Sandal brands don’t typically come to IPOs, but L Catterton-owned Birkenstock goes against the tide with its reported September listing. Don’t forget to subscribe Glossy Podcast for interviews with fashion industry executives and Week in Review episodes, as well as the Glossy Beauty Podcast for interviews from the beauty industry. –Zofia Zwieglinska, international fashion reporter
The ubiquitous sandal brand, which is nearly 250 years old, is gearing up for an IPO, possibly as early as September, the company said Financial Times. That could see the brand valued at $8 billion, making it one of the highest valuations for a mid-market brand in recent years.
According to AI company 3DLook, the brand has an appearance in the new Barbie movie, which has resulted in a 340% surge in demand. It’s long been loved by fashionistas for its understated 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 which brands should be aiming for an IPO.
The news is among a string of rumors about upcoming fashion IPOs, which also include flies over, Shein And reformation. The companies that tend to do well in the stock market remain in the luxury sector, but as more DTC companies reach new heights, that could change.
VF sales down, including wholesale
As reported last week, VF Corporation reported an 8% drop in revenue to $2 billion for the quarter ended July 1. Growth at The North Face was more than offset by declines at Vans, Timberland and Dickies. The North Face’s revenue rose 12% to $538 million, while Vans’ revenue fell 22% to $737.5 million and Timberland’s fell 6% to $253.8 million.
The group has had problems for the past few quarters in a row. However, figures from The North Face suggest growing interest in the brand’s products and marketing, which have shifted somewhat in recent months to attract younger consumers.
Overall, the group recorded a 3% increase in sales in international markets, while sales in EMEA fell by 2%. Wholesale sales fell 12%, while direct sales sales fell 3%.
Many Brands are rethinking their wholesale partnerships and want more control over their product range and presence. The digital wholesale platform Joor found that wholesale still accounts for at least half of sales for 74% of global brands.
Amazon attributes the surge in sales to fashion
Amazon released its second-quarter results on Thursday. The company said its revenue grew 11% year over year to $134.4 billion. The North American and International segments saw similar growth, with revenue rising 11% and 10%, respectively.
The company attributes its success to a number of factors, including an expanded Prime Day that saw members purchase more than 375 million items during the annual event. Other factors included the expansion of free same-day and one-day delivery in the US and the expansion of the product range in the US, including new fashion brands such as Victoria’s Secret.
The marketplace has sold models from names such as Birkenstock, Longchamp and Kate Spade, as well as Rent the Runway. Although fashion brands have feared that Amazon will tarnish their reputation and customer experience, the site offers valuable reach for younger DTC brands.
Comments are closed.