{"id":68243,"date":"2023-10-03T12:03:29","date_gmt":"2023-10-03T16:03:29","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/birkenstock-proposes-terms-for-1-5-billion-ipo-pendingbirk\/"},"modified":"2023-10-03T12:03:33","modified_gmt":"2023-10-03T16:03:33","slug":"birkenstock-proposes-terms-for-1-5-billion-ipo-pendingbirk","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=68243","title":{"rendered":"Birkenstock Proposes Terms For $1.5 Billion IPO (Pending:BIRK)"},"content":{"rendered":"
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A Quick Take On Birkenstock<\/h2>\n

Birkenstock Holding Limited<\/strong> (BIRK) has filed proposed terms to raise $1.5 billion in gross proceeds from the sale of its ordinary shares in an IPO, according to an amended F-1\/A SEC <\/span>registration statement.<\/span><\/p>\n

The firm markets premium footwear products to consumers worldwide.<\/p>\n

My outlook on the Birkenstock IPO is Neutral [Hold] due to high valuation expectations from management and my doubts about the health of consumer demand in important markets.<\/p>\n

Birkenstock Overview<\/h2>\n

London, UK-based Birkenstock Holding Limited was founded in 1774 in Germany to design and sell comfortable and natural footwear to consumers.<\/p>\n

Management is headed by Chief Executive Officer Mr. Oliver Reichert, who has been with the firm since 2009 and was previously at “Deutsches Sportfernsehen (currently Sport1), including as a reporter and then as Chief Executive Officer between 2006 and 2009.”<\/p>\n

The company has more than 700 “silhouettes” of different shoes, but its five best-selling silhouettes generated 76% of the firm’s revenue in fiscal 2022.<\/p>\n

As of June 30, 2023, Birkenstock has booked fair market value investment of $2.1 billion in equity from investors, including private equity firm L Catterton.<\/p>\n

Birkenstock Customer Acquisition<\/h2>\n

The firm operates with a multi-channel “engineered distribution” model, allocating its limited supply to wholesalers and its growing direct-to-consumer [DTC] channel.<\/p>\n

The company has grown revenue at a CAGR of 20% from fiscal 2014 through fiscal 2022.<\/p>\n

Selling and Distribution expenses as a percentage of total revenue have trended higher as revenues have increased, as the figures below indicate:<\/p>\n

<\/span><\/p>\n\n\n\n<\/colgroup>\n\n\n\n\n\n
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Selling And Distribution<\/strong><\/p>\n<\/td>\n

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Expenses vs. Revenue<\/strong><\/p>\n<\/td>\n<\/tr>\n

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Period<\/p>\n<\/td>\n

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Percentage<\/p>\n<\/td>\n<\/tr>\n

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Nine Mos. Ended June 30, 2023<\/p>\n<\/td>\n

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27.7%<\/p>\n<\/td>\n<\/tr>\n

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FYE September 30, 2022<\/p>\n<\/td>\n

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27.9%<\/p>\n<\/td>\n<\/tr>\n

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FYE September 30, 2021<\/p>\n<\/td>\n

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24.5%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

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