Birkenstock share placement: $1.5 billion in proceeds and focus on sustainable growth

Birkenstock share placement: $1.5 billion in proceeds and focus on sustainable growth

According to a report by www.frankenpost.de, the placement of Birkenstock shares brought in almost $1.5 billion (around €1.4 billion). The main owner L Catterton, linked to the luxury group LVMH and Bernard Arnault, receives around two thirds of this sum. The company plans to use IPO proceeds to reduce debt and emphasizes that it is focused on sustainable long-term growth. Despite the IPO, L Catterton still retains control of the company.

Birkenstock, headquartered in Linz am Rhein, has a long history dating back to 1774. The company describes itself as the “inventor of the footbed” and has developed into a fashion accessory in recent years, including through collaborations with luxury brands such as Dior and Manolo Blahnik.

In the first half of the current financial year, Birkenstock was able to increase its sales by 18.7 percent, while profits fell due to unfavorable exchange rates. For the previous financial year, the company reported sales of 1.24 billion euros and a profit of 187 million euros.

This development shows that despite sales growth, Birkenstock faces challenges, particularly in relation to exchange rate fluctuations and deleveraging. The fact that L Catterton remains in control could impact the company's long-term strategic direction. Companies also have the opportunity to strengthen their market positioning through further collaborations with luxury brands, which could have a positive impact on their sales. The financial industry must therefore continue to closely monitor developments at Birkenstock in order to make informed investment decisions.