German Footwear Brand Birkenstock Announces Plans for IPO in New York

Birkenstock has filed to go public through an initial public offering (IPO) in New York.

The German footwear brand did not specify in its Tuesday (Sept. 12) F-1 filing with the U.S. Securities and Exchange Commission (SEC) the number of shares or the IPO price.

The Financial Times (FT) reported Tuesday that Birkenstock aims to achieve a valuation of over $8 billion in its IPO. The report, which cited unnamed sources, also said the company aims to list during the week of Oct. 9.

In terms of financial performance, Birkenstock reported revenues of $644 million in the six months ended March 31, representing a 19% increase compared to the same period in the previous financial year, according to the report. However, the company’s net profit dropped by 45% to $40 million due to higher operating expenses.

Birkenstock has been focusing on selling a greater share of its footwear directly to consumers, which has driven up costs, the report said. Additionally, higher wages and a weaker U.S. dollar have also impacted the company’s profitability.

Despite these challenges, Birkenstock remains optimistic about its future prospects, emphasizing its youthful energy and creative versatility in its IPO prospectus, per the report.

Birkenstock’s filing for an IPO is seen as a positive sign for the U.S. market for listings, which has been experiencing a revival after a more than 18-month downturn, according to the report. The company’s decision to join the New York Stock Exchange follows successful high-profile deals and listings, indicating renewed confidence among dealmakers and IPO candidates.

The past 18 months witnessed a slowdown in IPO activity, but recent successful deals, such as U.K.-based chipmaker Arm and grocery app Instacart, have helped restore confidence among investors and companies seeking to go public, the report said. Birkenstock’s decision to enter the IPO market adds to the growing list of companies taking advantage of the improved market conditions.

Birkenstock’s IPO will be the second listing for one of L Catterton’s portfolio companies in a matter of months, per the report. L Catterton, a private equity firm backed by French luxury fashion house LVMH, acquired a majority stake in Birkenstock in 2021. The positive reception of L Catterton’s portfolio company, online beauty retailer Oddity Tech, during its listing on the Nasdaq exchange in July further boosted confidence in the IPO market.

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