German sandal maker Birkenstock is preparing for an IPO. Exactly at the time of the movie Barbie fueling the popularity of the iconic cork soled footwear.
Foggy or hip and comfortable. There’s really no middle ground when it comes to Birkenstock’s signature side buckle sandals. Since the introduction of the flexible ‘gymnastic model’ with the name Madrid in 1963, the popular shoe has made a stir among people worldwide. Everyone has an opinion about the sandal with cork sole, which has been the trademark of the shoe manufacturer from Linz am Rhein, located in the German region of the Eifel, for more than half a century.
The owner of Birkenstock senses his chances of capitalizing on the high-profile reputation of the German brand. In September, investment company Catterton L from the United States, which in turn is partly owned by luxury group LVMH, would like to list the brand on the American stock exchange. This is reported by the Bloomberg news agency based on insiders. Estimated proceeds: a sloppy 8 billion dollars, the equivalent of 7.3 billion euros.
More popular than ever
Double the value the company received when Catterton L acquired a majority stake in Birkenstock in 2021. The stock market plans are not entirely illogical. The beloved and maligned Birkenstock sandals are more popular than ever.
This is largely due to the hype surrounding the footwear after the movie Barbie came out at the end of last month. The new Hollywood blockbuster features actress Margot Robbie (Barbie) rocking pink stilettos in a glamorous pink dress. But the novelty is in the film’s tail when Robbie appears on screen wearing an unusual shoe choice: pink Birkenstocks.
In the US, the pink model Arizona was sold out very quickly, business newspaper knows Handelsblatt. With this, the shoe now also seems to convince the doubters. Incidentally, the marketing machine was started by American actress Kristen Stewart and influencer Kendall Jenner. They previously praised the health slippers on social media. Last year, the company achieved a turnover of 1.24 billion euros, the gross profit amounted to 435 million euros.
Time of flower power and music festival Woodstock
When Johann Adam Birkenstock linked his name to the brand in 1774, the shoemaker from Langen-Bergheim, a place above the smoke of Frankfurt, could not have dreamed that it would become so big in 2023. Until the 20th century, the Birkenstock brand led an inconspicuous existence. That changed when great-grandson Konrad Birkenstock decided to patent the soles of the footwear. He also opened two stores in Frankfurt. In 1925 he built a factory for insoles.
The company’s crossing to the US took place in the 1960s. Via the American-German clothing designer Margot Fraser, the shoe was immediately and especially popular with hippies. It was the time of flower power and music festival Woodstock.
In its nearly 250-year history, the German shoemaker stuck to its last for a long time. Until last year. Since then, Birkenstock has also launched sneakers. And there are even beds and cosmetics for sale under the brand name. But Barbie has shown that the German brand has only one showpiece: the sandal with cork sole, in this case for women in the color pink.
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