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The Birkenstock sandals are called ugly and are called “Jesus sandals”. Commercially, the German sandals have a much higher reputation.
An IPO is now being considered with a value of six billion dollars, according to Bloomberg, the equivalent of NOK 64 billion.
It’s a nice price for a sandal empire, but according to Bloomberg columnist Andrea Felsted, there are several signs that today’s owners are about to take off their shoes.
One is that the trend of light, comfortable shoes may have passed its peak. And the second is that consumers, especially in Asia, have curbed this kind of consumption, especially after the reopening.
Foot lengths for Crocs
The valuation of 12 times operating profit EBITDA will be much higher than for competitors Crocs Inc. and dr. Martin’s PLC. These are only valued at 7.7 and 6 times operating profit EBITDA.
The article continues below the adOne of the dominant owners in Birkenstock is the private equity fund L Catterton, which is backed by the luxury conglomerate LVMH. When they bought it two years ago, it was based on a valuation of $4.9 billion.
– Private equity firms usually make investments with a horizon of three to five years, so exploring options after two years seems premature, Felsted points out.
She thinks the current owner wants to reduce footwear exposure after riding the trend wave.
Especially during the home office period, casual footwear came out on top. In the first half of the year, sales amounted to NOK 7.5 billion.
Bernard Arnault (th) is the second richest person in the world after Elon Musk and is one of the owners of Birkenstock through his luxury group LVMH. Here he is with ex-President Donald Trump and his son Alexandre in Trump Tower. (Photo: MIKE SEGAR/Reuters/NTB Scanpix)14,000 for cork sandals
The Birkenstock family is still involved in the 250-year-old company. Brothers Christian and Alex Birkenstock could receive NOK 20 billion in shares if the IPO is successful.
The cork-soled shoes were developed in 1963 by Karl Birkenstock and were presented as training sandals to promote a natural gait.
The collaboration with various designers has resulted in some special models being sold for NOK 14,000.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases through links that lead directly to our pages. Copying or other use of any or all of the Content may only take place with written permission or as permitted by law. For further conditions see here.
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Published: 19.06.23 — 02:15
It is called ugly, but now the trend phenomenon is valued at NOK 64 billion
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