{"id":3243,"date":"2023-10-05T15:09:32","date_gmt":"2023-10-05T15:09:32","guid":{"rendered":"https:\/\/ceo.com.pl\/en\/?p=3243"},"modified":"2023-10-05T15:12:02","modified_gmt":"2023-10-05T15:12:02","slug":"birkenstock-on-the-stock-market-will-it-repeat-the-success-of-crocs-67158","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/birkenstock-on-the-stock-market-will-it-repeat-the-success-of-crocs-67158\/","title":{"rendered":"Birkenstock on the stock market: will it repeat the success of Crocs?"},"content":{"rendered":"<div>\n<ul>\n<li><strong>The 10 largest global footwear brands saw a total increase in stock prices by 387% over the last decade, compared to a 155% increase in the S&amp;P 500 index. <\/strong><\/li>\n<li><strong>Footwear brands Deckers (685%) and previously disliked Crocs (546%) led the pack.<\/strong><\/li>\n<li><strong>Some of the recent footwear stock market debuts have failed, including Dr Martens and Allbirds.<\/strong><\/li>\n<\/ul>\n<p>For all individual investors considering Birkenstock before next week&#8217;s high-profile IPO, an analysis by eToro may reveal that investing in the world&#8217;s largest footwear brands can be a lucrative pastime.<\/p>\n<p>The eToro trading and investment platform looked at the results of stock prices for the ten largest footwear-related firms [see Table 1] in the world and found that their stock prices increased by a total of 387% in the last decade (based on an evenly weighted index). That\u2019s more than twice the 10-year returns from the S&amp;P 500 index (155%).<\/p>\n<p>However, recent IPOs for popular footwear companies have fallen &#8211; Allbirds has recorded a fall of 96% since its stock market debut in 2021, and Dr Martens &#8211; also listed in 2021 &#8211; fell by 64%. Swiss footwear brand On Holding, which went public in 2021, did better, falling by only 27% since its debut, but by 60% this year.<\/p>\n<p>Birkenstock is set to go public next week, targeting a valuation of $10 billion, which would make it the fifth largest footwear brand in the world in terms of market capitalization.<\/p>\n<p><strong>Ben Laidler, Global Markets Strategist at eToro, said: <\/strong> <em>&#8220;The Birkenstock brand has become almost synonymous with Germany and there&#8217;s a lot of emotion associated with this IPO. Our research suggests that the buzz may be justified, since the world&#8217;s biggest footwear brands have rewarded investors in the past. However, it also highlights the need for long-term focus on diversification, as some brands only generate large profits several years after going public, and some of the recent footwear offerings have struggled.&#8221;<\/em><\/p>\n<p>The world&#8217;s most valuable footwear manufacturer Nike saw a 160% increase in its stock price over the last 10 years, with a more modest increase of 12% over the last five years. German giants Adidas and Puma also saw substantial increases in their stock prices over the last decade, by 105% and 171% respectively.<\/p>\n<p>Perhaps more noteworthy for investors considering the IPO of the German cult brand Birkenstock are the results of Crocs&#8217; stock prices. Seen for years as unfashionable and unloved by some, Crocs\u2019 popularity has exploded in recent years, and the company&#8217;s stock price has risen by 318% in just five years and 546% over the decade, with only Deckers achieving better results (685%).<\/p>\n<p>Of the top ten footwear-related brands, only VF Corporation, whose brands include Timberland and Vans, saw a 10-year decline in stock prices, falling by 65%.