They’ve become the toast of the fashion world in recent years – and now Birkenstock is set to be valued at more than $9.2 billion in its eagerly awaited IPO in New York. The German shoe manufacturer, known for its chunky, cork-soled sandals, has registered to trade on the New York Stock Exchange under the symbol ‘BIRK’. Birkenstocks have experienced a surge in popularity and sales, with UK revenues increasing by 48.8% last year. Demand has been further driven after the shoes featured in the Barbie movie starring Margot Robbie.
Founded in eastern Germany in 1774, Birkenstock has a long history of producing orthopaedic sandals with a gently moulded sole that promotes a healthy stride and posture. In 2021, the brand went into partnership with L Catterton, a private equity group part-owned by Bernard Arnault, head of luxury fashion giant LVMH.
The rise of Birkenstocks can be attributed to the shift in fashion trends during the COVID-19 pandemic. As people swapped out their painful heels for more comfortable footwear, Birkenstocks became an irresistible choice. Sales of high heels dropped by 71% in 2020, while Birkenstock revenues soared. The sandals are now a Hollywood staple, favored by celebrities such as Gwyneth Paltrow, Reese Witherspoon, and Kendall Jenner.
Birkenstocks are known for their simplicity and versatility. They can be paired with summery dresses, jeans, and jumpers, making them suitable for any age and desired look. The brand offers a vast array of styles and colors, ensuring there is a shoe to suit every need and taste.
Despite their popularity, Birkenstocks have remained true to their roots in offering orthopaedic support. They are designed to be comfortable and durable, making them a go-to choice for everyday wear even outside of the pandemic. The brand has also collaborated with high-profile designers and brands such as Dior, Manolo Blahnik, and Rick Owens.
This IPO is expected to further solidify Birkenstock’s success, with the company showing strength against a difficult demand environment for luxury goods. The proceeds from the offering will be used to pay down debt. Birkenstock’s IPO is underwritten by Goldman Sachs, J.P. Morgan, and Morgan Stanley.
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