Sandal maker Birkenstock files for IPO on Wall Street

From an “ugly” shoe to a true bohemian accessory, Birk has undergone a revolution in recent years. Preparing to list on the New York Stock Exchange? Perhaps, since the manufacturer of German sandals Birkenstock filed its lawsuit on Tuesday, according to a document published on the website of the US regulator SEC.

The prospectus did not specify a listing date for the securities of the company, which is controlled by investment firm L Catterton, which is linked to global luxury leader LVMH and its boss Bernard Arnault. (owner of Parisien-Aujourd’hui in France).

Shareholders are looking for a valuation of more than $7 billion for the company, which is headquartered in Linz am Rhein, in southwest Germany near Bonn, according to the Wall Street Journal.

Turnover quadrupled in eight years

The document filed on Tuesday is a preliminary application that does not mention the number of shares the group wants to offer investors. The report shows that in its most recent financial year, ending at the end of September 2022, Birkenstock had a turnover of 1.24 billion euros ($1.22 billion at the time) and a net profit of 187 million euros ($183 million).

In the six months from October 2022 to March 2023, revenue reached €644 million, an increase of 18%. In eight years, Birkenstock has more than quadrupled its turnover.

Founded in 1774 by shoemaker Johann Adam Birkenstock, the company began selling soles and then began producing sandals in 1963. German sandals were worn by members of the Western youth liberation movement in the 1960s and 1970s, who wore a more casual style of dress.

Aggressive Marketing Strategy

But the brand then faded into obsolescence before being revived in recent years with an aggressive marketing strategy, illustrated recently by the appearance of Barbie’s famous sandals on her feet in the hit doll movie.

Reinvented as a fashion accessory, Birkenstock has even carved out its place in the world of luxury, launching collaborations with Dior, Valentino, Céline and Givenchy. The strategy was developed in 2021 by acquiring a majority stake in US-based L Catterton, which values ​​Birkenstock at four billion euros, analysts said.

The company employs about 6,200 people, according to a document released Tuesday. Birkenstock claims to make its shoes in Germany. One of the most important sites is in Görlitz in the east of the country, close to the Polish border, and a new plant in northern Germany is due to open by the end of the year.