Description: Those comfortable Birkenstock sandals have been a favourite of many consumers for years, often symbolizing a counter-culture outfit. The arch-supporting footwear has been made in Germany since 1774, but this past week Birkenstock stock was publicly traded on the New York Stock Exchange for the first time. The initial public offering (IPO) brought in close to $500 million in exchange for 10.8 million shares. With manufacturing centred in Germany using predominantly European materials, it will be interesting to see if Birkenstock can maintain its traditions, given the new pressure of having to meet earnings expectations of a publicly-traded stock.
Date: October 12, 2023
1) Have you ever worn Birkenstock sandals? What do you think of them?
2) Do you think now that Birkenstock is publicly traded that it may face pressures to move production from Germany in order to reduce its costs?
3) Page 11-7 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses Initial Public Offerings (IPOs). What was the largest IPO in history and how much did it bring in?