27 July 2023
The most recent edition of our exclusive Leatherbiz Market Intelligence newsletter went live on July 25.
One story that stands out this time is that footwear brand Birkenstock can provide a good example for other companies using leather in their products.
Older than the US Declaration of Independence, Birkenstock specialises in sandal-type footwear with leather uppers and cork soles. The products last for years and take the shape of the wearer’s feet.
Now there is speculation that Birkenstock could float on the New York Stock Exchange and achieve a value of more than $6 billion.
The company was founded in 1774 in a famous footwear-producing region of Germany, Rhineland-Palatinate, and was run by members of the Birkenstock family until just over two years ago.
In 2021, LVMH-backed private equity firm L Catterton purchased the brand for around $4.5 billion. In July this year, L Catterton began to talk to business media about listing Birkenstock in the US, suggesting that an initial public offering could value the brand at more than $6 billion.
Market Intelligence has said leather’s ability to last a long time and retain its beauty is a story that the whole industry should tell with more enthusiasm. “Other manufacturers of products with leather should take this as an example because the value of the product can ultimately be reflected in the value of the company that produces it,” the newsletter said.