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Here are 1-3 brief analogies for Birkenstock:

• The Dr. Martens of comfort sandals.

• The UGG of iconic, comfortable sandals.

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• Sandals: Iconic open-toe footwear known for their contoured cork-latex footbeds and ergonomic design.
• Clogs: Slip-on footwear, often with open or closed backs, featuring the characteristic Birkenstock footbed for comfort.
• Shoes: Closed-toe footwear, including sneakers, boots, and loafers, all incorporating their anatomical footbed design.
• Kids' Footwear: Smaller versions of their popular sandal and closed-toe styles designed for children.

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Birkenstock (BIRK) employs a hybrid business model, selling both directly to consumers (D2C) through its own stores and e-commerce platforms, and through a broad network of wholesale partners (B2B).

According to its public filings, Birkenstock's B2B (wholesale) channels generated approximately 63% of its revenue in fiscal year 2022, indicating that the company primarily sells to other companies for distribution. Its major customers, in the context of companies that purchase and resell Birkenstock products, include a diverse range of retailers. Birkenstock does not publicly disclose specific revenue percentages from individual wholesale customers due to the large number of partners.

However, prominent retailers that distribute Birkenstock products to the end consumer include:

• Nordstrom (NYSE: JWN)
• Zappos.com (owned by Amazon, NASDAQ: AMZN)
• REI (private company)
• Macy's (NYSE: M)

These retailers represent key points of sale for Birkenstock products, reaching a vast individual customer base.

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Oliver Reichert Chief Executive Officer

Oliver Reichert joined Birkenstock as a consultant in 2009 and became the first non-family member CEO in 2013, leading the company through a significant transformation. Previously, he worked as a war correspondent and a sports television executive for Deutsches SportFernsehen GmbH. He spearheaded the deal that resulted in the sale of a majority stake in Birkenstock to L Catterton, a private equity firm backed by LVMH, in 2021.

Ivica Krolo Chief Financial Officer

Ivica Krolo was appointed Chief Financial Officer of Birkenstock, effective February 1, 2025. Before joining Birkenstock, he served as a Partner and CFO at the investment firm EMH Partners since 2015, specializing in finance, tax, legal, and corporate administration. His prior experience includes roles as a certified public auditor and manager at PricewaterhouseCoopers and as an Audit Manager and Tax Consultant at Mazars.

Markus Baum Chief Product Officer

Markus Baum has been the Chief Product Officer (CPO) at Birkenstock GmbH & Co. KG since July 2019. He previously held positions within Birkenstock as Director Product and Director Footwear Division. Prior to his tenure at Birkenstock, he also served as Marketing Director at Adidas.

Klaus Baumann Chief Sales Officer

As Chief Sales Officer (CSO), Klaus Baumann is responsible for managing Birkenstock's global sales operations. His role involves overseeing product performance across international markets and coordinating pricing and planning strategies. He also leads BIRKENSTOCK 1774, which focuses on creative collaborations with external brands, including Dior.

Jochen Gutzy Chief Communications Officer

Jochen Gutzy joined Birkenstock in 2013 as Head of Communications, where he managed communications during the transition to Oliver Reichert's leadership as the first non-family CEO. After an 18-month period as Director of Corporate Communications for Germany and Austria at L'Oréal, he returned to Birkenstock in 2021 and guided the brand through its significant acquisition by L Catterton.

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Birkenstock (BIRK) faces several key risks to its business, primarily stemming from market dynamics, supply chain vulnerabilities, and operational cost pressures.

1. Intense Competition and Shifting Consumer Preferences: Birkenstock operates in a highly competitive footwear market, vying with established brands such as Adidas, Nike, Crocs, Teva, and Dr. Martens. This intense competition can lead to market share erosion, especially as competitors increase their marketing expenditures. The brand is also susceptible to volatile consumer preferences and fashion trends, which can significantly impact sales and revenue if its products fall out of favor or are perceived as aligned with niche subcultures. Furthermore, as Birkenstock products are often viewed as "somewhat luxury," economic downturns could lead consumers to substitute them with more affordable alternatives, further impacting demand.

2. Supply Chain Disruptions and Raw Material Dependency: The company relies on a limited number of suppliers for its key raw materials, particularly high-quality cork and leather, with cork primarily sourced from Portugal. Any disruptions in this supply chain due to geopolitical instability, logistical challenges, or natural disasters can severely impede production timelines and product availability. Additionally, fluctuations in the prices of these raw materials, such as leather and natural latex, can unpredictably increase production costs and consequently reduce profit margins.

