This iconic footwear company, whose history dates back to the 18th century, filed on September 12, 2023, the registration statement on entering the stock exchange. The announcement comes more than two years after the Birkenstock family sold its majority stake to LVMH-linked private equity firm L Catterton for $4.85 billion. Since then, the company's value has risen significantly, and it is expected to have an initial public offering on the New York Stock Exchange at a valuation of $8 billion (ticker: BIRK).[1]
Already this week?
The company believes it will be able to launch its IPO as early as the first week of October as originally planned, despite Washington approaching its 4th partial government shutdown in a decade. This may be due to the fact that Speaker of the House of Representatives Kevin McCarthy rejected the temporary funding bill that advanced in the Senate last Wednesday.
Under the new management, the brand is doing well
Annual sales have increased from approximately $781 million in 2020 to more than $1.3 billion in 2022, an annual growth rate of 31 percent. Net income rose 19 percent to $692.9 million in the six months to March 31, according to information released for the IPO filing. However, the profit fell by 45.3 percent compared to the previous half-year.
Positive expectations associated with the debut
Despite the company's strong position in the retail market, footwear public offerings often have mixed results from their IPOs. The successes of Crocs, Skechers and Deckers are well known Outdoor, but also the "stock market battles" of Allbirds or On Holding. However, comparable companies are trading well this year, bringing positive expectations for Birkenstock's stock market debut.[2]
Arm is also planning an IPO
Birkenstock is the 2nd largest company from Europe that plans to enter the US stock market. The British chip manufacturer Arm is also planning an IPO. In the US this year, according to data from Dealogic, primary offers reached double the amount of 2022, while in Europe they remain well below the record achieved in 2021.
Olivia Lacenová, chief analyst at Wonderinterest Trading Ltd.
[1,2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
