Birkenstock Holding filed for an initial public offering with the U.S. Securities and Exchange Commission. The filing shows revenues increasing to €1.24 billion ($1.33 bn) in FY22 from €727.9 million in fiscal 2020, a 31 percent two-year CAGR (compound annual growth rate).
The Germany-based footwear manufacturer’s fiscal year ends in September.
Net income climbed from €101.3 million in FY20 to €187.1 million ($201 mm) in FY22. Adjusted EBITDA grew at a 49 percent two-year CAGR from €194.8 million in fiscal 2020 to €434.6 million ($467 mm) in FY22, with adjusted EBITDA margin expanding 8 percentage points 35 percent.
Birkenstock’s prospectus noted that its “strongest, most developed regions” are the Americas, which accounted for 54 percent of revenues in FY22, and Europe, which accounted for 36 percent of revenues, while APMA represented 10 percent of revenues. Building on the success in the U.S., Birkenstock has taken back distribution in key markets, including the U.K., France, Canada, Japan, and South Korea, reducing the share of business in third-party distribution from 32 percent of revenues in FY18 to 14 percent in FY22.
Birkenstock reportedly filed a confidential prospectus to regulators in July, but its public filing late Tuesday would allow the company to join the New York Stock Exchange in early October. Sources told the Financial Times that its owner, L Catterton, aims to list the week beginning October 9.
The IPO could be valued at more than $8 billion, according to Bloomberg. Birkenstock’s initial prospectus didn’t say how many shares it would list or give an anticipated price range with proposed terms to be provided in a later filing.
Birkenstock was founded in 1774 and saw its family heirs step down from the company about ten years ago. L Catterton, which French luxury fashion house LVMH backs, bought a majority stake in Birkenstock in 2021 in a deal that valued the company at about €4 billion (then about $4.3 billion.
The filing indicated that entities affiliated with L Catterton will continue to control most of the shares’ combined voting power after the offering. Two members of the Birkenstock family retain a minority share.
Despite its lengthy history, Birkenstock indicated it’s positioned for accelerated growth in the years ahead.
Chief executive Oliver Reichert wrote to prospective shareholders, “We see ourselves as the oldest start-up on earth. We are a brand backed by a family tradition of a quarter of a millennium with the resilience, timeless relevance, and credibility of a multigenerational business. Yet, despite this heritage, Birkenstock remains empowered by a youthful energy level, with all the freshness and creative versatility of an inspired Silicon Valley start-up. We have retained the original spirit of our forefathers, who laid the foundation of a global business that is more relevant than ever before.
“Today, we are crowning this development with an IPO – a logical step that began with the stepping back of the family from the operational business. This took us to the next level through our partnership with L Catterton and now marks a new important milestone with our plan to go public, inviting a broader group of investors to join our undertaking. This is the beginning of a new chapter.”
Birkenstock reported revenues of €644 million ($692 mm) in the fiscal six months ended March 31, up 19 percent on the same period the previous financial year. However, net profit dropped 45 percent to €40 million ($43 mm) due to a sharp rise in operating expenses.
The company has attempted to sell more of its footwear directly to consumers instead of through retailers, which it said had driven up costs. Higher wages and a weaker U.S. dollar also hit profits. DTC has expanded from 18 percent of revenues in FY8 to 38 percent of revenues in FY22.
Goldman Sachs, JPMorgan and Morgan Stanley are listed as joint underwriters. The company plans to list its shares on the New York Stock Exchange under the symbol BIRK.
