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    Birkenstock's Potential $8 Billion IPO Expected in September

    Written By

    Pete Michael

    Date

    2023.08.10

    Known worldwide for their comfortable sandals and a history spanning almost 250 years, the German footwear behemoth that is Birkenstock is expected to annouce their first-ever IPO as early as next month — and it could be worth up to $8 Billion.

    The Foundations of the IPO

    Sources have highlighted that Birkenstock could potentially step into the stock market as early as next month. This unveiling comes with a staggering valuation of over $8 billion, a noticeable leap from the earlier projected figure of $6 billion in early July.

    While an IPO usually indicates a company's expectation of high demand for its stocks, Birkenstock's confidence is not misplaced. Their financial track record speaks volumes. The company recorded a substantial 29% revenue growth last year, raising their total earnings to an impressive 1.2 billion euros. One intriguing catalyst for this boom in sales has been the iconic sandal's cameo in the popular Barbie movie.

    Market Challenges and Historical Perspectives

    However, like all dynamic entities, the stock market has its crests and troughs. With the current economic environment marked by soaring inflation and high-interest rates, retail has been at the receiving end. Historical data points towards a slightly rocky road for footwear companies; notable brands like Allbirds, On, and Dr. Martens, all of whom went public in 2021, have since witnessed stock value decreases of 94%, 7.6%, and 67.35%, respectively.

    Yet, Birkenstock stands in a unique position. Their brand carries a weight of recognition and trust, and their ascendancy in the mainstream markets over recent years might be their wildcard.

    Additional Layers to the Narrative

    Diving deeper into this unfolding saga, L Catterton, an American private equity firm supported by LVMH, has been a significant player. Since 2021, they've held the reins with a majority stake in Birkenstock. Gossip mills had then estimated the acquisition to be around $6 billion USD.

    This IPO, if materialized, would signify a landmark moment for Birkenstock. The curtain would be lifted for the first time, revealing the company's financial specifics to the world. Considering Birkenstock has largely remained a family-owned private entity, this shift is bound to cast light on the more enigmatic facets of its operations.

    As the world waits with bated breath for September's potential unveiling, one thing is crystal clear: Whether you're a financial analyst or just a fan of their iconic sandals, Birkenstock's next step is bound to leave an indelible footprint in the sands of the business world.

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