Wearing the chunkiest, ugliest shoes has always been in fashion for some. But now it’s clog girl summer, and Birkenstock is bracing for a possible September IPO that would value the company anywhere from $8 billion to $10 billion, according to Bloomberg.
Birks have always been lurking. The German sandal has enjoyed several waves of popularity since it first arrived in the US in the ’60s, including in the 90s and 2000s when the brand proved it wasn’t just for Deadheads as mega celebrities wore them. And just like other perfectly horrendous footwear options (Crocs just reported a record $1 billion of revenue for the second quarter and is valued at ~$6.7 billion), Birks are back.
- Birkenstock’s revenue jumped about 29% to $1.3 billion last year.
- Celebs like Kendall Jenner are rocking Birks this summer, and the sandal even made it in a couple of scenes of the new Barbie movie, which Bloomberg reports helped boost recent sales.
It’s by design: Two years ago, Birkenstock was acquired in a deal that valued the company at roughly $4.9 billion by L. Catterton, the private equity firm backed by LVMH, the luxury conglomerate that keeps Bernard Arnault constantly trading spots with Elon Musk on the list of richest people in the world. Since the acquisition, the brand has collabed with high-end designers like Dior and Manolo Blahnik.
Looking ahead…sources told Bloomberg that the timing and size of the IPO haven’t been nailed down yet, but the potential plans are another sign that market debuts are making their own comeback.
Source: Morning Brew