<\/p>\n<p><strong><em>Ben Laidler adds: <\/em><\/strong><em>&#8220;The Birkenstock and Crocs stories bring natural comparisons to mind, as both brands have moved from the fringes to mainstream fashion in recent years, and Birkenstock will surely hope for a similar trajectory in share prices to that of Crocs after going public. However, the picture in the industry isn&#8217;t always rosy, and consumers can often be fickle. As our research shows, some popular brands such as Dr Martens and Allbirds haven&#8217;t met expectations after going public.&#8221;<\/em><\/p>\n<p><strong>Table 1:<\/strong> Shows the 10-year stock price performance of the ten largest global footwear brands.<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Company<\/strong><\/td>\n<td><strong>IPO Year<\/strong><\/td>\n<td><strong>Market Capitalization (Billion USD)<\/strong><\/td>\n<td><strong>Stock Price Change since start of year<\/strong><\/td>\n<td><strong>Five Year Stock Price Change<\/strong><\/td>\n<td><strong>10 Year Stock Price Results<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Nike<\/td>\n<td>1980<\/td>\n<td>144.7<\/td>\n<td>-19%<\/td>\n<td>12%<\/td>\n<td>160%<\/td>\n<\/tr>\n<tr>\n<td>Adidas<\/td>\n<td>1995<\/td>\n<td>30.1<\/td>\n<td>29%<\/td>\n<td>-23%<\/td>\n<td>105%<\/td>\n<\/tr>\n<tr>\n<td>Deckers<\/td>\n<td>1993<\/td>\n<td>13.5<\/td>\n<td>30%<\/td>\n<td>344%<\/td>\n<td>685%<\/td>\n<\/tr>\n<tr>\n<td>Li Ning<\/td>\n<td>2004<\/td>\n<td>10.7<\/td>\n<td>-51%<\/td>\n<td>345%<\/td>\n<td>495%<\/td>\n<\/tr>\n<tr>\n<td>Puma<\/td>\n<td>1986<\/td>\n<td>9.3<\/td>\n<td>6%<\/td>\n<td>37%<\/td>\n<td>171%<\/td>\n<\/tr>\n<tr>\n<td>On Holding<\/td>\n<td>2021<\/td>\n<td>8.3<\/td>\n<td>52%<\/td>\n<td>N\/A<\/td>\n<td>N\/A<\/td>\n<\/tr>\n<tr>\n<td>Skechers<\/td>\n<td>1999<\/td>\n<td>7.6<\/td>\n<td>17%<\/td>\n<td>79%<\/td>\n<td>372%<\/td>\n<\/tr>\n<tr>\n<td>VF Corporation<\/td>\n<td>1951<\/td>\n<td>6.4<\/td>\n<td>-40%<\/td>\n<td>-81%<\/td>\n<td>-65%<\/td>\n<\/tr>\n<tr>\n<td>Asics<\/td>\n<td>1999<\/td>\n<td>6.1<\/td>\n<td>77%<\/td>\n<td>209%<\/td>\n<td>205%<\/td>\n<\/tr>\n<tr>\n<td>Crocs<\/td>\n<td>2006<\/td>\n<td>5.4<\/td>\n<td>-19%<\/td>\n<td>318%<\/td>\n<td>546%<\/td>\n<\/tr>\n<tr>\n<td>eToro Footwear Brands Basket<\/td>\n<td>N\/A<\/td>\n<td>N\/A<\/td>\n<td>3%<\/td>\n<td>124%<\/td>\n<td>387%<\/td>\n<\/tr>\n<tr>\n<td>S&amp;P 500<\/td>\n<td>N\/A<\/td>\n<td>N\/A<\/td>\n<td>12%<\/td>\n<td>47%<\/td>\n<td>155%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Source: Refinitiv as of October 2, 2023.<\/p>\n<p><em>*Past performance is not indicative of future results.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The 10 largest global footwear brands saw a total increase in stock prices by 387% over the last decade, compared to a 155% increase in the S&amp;P 500 index. Footwear brands Deckers (685%) and previously disliked Crocs (546%) led the pack. Some of the recent footwear stock market debuts have failed, including Dr Martens and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3244,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[14],"tags":[3697,2481,2482,2753,3698,3231,3232,2701],"class_list":["post-3243","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","tag-adidas","tag-ben-laidler","tag-etoro","tag-lot","tag-refinitiv","tag-sp","tag-sp-500","tag-usd"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/3243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=3243"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/3243\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/3244"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=3243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=3243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=3243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}