3. Margin Pressures from Rising Costs and Global Expansion: Birkenstock is experiencing margin pressures from various operational factors. Rising labor costs in its production facilities pose a challenge to profitability. As the company pursues an ambitious global expansion strategy, it incurs significant investments in marketing, distribution, infrastructure, and talent acquisition in new markets, which can exert pressure on profit margins in the short term. Furthermore, currency fluctuations, given its international operations, expose Birkenstock to foreign exchange risk, potentially negatively impacting revenues and overall financial health.

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Birkenstock's main products include sandals, clogs, and other shoes, distinguished by their contoured cork footbeds and emphasis on comfort.

Addressable Market Sizes:

Global Footwear Market

• The global footwear market size was valued at USD 463.87 billion in 2024 and is projected to grow to USD 789.52 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 6.88% from 2025 to 2032.

Global Sandals Market

• The global sandals market is projected at USD 33.77 billion in 2025 and is expected to reach USD 48.1 billion by 2035, reflecting an overall growth of 42%.
• Another estimate indicates the global sandals market size was valued at USD 34.86 billion in 2025 and is expected to reach USD 49.48 billion by 2035, growing at a CAGR of 3.6% from 2025 to 2035.

Global Comfort Footwear Market

• The global comfort footwear market is expected to be valued at USD 47.37 billion in the year 2028.

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1. Expansion of Production Capacity: Birkenstock is actively investing in and expanding its production capacity to meet strong demand, which has historically outpaced supply. The company plans to significantly increase shoe production, with a goal to nearly double current levels by 2027. This expansion, including the acquisition of new factory space, will enable Birkenstock to produce more sandals, clogs, and footbeds, addressing a key limitation to its growth.
2. Product Diversification and New Categories: Birkenstock is strategically expanding its product portfolio beyond its iconic sandals into new categories such as closed-toe shoes (boots, sneakers, clogs), orthopedics, and professional and outdoor footwear. These newer offerings, particularly closed-toe styles, have shown strong performance and contribute to higher average selling prices. The company also continues to diversify with lifestyle products like sleep systems and natural cosmetics.
3. Global Market Penetration, particularly in Asia-Pacific (APAC): The company is focused on expanding its market reach globally, with a significant emphasis on the Asia-Pacific region, including new store openings and partner boutiques in countries like China and India. This strategic expansion aims to attract new customer segments and capitalize on the growing demand for premium products in these markets.
4. Direct-to-Consumer (DTC) and Retail Channel Expansion: Birkenstock is strengthening its distribution through both direct-to-consumer (DTC) and business-to-business (B2B) channels. The company is opening new brand-owned retail stores globally, with plans to reach approximately 100 stores by year-end, which tend to generate higher average selling prices and units per transaction. This expansion enhances brand presence and customer experience.
5. Average Selling Price (ASP) Increases and Premiumization: Birkenstock has demonstrated consistent mid-single-digit growth in its Average Selling Price (ASP). The brand's repositioning from a niche footwear company to a premium segment player supports this trend. Management has also indicated that there is room for further pricing adjustments to help offset costs and enhance profitability.

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Share Repurchases

• Birkenstock Holding plc announced a share repurchase program in May 2025 to buy back up to 3,927,344 shares for $200 million at a price of $50.925 per share.
• These repurchased shares, acquired from the underwriters during a secondary offering, are slated for cancellation, reducing the total outstanding shares.

Share Issuance

• Birkenstock priced its initial public offering (IPO) on October 10, 2023, at $46.00 per share, raising approximately $1.5 billion through the sale of 32.26 million shares.
• The company completed a secondary public offering on May 30, 2025, where BK LC Lux MidCo S.à r.l., an affiliate of L Catterton, sold 20,027,344 ordinary shares at $52.50 per share, generating about $1.1 billion in gross proceeds for the selling shareholder.

Inbound Investments

• In February and April 2021, L Catterton, a private equity firm backed by LVMH and Bernard Arnault's family investment company Financière Agache, acquired a majority stake in Birkenstock.
• This acquisition valued Birkenstock at approximately €4 billion (around $4.3 billion to $4.8 billion).
• The investment was intended to support Birkenstock's global growth, particularly in expanding market leadership in Europe and North America and increasing its presence in markets such as China and Asia, along with investing in its German production sites.

Outbound Investments

• Birkenstock acquired a component manufacturing plant in Arouca, Portugal, as part of its strategy to expand overall production capacity.

Capital Expenditures

• Birkenstock invested EUR 74 million in capital expenditures during fiscal year 2024, primarily focusing on expanding production capacity and its owned retail footprint.
• The company has made significant investments in its German production facilities, including modernizing its largest factory in Görlitz, constructing a new factory in Pasewalk, and strengthening other production sites.
• For the fiscal year ending September 30, 2025, Birkenstock anticipates capital expenditures to be approximately EUR 80 million.