Birkenstock considering IPO as "ugly sandal" trend continues

Birkenstock is considering an IPO that could value the iconic comfort sandal maker at $6 billion (£4.7bn).

The German footwear brand is owned by LVMH-backed private equity house L Catterton, which in 2021 bought a majority stake in Birkenstock valuing it at the time at around €4 billion (£3.4bn). Financiere Agache, the family office LVMH chief Bernard Arnault, also participated in the purchase of the brand alongside L Catterton.

According to Reuters, L Catterton is working with advisers, including Goldman Sachs and JPMorgan, on a potential listing in New York that could happen this year or next. The report cites sources close to the company but L Catterton has declined to comment.

The move would mark a relatively early exit for L Catterton but could be indicative of its desire to sell the brand while the "ugly sandal" trend is still riding high.

The Birkenstock family is still involved in the brand, which can trace its roots back to 1774, and brothers Christian and Alex Birkenstock still hold shares. The brothers were believed to have netted around £1.3bn each after the sale to L Catterton and could be in for another big pay day if the brand floats, though it is not known how large their shareholdings are.

Johann Adam Birkenstock founded his business in Frankfurt in 1774 but it was more than a century later that his descendant Konrad Birkenstock began manufacturing and selling flexible footbed insoles, thus establishing its reputation for being pioneers in comfort and supportive footwear.

Konrad went on to develop the first "contoured arch support" in 1902 and the shoes went on to gain the approval of physicians and podiatrists.

It was in the 1960s that Birkenstock expanded internationally moving into the US and by the 1970s it was a global name. But their reputation as a fashionable option took off in the 1990s when they became synonymous with the grunge movement. More recently the brand has entered the high fashion space with collaborations with the likes of Dior and Manolo Blahnik (main image), while luxury labels such as Chanel and Hermes have embraced the Birkenstock's unashamedly "ugly" vibe creating their own comfort sandals (priced considerably higher than those sold by Birkenstock).