Birkenstock share placement: Financial experts assess the company's $1.5 billion proceeds and future strategy.

Birkenstock share placement: Financial experts assess the company's $1.5 billion proceeds and future strategy.

According to a report by www.verlagshaus-jaumann.de, the Birkenstock share placement brought in just under 1.5 billion dollars (around 1.4 billion euros). Around two thirds of this go to the main owner L Catterton, who is linked to the luxury group LVMH and its billionaire boss Bernard Arnault. Birkenstock intends to use its share of the IPO proceeds to reduce debt, while L Catterton will retain control after the IPO.

Birkenstock's origins date back to 1774, and the company describes itself as the “inventor of the footbed”. Despite the previous eco-slipper image, the sandals have developed into a fashion accessory, also through collaborations with high-end brands such as Dior and Manolo Blahnik. In the first half of the current financial year, Birkenstock increased sales by 18.7 percent to around 644.2 million euros. The profit was 40.2 million euros, compared to 73.5 million euros in the previous year. The decline is mainly attributed to unfavorable exchange rates, while the last financial year ended with 1.24 billion euros in sales and 187 million euros in profits.

Given Birkenstock's successful stock market debut and the planned use of the proceeds to reduce debt, this could lead to a strengthening of the company's financial situation. Continuity of brand development and partnerships with luxury brands could continue to have a positive impact on sales. L Catterton's post-IPO control could also help ensure Birkenstock's long-term strategic direction. Overall, this indicates a solid positioning of the company in the market and in the financial sector.