Birkenstock Scores $8.6 Billion Valuation in IPO
It looks like Birkenstock is striding onto the New York Stock Exchange with an $8.6 billion valuation.
The German sandal maker priced its IPO at $46 late Tuesday, within the $44 to $49 range previously projected by the company, according to a company statement.
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That’s the price the institutional investors buying into the offering will pay. Those players will then turn around and start selling the stock on the open market on Wednesday morning, putting the value of the 249-year-old sandal maker into the hands of the broader market.
The stakes are high in the offering, and not just for L Catterton, which bought control of the company in 2021.
After a long drought, the consumer IPO market has been in something of a rebound. For-profit thrift store Savers Value Village, fast-casual restaurant Cava Group Inc. and the L Catterton-backed beauty and wellness tech company Oddity Tech all went public over the summer.
The high-profile Birkenstock brings that trend to the next level.
If the stock performs well, it might help set the scene for other consumer companies that are said to be looking to go public, including Kim Kardashian’s Skims, the Softbank-backed Vuori or the Permira-backed Golden Goose.
That would put Birkenstock ahead of the next wave of IPOs.
The last wave didn’t go so well, in 2021, when companies like Allbirds Inc. and Rent the Runway Inc. jumped in when the market was roaring and investors were willing to bet brand profile and growth would lead to profits.
Now that so many of those bets didn’t pan out, investors are looking more for companies that are a little more old-fashioned on the bottom line and make money.
And Birkenstock fits the bill.
For the nine months ended June 30, the company’s adjusted profits increased 47 percent to 182 million euros while revenues increased 21 percent to 1.1 billion euros and the number of units sold rose by 5 percent.
But Wall Street at large will have its own say on Wednesday, when the stock starts trading under the ticker “BIRK.”
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