Dive Brief:
- Birkenstock filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering, according to a company press release Tuesday. The number of ordinary shares to be sold and the price range for the proposed offering have not been determined.
- The company intends to list on the New York Stock Exchange using the ticker symbol BIRK. During its 2022 fiscal year, Birkenstock generated 1.24 billion euros (about $1.33 billion as of press time) in revenue and a net profit of 187.1 million euros, according to its filing.
- Birkenstock will be a controlled company following the completion of its IPO, with private equity firm L Catterton controlling a majority of the combined voting power of its outstanding ordinary shares.
Dive Insight:
Founded in Germany, Birkenstock plans to enter the public market while emphasizing its unique approach to comfortable footbeds.
“Birkenstock is more than a shoe. lt’s a way of thinking, a way of living,” CEO Oliver Reichert said in a letter to prospective shareholders. “We are serving a primal need of all human beings. We are a footbed company selling the experience of walking as intended by nature ... Today, we are crowning this development with an IPO - a logical step that began with the stepping back of the family from the operational business.”
L Catterton acquired a majority stake in Birkenstock in 2021 through affiliated entities, with the company joining the private equity firm’s portfolio of brands such as Ganni and Hanna Andersson.
Birkenstock’s direct-to-consumer penetration increased from 30% of revenues in fiscal 2020 to 38% in 2022, with the company investing significantly in its e-commerce platform to support DTC growth since 2016. Its e-commerce site is available in more than 30 countries and makes up 89% of its DTC channel.
The footwear brand operates a retail network of 45 stores as of June 30, 20 of which are located in Germany. Birkenstock has recently expanded that network globally though, with locations including New York City, Los Angeles and more.
The company believes its vertically integrated manufacturing structure is a key differentiator. Birkenstock assembled 95% of its overall products and 100% of its footbeds within five owned factories across Germany, with certain component manufacturing supplemented in Portugal. The brand’s latest factory in Pasewalk, Germany, will be operational in late 2023, and it plans to expand its recently acquired component manufacturing facility in Portugal over the next two years.
Looking forward, Birkenstock plans to support growth with initiatives such as expanding its product assortment and increasing brand penetration globally in countries such as France and Canada.
