Footwear Insight

6 • Footwear Insight ~ September/October 2023 footwearinsight.com B irkenstock, whose brand is syn- onymous with its footbed and its long German heritage dating back to 1774, filed for a public offering on the New York Stock Exchange on September 12. e company, which is projected to have an $8 billion valuation when it goes public, plans to trade under the ticker "BIRK." e offering is projected to go off during the first half of October. Private equity firm L. Catterton, backed by LVMH, purchased a majority stake in the longtime family-owned company in 2021 in a deal valued at €4 billion ($4.29 billion). Aer the IPO is completed, the private equity firm will continue to have a majority stake in the company. e F-1 filing by the company, headed by CEO Oliver Reichert, offers some insight on Birkenstock's business and recent financial results. Since 2014 and Reichert's start with the company, Birkenstock has grown annual revenues from 292 million euros to 1,243 million euros ($1.33 billion) in FY22 (ended Sept. 30, 2022). e company achieved a two-year compound annual growth rate (CAGR) of 31 percent between FY20 and FY22 as its average selling price (ASP) expanded 16 percent and Direct- to-Consumer penetration jumped to 38 percent of FY22 revenues from 30 percent in FY20. Closed toe styles represented 20 percent of FY22 sales, up from 15 percent a year earlier. Geographically, the brand generated 54 percent of annual revenues in the Americas in FY22, followed by 36 percent of sales from European markets. Birkenstock had 6,000 wholesale part- ners in over 75 countries in FY22, ranging from orthopedic specialists to major department stores and fashion boutiques. As of June 30, 2022, strategic partners operated 270 mono-branded Birkenstock doors. e company also has a network of 45 owned retail stores, including 20 in its home market. ere is strategy in place to open new location in markets such as Soho and Brooklyn in New York City, Venice Beach in California, Tokyo, London, and Delhi. An estimated 72 percent of Birkenstock's customers are female, and 61 percent are either Baby Boomers (30%) or Millennials (31%), according to information contained in the registration statement. Income-wise, 69 percent of brand customers make either $50-100K (35%) annually or $100-200K (34%). Citing a recent consumer survey, the company says its average customer owns 3.6 pairs of Birkenstocks today and that 86 percent of recent Birkenstock purchasers indicated that they would purchase the brand again. — Bob McGee Birkenstock Going Public: What We Learned OrthoLite Founder Hall of Fame Bound FINANCIAL ANALYSIS NSGA HONOR G lenn Barrett, founder and CEO of OrthoLite, is among four industry figures who will be inducted in the Class of 2024 of the National Sporting Goods Association (NSGA) Sporting Goods Industry Hall of Fame. Barrett founded OrthoLite in 1997, in- troducing a new open-cell PU foam insole technology that led OrthoLite to become recognized as a leader in branded footwear component technologies. is open-cell PU foam technology offered a new solution inside the shoe that was not only more comfortable, but it also provided a cooler, drier, and healthier interior environment inside of the footwear. is product also proved to be easier on the planet by using 5% recycled outsole rubber waste material in the mix. Today OrthoLite partners with more than 500 footwear brands. In Addition to Barrett, the 2024 class of NSGA Hall of Fame inductees also includes Cathy Pryor (Hibbett Sports), Karsten Solheim (PING Golf ) and Mike ompson (Rawlings). e NSGA Hall of Fame dinner and induction ceremony takes place in Phoenix in May 2024. The brand generated 54 percent of annual revenues in the Americas in FY22, followed by 36 percent of sales from European markets. Glenn Barrett THE FOOTWEAR EYE

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