ere not disclosed, it was reported at the time that the investment valued the company at US$4.9 billion. Birkenstock recently reported a 21 per cent increase in revenue for the nine months to 30 June to 1.12 billion euros, compared with 921.2 million euros for the prior corresponding period. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 16 per cent, to 387 million euros in the same period. Barbie and Birkenstocks  Birkenstock’s transformation from ‘ugly shoe’ worn by unstylish grandparents to trendsetting global fashion business has been in the works for several years.  Ever since Celine’s then-creative director, Phoebe Philo, sent models down the runway in fur-lined Birkenstock-style sandals for her Spring 2013 collection, the luxury fashion crowd has embraced the brand, from Valentino to Dior and Manolo Blahnik, as well as more mainstream retailers, such as J.Crew.  The brand recently cemented its cult status when it appeared in the Barbie movie starring Margot Robbie, which has sold more than US$1 billion in tickets since it was released at the end of July. In the film, Barbie, played by Robbie, tries to forgo the boxy sandals and return to her customary high heels. But (minor spoiler alert), in the end, she is seen wearing a pair of rose-pink Birkenstocks.  Following the film, artificial intelligence company 3DLook reported a 346 per cent increase in Google searches for “Birkenstock sandals for women”, setting the stage for the company’s upcoming IPO.  Why is Birkenstock filing for an IPO now? As Neil Saunders, managing director and retail analyst at GlobalData Retail explained, “An IPO has been on the cards for a while.”  “Since it acquired the business, L Catterton has grown Birkenstock and increased the value of the company. They have been satisfied with the progress and believed that an IPO was the next logical step. However, the timing of an IPO has been uncertain, as the market for offerings has been choppy and L Catterton wanted to maximise the valuation,” Saunders told Inside Retail.  With the market now seeming to be picking up, L Catterton has finally pulled the trigger. In July, L Catterton’s beauty firm Oddity, home to Israel-based makeup brand Il Makiage, rose 40 per cent on its Nasdaq debut and was valued at US$2.8 billion (though it has since fallen over 30 per cent).  “For L Catterton, an IPO is about generating a return on their investment,” Saunders said. “The company has owned Birkenstock since early in 2021 and has helped grow sales, pushing revenue to well over US$1 billion last year. Profit has also grown significantly. This has helped increase the value of the company and L Catterton now wants to cash out.”  Indeed, the private equity firm is already shopping around for other investments, having just this month acquired a minority stake in Maria Nila, a Swedish sustainable professional haircare brand, and invested in luxury skincare label Eighth Day. Potential downsides of Birkenstock’s IPO Birkenstock enjoys widespread appeal, however, Saunders warned that the halo surrounding the brand may not last, post-IPO.  “Birkenstock’s performance will now be subject to much greater scrutiny. While the brand is currently on a roll and is very popular, there is no guarantee that growth rates will be maintained, which would put the share price under pressure,” he said. “There will be an expectation from investors that performance will remain strong and the share price will take a hit if this does not materialise.” One example of that happening is Allbirds, a once-trendy footwear brand that went public in November 2021, raising more than US$300 million in its IPO. Since then, however, its share price has lost over 95 per cent of its original value and now sits at US$1.26.  Of course, no one can be certain whether Birkenstock will experience a similar fate. The brand has already survived for nearly 250 years, and its customers are extremely loyal.  The Barbie movie and designer collaborations, which have helped Birkenstock increase its appeal with a younger, trendier and more affluent audience, may help provide a soft landing post-IPO.