Birkenstock, the renowned footwear brand with roots dating back to 1774, is gearing up for its New York Stock Exchange (NYSE) debut under the ticker 'BIRK'. The company plans to price its shares at $46 each, within a range of $44-$49, intending to sell over 32 million shares in the offering.
The listing comes after a period of significant growth for Birkenstock, which saw its sales skyrocket from $343 million in 2014 to $1.3 billion in 2022. This growth was largely attributed to partnerships with iconic designers such as Christian Dior, Manolo Blahnik, and Valentino Garavani following its acquisition by L Catterton and Bernard Arnault's investment firm.
Despite this success, David Trainer of New Constructs warns of a challenging market due to the ongoing cost-of-living crisis. The warning comes as Birkenstock outlines plans for expansion into Asian and US markets. Trainer's caution reflects recent trends in the market where other footwear companies like AllBirds, Dr. Martens, and On Holding saw their market values decline post-IPO. This trend has also been observed in tech firms like Arm Holdings (NASDAQ:ARM) and Instacart (NASDAQ:CART).
With its planned NYSE listing, Birkenstock is set to enter a tumultuous market. Nevertheless, the company's strong sales performance and strategic collaborations position it as a noteworthy entrant on the exchange.
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