Birkenstock IPO: Everything you need to know about Birkenstock

Rebecca Cattlin
By :  ,  Senior Financial Writer

Global lifestyle and footwear brand Birkenstock is eyeing a US listing as soon as September 2023. Learn everything we know about Birkenstock's $8 billion IPO.

What do we know about the Birkenstock IPO?

Birkenstock, the German sandal maker, is considering holding an initial public offering (IPO) as early as September 2023. But according to Bloomberg, deliberations are ongoing and no final decisions on the size or timing of an IPO have been made. But estimates of the Birkenstock IPO have valued the firm at more than $8 billion.

Goldman Sachs and JPMorgan are advising the company’s current owner – private equity firm L Catterton – on the deal.

Birkenstock's upcoming IPO would come just months after another L Catterton-backed brand’s IPO, Oddity Tech. The online beauty products retailer raised more than $400 million when it was listed on the Nasdaq stock exchange.

How to trade the Birkenstock IPO

Once Birkenstock has been listed, you’ll be able to trade its shares in the same way as any other stock on the market. In the meantime, you can trade thousands of other shares with City Index in these easy steps:

  1. Open a City Index account, or log in if you’re already a customer
  2. Search for the company you want to trade in our award-winning trading platforms
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade

Alternatively, you can practise trading shares in a risk-free demo account.

What does Birkenstock do?

Birkenstock is a famous footwear manufacturer based in Germany. According to its website, it's one of the top five global footwear brands. The company’s products, which include its famous contoured cork-soled sandal, are sold in more than 90 countries worldwide.

Birkenstock was originally positioned as an orthopaedic brand – earning them the nickname ‘fashion’s original ugly shoe’. So, Birkenstock’s current reputation as ‘the world’s most popular shoe’ – according to search platform Lyst – seems like a large rebrand. But over the years the company has held collaborations with luxury names such as Dior, Manolo Blahnik and Valentino, ultimately landing Birkenstock a place in the luxury shoe category.

Unlike other global brands, Birkenstock doesn’t outsource its manufacturing. The company still owns each step of its production line. This positions the firm well to respond to changes in demand and protect its heritage as a German company. 

Birkenstock employs around 5,500 employees globally. Most of its operations are still in Germany, with production facilities in Rhineland-Palatinate, North Rhine-Westphalia, Bavaria, Hesse and Saxony. Birkenstock has been investing heavily in building out its production sites in Germany, including a new €120 million factory in Pasewalk, a town north of Berlin.

Birkenstock has sales operations in the US, Brazil, China, Singapore, Hong Kong, Japan, Denmark, Poland, Slovakia, Spain, France, Norway, Dubai, India and the United Kingdom.

How much is Birkenstock worth?

Birkenstock’s value is estimated to be around $8 billion after it lists, with some estimates going so high as a $10 billion market cap. The company was last valued in 2021 when L Catterton bought a majority stake for €4 billion.

How does Birkenstock make money?

Birkenstock makes money through the sale of the various iterations of its cork-based sandals. In 2019, it was estimated the brand sold over 23.8 million pairs of shoes and they’ve only grown in popularity over recent years.

Notably, the business saw an uplift in sales in the summer of 2023 following the release of the Barbie movie, in which actress Margot Robbie was seen wearing a pair of Birkenstocks in one scene.

Is Birkenstock profitable?

Yes, Birkenstock saw adjusted earnings of €394 million last year after its revenue increased 29% to roughly €1.2 billion ($1.3 billion). That’s according to a lender presentation seen by Bloomberg News.

Who owns Birkenstock?

Private equity firm L Catterton predominantly owns Birkenstock but relatives of the footwear brand’s founder – brothers Alex and Christian Birkenstock – have kept a minority stake in the business.

French luxury fashion house LVMH backs L Catterton itself. The equity firm was formed in 2016 when LVMH and Bernard Arnault’s family holding company merged with the US private equity firm Catterton. It’s estimated that L Catterton manages over $30 billion in assets, including consumer brands like Scandinavian fashion company Ganni and fitness company ClassPass.

It’s rumoured that L Catterton is also considering a public listing.

Who is Birkenstock’s CEO?

Oliver Reichert is currently CEO of the Birkenstock Group. He took on the position at the end of 2012, alongside Markus Bensberg. But since May 2021, he has been the sole CEO. 

Related tags: IPO Stocks US stocks

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