Birkenstock has stepped onto the New York Stock Exchange with a $8.6 billion USD valuation. The German sandal maker is priced at $46 USD a share for its IPO, which is within the $44 to $49 USD range that was previously predicted. This marks official price that institutional investors are willing to pay before they begin selling the stock on open market and placing the value of the almost two and a half century old sandal company in the hands of the market.
The high-profile stock is slated to set the precedent for other consumer companies looking to go public. If it bodes well, it might set the pace for other brands like Kim Kardashian‘s Skims which are also looking to go public. The previous wave of IPOs did not do too well with companies like Allbirds Inc. and Rent the Runway Inc. hit the market. at a peak and many investors bet on the the brand’s growth. With many of the bets not working out, it signalled that investors were ultimately looking for companies that are a bit more old-fashioned on the bottom line and of course, making money. Birkenstock seems to fit the bill.
Birkenstock’s adjusted profits for the nine months ended June 30 saw it increase 47% to €182 million EUR with revenues increasing 21% to €1.1 billion USD and a 5% increase with the number of units sold. The stock has begun trading under BIRK starting today.
In case you missed it, here is an official look at the Nike Sabrina 1 “Grounded.”
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