“We want to grow territorially”
Birkenstock is heading to Asia
November 12, 2023, 4:48 p.m
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The sandals have long since broken away from their former eco-slipper image; in recent years, Birkenstocks have long since developed into a fashion accessory. After its IPO in New York, the company is now setting its sights on a new market that major shareholder Arnault knows particularly well.
The sandal manufacturer Birkenstock wants to expand its business, especially in Asia, after its IPO in New York. “We want to grow territorially, especially in China, India and the Middle East,” said company boss Oliver Reichert to the “Handelsblatt”.
Birkenstock also wants to benefit from the expertise of major shareholder Bernard Arnault. The owner of the luxury goods group LVMH knows these markets particularly well. According to Reichert, the second focus is online trading. The company has so far held back there due to a lack of production capacity.
“With the opening of our new plant in Mecklenburg-Western Pomerania, we now have the necessary bandwidth,” said the managing director. The product range will be expanded to include closed shoes, work shoes and orthopedic insoles.
Birkenstock had sales of 1.24 billion euros and a net profit of 187 million euros in the financial year to the end of September 2022. Sales have already increased significantly in the current financial year. Reichert named annual sales growth of 15 to 18 percent as his goal.
Birkenstock went public in New York in October. Since 2021, the company has been majority owned by the US-French investment company L Catterton and the private investment company of the French billionaire Arnault family. Birkenstock employs around 3,000 people in Germany and around 6,200 people worldwide.
The origins of Birkenstock, headquartered in Linz am Rhein in Rhineland-Palatinate, date back to 1774. Almost 250 years ago, shoemaker Johannes Birkenstock laid the foundation for “a shoemaker dynasty,” according to the company. The company describes itself as the “inventor of the footbed”. The sandals have long since broken away from their former eco-slipper image; in recent years they have increasingly developed into a fashion accessory, also through collaborations with high-end brands such as Dior and Manolo Blahnik.