Birkenstock has gone public.
Birkenstock Holding Ltd. sold about 10.8 million shares in the offering, its shareholders selling an additional 21.5 million. The German sandal company raised about $495 million, the Associated Press reported.
Birkenstock sandals came to the U.S. in the mid-1960s – today, they're a staple of comfort and style. But the shoe has, in part, come into mainstream footwear because of its emphasis on foot health over fashion. They're sometimes referred to as “Jesus sandals," not because of the water-friendly options that allow you to (partially) walk on water but because of a signature B.C.-era style. Even the designer credited with popularizing them in the U.S. called them “odd-looking sandals.”
Here's a look back on the sandal from its family shoemaker beginnings to its place in modern-day fashion.
The story of the iconic sandal goes like this, according to the history and heritage section of Birkenstock's website: The modern-day Birkenstock has roots in an 18th-century family shoemaking dynasty – the earliest mention of the shoemaker Johannes Birkenstock is from 1774. Generations later, Konrad Birkenstock designed a unique anatomical shoe featuring a rounded heel, malleable sole and different left and right feet, allowing the foot to roll. He sold flexible footbed insoles and contoured arch support.
His son launched the physician-endorsed “System Birkenstock” in 1932, a series of podiatry and specialist courses with an accompanying podiatry textbook in 1947. It was here that Carl Birkenstock laid out his plans to design a shoe based on the concept of “Naturgewolltes Gehen” or natural walking. His son, Karl Birkenstock, created the original “footbed sandal” with a flexible base and adjustable strap.
It was a time when stilettos were all the rage, and the first launch of the “Madrid” shoe at the 1963 shoe trade fair in Düsseldorf failed. They were the “laughingstock” of the fair, Karl Birkenstock said.
He pivoted and distributed pamphlets to doctors to drum up support for his sandals. Berlin-born American designer Margot Fraser, who suffered from foot pain, found her antidote in Birkenstocks while on a trip to Germany. Fraser brought Birkenstocks to the U.S. in 1966 and secured distribution rights to sell them in California by 1972.
From there, American popularity spread thanks to a loyal fan base of Northern California hippies, the Los Angeles Times reported. Birkenstocks were originally sold in health stores because of mainstream retail skepticism.
Apple founder Steve Jobs famously loved the sandals around this time. A “well-used” pair of brown suede Birkenstocks from the mid-1970s sold for $222,000 at an auction in November 2022. It was the highest price ever paid for a pair of sandals.
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During its early years (and perhaps even now), the words “Birkenstocks” and “ugly” went hand-in-hand.
“In the 1950s and 1960s, really design was heavily based on aesthetics over necessarily the function of the shoes,” says Liz Tregenza, a fashion historian, in Birkenstock’s 2022 “Ugly for a Reason” documentary series. “It was really about ... creating a total look and I think comfort had a secondary place.”
But the hippie and grunge circles quickly embraced the shoe as a symbol of counterculture. In 1992, Marc Jacobs drew inspiration from this and styled Tyra Banks in Arizona Birkenstock sandals in the infamous show that got him fired from Perry Ellis.
This wouldn't be the last time Birkenstocks appeared in high fashion. The 2012 Céline collection morphed them into what’s since been referred to as “Furkenstocks,” an adapted Arizona sandal lined with mink, Vogue India reports. Dior has a collection with them.
Heidi Klum even designed her own line of bejeweled Birkenstocks.
But even as the decades roll on, they’ve been called the “Jesus sandals,” deemed geeky and hallmarks of hipster culture. They’ve even been the subject of the hot socks and sandals debate – just see the “Socks and Sandals” jingle from Disney Channel’s “So Random!”
But since COVID-19 stay-at-home orders, today's styles place a greater emphasis on comfort. Birkenstocks are worn by celebrities and spotted in viral TikTok styling videos. They’re now part of a “cool girl” aesthetic. Margot Robbie even traded her pink heels in for a pair of them in the 2023 “Barbie” movie, though with great reluctance.
Birkenstock sandals are made at the company’s production facilities in Germany and the brand’s closed-toed shoes are made in Portugal. The four German factories are located in Bernstadt, Görlitz, Rhineland-Palatinate and Hesse.
An IPO is an initial public offering – you can think of it as a fundraising effort.
When a company is private, the shareholders often include comprised of founders, family, friends and professional investors, according to Investopedia. When a company goes public, it means they’re offering shares to the public for the first time, allowing the company to grow and public investors a front-row seat.
After going public, a company is subject to Exchange Act reporting requirements, according to the U.S. Securities and Exchange Commission.
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Birkenstock's IPO comes two years after it was acquired by private equity firm L Catterton and the investment company of Bernard Arnault, the billionaire owner of the LVMH conglomerate.
Birkenstock is valuing the company at $8.46 billion, the Associated Press reported. The stock opened at $41 each and ended the day down 12.6%.
Birkenstock sales boosted this year in part because of the Barbie movie’s use of the famous sandal. Bloomberg News reported a 29% rise in revenue last year.
