What is Happening?
Family-owned German sandal brand Birkenstock is in talks to sell to European private equity firm CVC Capital for $5 billion.
While recently becoming a fashion trend, it appears consumers have been looking for more comfortable footwear for a while.
The company’s shoes are produced at a factory in Görlitz, Germany. And it appears other brands are also benefiting from the accelerated consumer demand for at home comfort. Companies like UGG, Crocs, and Birkenstock are showing strong growth from 2020.
What Does it Mean?
Birkenstock started selling shoes directly to consumers online in 2016. And this deal would mark the latest private equity deal involving a European shoe business.
🤔 Birkenstock expanded their product range to a wider assortment of finishes and styles. This created a product that blends comfort with fashion. We know other Australian brands have the same ability to expand finish and style to capture more of the comfort fashion segment.
@RM Williams, @Blundstone, @Driza-Bone - Hey! Can we hurry up and take one of our favourite aussie brands to the stratosphere already?!