Birkenstock, the resurgent German sandal maker once beloved by healthcare workers, is set to be valued at up to €9.2bn ($9.7bn) when it floats on the stock market this month.
Around 32.2 million ordinary shares will be put on the New York Stock Exchange in an initial public offering. On Monday, the company priced its shares at $44 to $49 each, which could see the company raise up to $1.58bn.
The German brand has seen somewhat of a resurgence over the past two years, and are now a favourite among celebrities and influencers, with fans including Kendall Jenner, Gigi Hadid and Sienna Miller. One of its brands was featured in the Barbie movie, with Margot Robbie seen donning a pair of pink Birkenstock. Last year they were one of the UK’s most purchased fashion items.
The stock flotation – due to take place on 11 October, according to industry reports – marks a milestone for the company founded in 1774 to make orthopaedic shoes. By 1897, Konrad Birkenstock had made the first flexible sole fitting the contours of the feet.
The company remained in the hands of the founding family until 2021, when it sold a majority stake to private equity group L Catterton and the family holding fund of French luxury magnate Bernard Arnault.
But the sandals, with their broad straps and cork and latex soles, had begun to gain international acclaim well before that.
Brought to the United States in the 1960s, the sandals were quickly adopted by hippies who took to their no-frills comfort and claimed their utilitarian look as an anti-fashion badge.
But it was when supermodel Kate Moss donned them for a fashion shoot in the 1990s that the sandals were propelled into standard footwear for A-listers.
Brands from Paco Rabanne and Valentino to Celine have customised their versions of Birkenstocks, even putting them on runways.
Actress Frances McDormand padded on stage at the Oscars in February 2019 in a yellow pair – vindicating the idea that footwear does not need to be painful to be glamourous.
Susannah Streeter, head of money and markets at investment firm Hargreaves Lansdown, said: “Fashionistas can be fickle and while Birkenstock may be basking in rays of popularity right now, it’s going to have to run fast to keep up in the stylish stakes. Counterfeit goods could also cause the company to lose its footing in the fast-moving fashion environment.”
In the nine months ending 30 June this year, Birkenstock recorded revenues of €1.11bn ($1.17bn), up 21% from the same period a year earlier. Net profit for the nine months was €129.1m, down 20% from €103.3m euros a year ago.
While other companies have shifted production to places where labour is generally cheaper, such as Asia, Birkenstock says 95% of its products are assembled in Germany.
Headquartered in the western city of Linz am Rhein, the company has several manufacturing sites in the country, and around 6,200 employees worldwide.
Birkenstock, which will list its shares on the New York Stock Exchange under the ticker symbol “BIRK”, also revealed the nomination of Alexandre Arnault, the son of billionaire LVMH chairman Bernard Arnault, to its board.
With Agence France-Presse and Reuters
