Birkenstock's Stock Market Debut Now Chasing $10-Billion Valuation

News on this was first published August 2, 2023.

Update October 4, 2023: After initial reports suggested that Birkenstock were preparing to go public, it's been revealed those plans are fully in motion, with news breaking that the company is set to be listed on the New York Stock Exchange. Per Reuters, 32 million common shares will be up for purchase, with shares going between $44-49 per share, and Birkenstock's stock will be listed under the 'BIRK' ticker. The company's stock market debut valuation has jumped up by over $1 billion since reports from August, now sitting at $9.2 billion.

Birkenstock are gearing up for an expensive debut into the stock market, with sources saying they could launch as soon as next month. The valuation has been floated to be more than $8 billion, which is a steep increase from the $6 billion initially put forward by experts when the news first broke in early July.

A company tends to opt for IPO when demand for their stocks is anticipated to be high, which means the almost 250-year-old German company are most likely confident in their growth and continual customer demand. This tracks with their recent financial results, as they saw a 29 per cent increase in revenue last year. That put their total revenue up to 1.2 billion euros, and this growth is expected to continue thanks to boosted sales from the shoe’s appearance in the hit Barbie movie.

In terms of whether the IPO will be a viable option for Birkenstock, it’s impossible to say. The market has taken hits recently with high inflation and high interest rates, which has especially affected retail. Looking to history, the most recent footwear companies to go public are Allbirds, On, and Dr. Martens. They all made their stock market debut in 2021 and have all experienced decreases since then of 94 per cent, 7.6 per cent, and 67.35 per cent respectively (at the time of writing).

While this outlook is not completely positive, Birkenstock have strong name value and recognition and have seen a surge in mainstream markets in the past few years. The shoe is considered a staple rather than a luxury for many, so could Birkenstock beat the odds in a highly volatile market?