The company Birkenstock, with a tradition spanning nearly 250 years, plans to go public. According to foreign media reports, the brand’s majority owner, the American investment firm L Catterton, is discussing the potential for an initial public offering (IPO) with financial experts, and the company is reportedly valued at six billion dollars.
If the IPO occurs, the public will gain insight into the financial reports of the powerful Birkenstock for the first time, providing a very interesting view into its operations and, generally, market trends. L Catterton acquired Birkenstock in 2021 and also holds lucrative brands such as Savage X Fenty, the lingerie brand of musician and entrepreneur Rihanna, and Skims, the shapewear company founded by Kim Kardashian. Although it has not yet materialized, L Catterton is reportedly planning to take the stocks of these companies public as well.
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As reported by the portal High Snobiety, going public may seem appealing, but, as some industry examples demonstrate, there is a risk that the expected results may not materialize. A prime example is the French house Lanvin, which experienced a 25 percent drop in stock price on its first day of trading on the New York Stock Exchange (NYSE) in December 2022. Specifically, from an initial price of $10.20, it fell to $7.63 by the end of the first trading day. Nevertheless, many hope that Birkenstock will be just as appealing on the stock market as it is to consumers.
