Birkenstock the latest shoe IPO to drop in a tough market

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Sandal company Birkenstock needs to sell more clogs and boots and boost sales from its own website and boutiques to attract new shoppers amid a cost of living crisis, investors and analysts said before it lists on the New York Stock Exchange next week.

to put investor focus on the initial public offering market, which is gradually reopening after two relatively quiet years and a burst of activity in September.

Still, Birkenstock has much else going for it - including the ability to stay popular decades since first becoming well-known as somewhat frumpy but comfortable sandals that complete a laidback, hippie look. "The parallel with Crocs is that both aren't necessarily known for being beautiful, right?" said Jessica Ramirez, senior analyst at Jane Hali & Associates.

At a time when foot traffic to major retail stores has been falling, Birkenstock has seen steady store traffic but analysts say it must continue to expand its direct-to-consumer sales to pull in more customers.While Birkenstock had 6,000 wholesale partners in fiscal 2022 it operated only a small network of about 45 of its own boutiques as of June 30.

"The expression of interest from prominent cornerstone investors is remarkable," said Matt Oguz, CEO of Iris Family Office in Silicon Valley, who said he planned to buy Birkenstock shares.

 

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