European IPO Market
Birkenstock’s decision to list in the US rather than Europe reflects the current state of the IPO market in the region. European IPOs have been lackluster this year, with volumes significantly lower than the record levels seen in 2021. In contrast, U.S. listings have seen a surge in activity, with the amount raised nearly doubling year-over-year. This disparity has led companies like Birkenstock to seek opportunities outside of Europe.
The Financial Details
While the financial details of Birkenstock’s IPO were not disclosed in the filing with the U.S. Securities and Exchange Commission, the company did reveal some key figures. According to the filing, Birkenstock’s net sales for the six months ended March 31 rose an impressive 19 % to 644.17 million euros. However, profit for the same period fell by 45.3 % to 40.21 million euros. These figures illustrate both the brand’s strong market presence and the challenges it faces in maintaining profitability.
The IPO Landscape
Birkenstock’s decision to go public in the U.S. follows a string of recent IPO filings by high-profile companies. British chipmaker Arm, data automation provider Klaviyo and grocery delivery app Instacart are among the companies taking advantage of the recovering U.S. stock markets. After a slow start to the year due to an uncertain economic outlook, the IPO scene is heating up as companies look to tap into growing investor appetite.
Boost from Pop Culture
Birkenstock’s decision to go public also comes on the heels of a marketing coup with the blockbuster movie “Barbie. The movie prominently featured actress Margot Robbie wearing a pair of pink Birkenstock sandals, leading to increased popularity and demand for the brand’s comfortable and fashionable footwear among fashion enthusiasts. This pop culture boost further solidified Birkenstock’s reputation as an industry trendsetter.
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The BIRK Ticker
Birkenstock plans to list its shares on the New York Stock Exchange under the ticker symbol “BIRK”. The choice of ticker symbol reflects the brand’s commitment to its heritage and its intention to establish a strong presence in the U.S. market. The BIRK ticker symbol will not only serve as a recognizable symbol for investors, but will also serve as a reminder of the brand’s long history and reputation for quality craftsmanship.
Majority Ownership
Entities affiliated with L Catterton, a private equity firm backed by luxury goods conglomerate LVMH, will retain a majority of the combined voting power of Birkenstock’s shares after the IPO. This agreement underlines the strategic partnership between L Catterton and Birkenstock and underlines the brand’s commitment to maintaining its independence and unique identity in the luxury footwear market.
