Overvaluation Dimmed $BIRK but Birkenstock / Tekla Shows How Long the Road Can Be

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Birkenstock / Tekla – A limited collection of footwear and sleepwear, inspired by the dream-like states that feed creativity. Comprising elevated takes on Birkenstock’s iconic silhouettes and Tekla’s classic designs, all crafted in subtle and saturated colourways.

Source: Birkenstock / Tekla

The extreme valuation of Birkenstock dampened what should have been a celebrated IPO. I explained in a comment on LinkedIn the brand should have arrived in the market at 25-35 a share. My reasoning was Birkenstock is not yet touching every aspect of the market that it can. I also based this on the Arizona in Foot Locker marked down to $79.99 showing one of the few instances where the product is supplant discounted at retail.

5 Things Birkenstock Must Do to Justify Their IPO

In the post above I delivered ways they could justify the high target price and one of those ways was for the company to “Implement a Birkenstock apparel strategy.”

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When footwear companies make the decision to launch into apparel it’s a tricky and complex play. (Note Allbirds’ write down on millions of clothing inventory after a failed apparel strategy.) Birkenstock appears to be positioning their step into fashion by navigating within realms of familiarity. Tekla is an artisanal homeware brand.

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Within the realm of products created by Tekla they also delve into sleepwear. The design of the product is elegant, flowing and beautifully executed. Tekla collaborates with luxury and streetwear brands to produce elevated sleepwear which in many instances can be paired with overcoats and accessories to actually extend into spaces outside of the home.

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But it’s the beautiful visual merchandising of the product online which moved me to write about this collaboration. The introduction of apparel via collaboration also inspired me to share this post. Birkenstock is presenting this as a ready to wear alternative. As perfect as this collaboration is there are overlooked aspects and opportunities in the Tekla collection.

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Birkenstock is in the unique position of owning an amazing product space with comfort, and with Tekla that position is expanded through apparel, but a subtle imagery addition intentionally creates Birk x Tekla as an apparel option for rest and relaxation. In our home we have purchase Blissy pillowcases. The product arrives with aromatherapy sprays contributing to calm when paired with auditory sounds to align chakras.

How much more could Birkenstock and Tekla do with the presentation of this collection? This is why I consistently state Birkenstock may be capable of doing more in the recovery space than any other footwear and apparel company. Luxury recovery and meditation isn’t a category, is it? I doubt the brand would label itself in this way, but they could definitely insinuate. Had you heard of this collab? What do you think of Birkenstock’s foray into apparel?

 

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