Birkenstock, the renowned German sandal maker backed by L Catterton, has filed for an initial public offering (IPO), as confirmed by a registration statement filed with the Securities and Exchange Commission on Wednesday. This move comes following a July 6 report that hinted at Birkenstock's preparations to enter Wall Street.
The company's CEO, Oliver Reichert, in his letter to potential shareholders, emphasized that Birkenstock is more than just a shoe brand. He recounted his initial impressions when he joined the company back in 2009, describing Birkenstock as a "sleeping giant" with a rich heritage dating back to 1774. Reichert highlighted the brand's unwavering commitment to craftsmanship and quality, its vast product archive, and its steadily growing global following.
For the first time ever, the filing revealed the financial health of Birkenstock. The company reported net earnings of 187 million euros ( 1 euro = $1.0732) and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 434.6 million euros for the year ended September 30. Sales were reported at 1.2 billion euros. In the first half of this year alone, adjusted EBITDA and sales amounted to 224.4 million euros and 644.2 million euros respectively.
L Catterton, the largest consumer-focused private equity firm globally, acquired a majority stake in Birkenstock in 2021. The valuation at that time was rumored to be around 4 billion euros.
The IPO filing also shed light on Birkenstock's business operations. The brand is especially recognized for its footbed design which has remained unchanged for over 120 years. Notably, all footbeds are made in the company's own facilities in Germany which assemble 95% of its products.
Birkenstock has prioritized the Americas and Europe as its key markets, accounting for 54% and 36% of the brand's revenues last year respectively. The company's direct-to-consumer revenues have grown at a compounded growth rate of 42% between 2018 and 2022, making up 38% of revenues.
While many details about the IPO remain undisclosed, including the number of shares to be sold and their price, the filing has sparked an early buzz in the market. Other companies considering IPOs are closely watching Birkenstock's progress. If successful, this could rekindle the market with speculations suggesting that the valuation of Birkenstock could exceed $8 billion.
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