Sandal brands don’t typically come for IPO’s, but L Catterton-owned Birkenstock is going against the grain with a reported September listing. Don’t forget to subscribe to the Glossy Podcast for interviews with fashion industry leaders and Week in Review episodes, and the Glossy Beauty Podcast for interviews from the beauty industry. –Zofia Zwieglinska, international fashion reporter
Birkenstock is eyeing an IPO
The ubiquitous sandal brand, which is almost 250 years old, is preparing to launch an IPO, potentially as early as September, according to the Financial Times. This could value the brand at $8 billion, making it one of the largest valuations for a mid-market brand in recent years.
The brand has an appearance in the new Barbie film, which has driven a 340% increase in demand, according to AI company 3DLook. It has long been popular among fashion fans for its simple designs and designer collaborations with the likes of Jil Sander and Manolo Blahnik. On this week’s Week in Review podcast, our editor Jill Manoff and I talk about how the brand has grown and what kind of brands should seek out IPOs.
The news is among a number of rumored forthcoming fashion IPOs, which also include Skims, Shein and Reformation. The companies that tend to do well on the stock market remain in the luxury sector, but with more DTC companies growing to new heights, that could be changing.
VF revenues drop, including wholesale
As reported last week, VF Corporation saw its revenue drop 8% to $2 billion in the quarter ending on July 1. Growth at The North Face was more than offset by declines at Vans, Timberland and Dickies. The North Face’s revenue increased 12% to $538 million, while Vans’ revenue dropped 22% to $737.5 million and Timberland’s dipped 6% to $253.8 million.
The group has been struggling for consecutive quarters. However, the North Face’s numbers point to rising interest in the brand’s products and marketing, both of which have somewhat shifted over the last couple of months to attract younger consumers.
Overall, the group saw revenues increase 3% across international markets, while revenues in EMEA dropped 2%. Wholesale revenue was down 12%, while direct-to-consumer revenue decreased 3%.
Many brands are reconsidering their wholesale partnerships, wanting more control of their product assortment and presence. However, digital wholesale platform Joor found that wholesale still accounts for at least half of sales for 74% of global brands.
Amazon attributes sales boost to fashion
Amazon released its second-quarter earnings on Thursday. The company announced that its revenue increased 11% year-over-year, to $134.4 billion. Its North American and international segments saw similar growth, with sales increasing 11% and 10%, respectively.
The company attributes its success to a number of factors, including an expanded Prime Day, with members purchasing more than 375 million items during the annual event. Other factors included its expansion of free same-day and one-day delivery in the U.S., and its expanding product assortment in the U.S., including with newly offered fashion brands like Victoria’s Secret.
The marketplace had already sold styles by names including Birkenstock, Longchamp and Kate Spade, as well as Rent the Runway. Although fashion brands have been concerned about diminishing their cachet and customers’ experience through Amazon, the site provides valuable reach for younger DTC brands.