Birkenstock Files for IPO and Warns Investors of Counterfeit Brands
Birkenstock, a well-known sandal manufacturer founded in 1774, has submitted its IPO paperwork and is cautioning investors about the risks presented by counterfeit brands that utilize social media to promote their products.
The company, originally established in Germany but now headquartered in London, intends to go public on the New York Stock Exchange under the ticker symbol “BIRK.”
Birkenstock has long faced challenges in safeguarding its intellectual property, as imitators have exploited the brand’s popularity and premium prices by offering cheaper alternatives. In its prospectus, Birkenstock acknowledges that some competition comes from retailer “private label offerings,” but there are also “knock-off products” attempting to deceive consumers on platforms like Facebook and other websites into believing that they are purchasing authentic Birkenstock items.
The filing states, “In the past, third parties have created websites to target Facebook users and users on other social media platforms with ‘look-alike’ websites designed to trick them into believing that they were buying Birkenstock products at a significant discount. If counterfeit products are successfully sold on e-commerce platforms managed by third parties, it could harm our brands and reputation.”
Although Birkenstock does not explicitly mention Amazon in its 206-page filing, it does mention refraining from using certain third-party websites to distribute its products due to the sale of counterfeit goods on such platforms.
Seven years ago, Birkenstock publicly severed ties with Amazon in the United States due to a surge in counterfeit and unauthorized sales on the platform. The company also announced that it would no longer permit authorized Birkenstock merchants to sell on Amazon.
“The Amazon marketplace, which operates as an ‘open market,’ creates an environment where we experience unacceptable business practices which we believe jeopardize our brand,” wrote David Kahan, then-CEO of Birkenstock USA, in a memo on July 5, 2016, addressed to “our valued Birkenstock partners.”
Kahan, now President Americas, further stated, “Policing this activity internally and in partnership with Amazon.com has proven impossible.”
Prior to its departure from Amazon, numerous Chinese sellers were promoting Birkenstock’s flagship Arizona sandal for $79.99, $20 below the retail price, according to ‘s reporting at the time.
Since 2016, Birkenstock has significantly expanded its direct-to-consumer e-commerce efforts in the United States. For the fiscal year ending on September 30, 2022, this channel accounted for 38% of the company’s revenue. Birkenstock plans to continue increasing its proportion of revenue from e-commerce.
Following the clash with Amazon, Birkenstock sold a majority stake in the company to L Catterton, a private equity firm backed by LVMH, in February 2021. According to the filing, L Catterton will retain a majority ownership stake in Birkenstock after the IPO.
In the filing, the company describes itself as “the oldest startup on earth” and emphasizes its resilient, timeless relevance, and multigenerational business credibility, backed by a family tradition spanning 250 years.
Meta, the parent company of Facebook, is well aware of counterfeiters’ activities on its platform. In 2021, Facebook and luxury brand Gucci jointly filed a lawsuit in California, accusing a user of Facebook’s U.S. sites of selling fake Gucci products.
The companies revealed that over a million pieces of counterfeit content were removed from Facebook and Instagram in the first half of 2020, based on reports from brand owners, including Gucci.
In the six months ending on March 31, Birkenstock’s revenue increased by 19% to 644.2 million euros ($693.2 million). However, net income during that period declined by 45% primarily due to a foreign exchange loss.
WATCH: Birkenstock files for U.S. IPO on NYSE
