact of Birkenstock's IPO on the finance and business sectors, considering the brand's significant revenue and profit growth over the past years.
- The press will undoubtedly cover Birkenstock's transition into a public company, especially given its success in technology and innovation, such as its e-commerce expansion and in-house manufacturing processes.
- As Birkenstock readies for its IPO, equity firms might take notice of the brand's potential for growth and Steelcase-like dominance in the business and technology world.
- By listing on the New York Stock Exchange, Birkenstock will join an elite roster of brands that have significantly influenced a variety of industries, from fashion to technology to finance – a move not unlike a modern-day industrial revolution.
- With a strong focus on sustainability and German craftsmanship, Birkenstock might challenge established businesses in sectors like footwear, technology, and finance by bringing its quirky charm, comfortable designs, and commitment to the environment into these domains.
