German sandal maker Birkenstock recently had its initial public offering (IPO) on Wall Street. This means that the company sold shares to the public for the first time. The shares were priced at $46 each, which valued the company at around $8.6 billion. However, when the shares started trading, their price went down, which made people unsure about the company’s future growth. Despite this, Birkenstock has come a long way since it started as a small shoe maker in the 18th century. It became popular among fashion-conscious people, especially after supermodel Kate Moss endorsed the brand in the 1990s. In recent years, Birkenstock has gained a lot of fans because of its comfortable shoes, collaborations with fashion designers, and celebrities wearing their products.

Birkenstock became even more popular when its shoes appeared in a Barbie movie. This led to a big increase in demand for their products. Last year, the company sold 30 million pairs of shoes, even though some people still think they don’t look very nice. Now that the company is going public, investors are wondering if Birkenstock can keep growing and if being a public company will help or hurt the brand. The IPO allowed a private equity firm called L Catterton to make almost $1.5 billion. However, Birkenstock still owns 80% of the company, which shows that they believe in its future success.

Some customers are worried that going public might make the quality of Birkenstock shoes worse and make the brand less special. But experts say that Birkenstock has done a good job of making people want their shoes by collaborating with fashion designers and making them in different colors and materials. Going public doesn’t guarantee success, but Birkenstock has already made some big changes, like getting new leaders and getting support from L Catterton. So, listing the company on the stock market seems like a natural next step.

Birkenstock is following in the footsteps of other shoe and fashion companies that have gone public. Some of them have done well, while others haven’t. For example, Crocs has grown a lot since it went public in 2006. Even though investors are being careful, many people think that Birkenstock will stay popular as long as their shoes stay comfortable. The success of the IPO and the company’s future growth will depend on how Birkenstock handles the challenges of being a public company.

Original news source: Birkenstock: Once-uncool sandal maker now worth billions (BBC)

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Group or Classroom Activities

Warm-up Activities:

– Charades
Instructions: Divide the class into small groups. Give each group a list of vocabulary words related to the article (e.g. Birkenstock, IPO, fashion, collaboration). One student from each group will act out one of the words without speaking, while the other students in the group try to guess what word it is.

– News Summary
Instructions: Have the students work in pairs. Each pair will take turns summarizing the main points of the article to their partner in their own words. Encourage them to include key details and use their own opinions or examples to support their summary.

– Opinion Poll
Instructions: Create a set of statements related to the article (e.g. “I would invest in Birkenstock”, “I think going public will hurt the brand”). Have the students walk around the classroom and ask their classmates for their opinions on each statement. They should record their classmates’ responses and be prepared to share the results with the class.

– Pros and Cons
Instructions: Divide the class into two groups. Assign one group the task of listing the pros of Birkenstock going public, and the other group the task of listing the cons. Give the groups a few minutes to brainstorm and then have them share their lists with the class. Encourage discussion and debate about the different points raised.

– Future Predictions
Instructions: Have the students work in pairs or small groups. Ask them to think about and discuss what they think will happen to Birkenstock in the future as a result of going public. They should consider factors such as customer perception, market competition, and company growth. Each group should present their predictions to the class and explain their reasoning.

Comprehension Questions:

1. What does it mean for a company to have an initial public offering (IPO)?
2. How much were the shares of Birkenstock priced at during their IPO?
3. Why did the price of Birkenstock shares go down when they started trading?
4. Who helped make Birkenstock popular in the 1990s?
5. What led to an increase in demand for Birkenstock products?
6. How many pairs of shoes did Birkenstock sell last year?
7. Why are some customers worried about Birkenstock going public?
8. What changes has Birkenstock made in preparation for going public?
Go to answers ⇩

Listen and Fill in the Gaps:

German sandal maker Birkenstock recently had its initial public offering (IPO) on Wall Street. This (1)______ that the (2)______ sold shares to the public for the first time. The shares were priced at $46 each, which valued the company at around $8.6 billion. However, when the shares (3)______ trading, their price went down, which made people unsure about the company’s (4)______ growth. Despite this, Birkenstock has come a long way since it started as a small shoe maker in the 18th century. It became popular among fashion-conscious people, especially after supermodel Kate Moss endorsed the brand in the 1990s. In recent years, Birkenstock has gained a lot of fans because of its comfortable shoes, collaborations with fashion (5)______, and celebrities wearing their products.

Birkenstock became even more popular when its shoes appeared in a Barbie movie. This led to a big increase in demand for their products. Last year, the company sold 30 million pairs of shoes, even though some people still (6)______ they don’t look very nice. Now that the company is going public, (7)______ are (8)______ if Birkenstock can keep growing and if being a public company will help or hurt the brand. The IPO allowed a private equity firm called L (9)______ to make almost $1.5 billion. However, Birkenstock still owns 80% of the company, which shows that they believe in its future success.

Some customers are worried that going public might make the quality of Birkenstock shoes (10)______ and make the brand less special. But experts say that Birkenstock has done a good job of making (11)______ want their shoes by collaborating with fashion designers and making them in different colors and materials. Going public doesn’t (12)______ success, but Birkenstock has already made some big changes, like getting new leaders and getting support from L Catterton. So, listing the company on the (13)______ market (14)______ like a natural next step.

Birkenstock is following in the footsteps of other shoe and (15)______ companies that have gone public. Some of them have done well, while others haven’t. For example, Crocs has (16)______ a lot since it went public in 2006. Even though investors are being careful, many people think that Birkenstock will stay popular as long as their shoes stay comfortable. The success of the IPO and the company’s future growth will depend on how Birkenstock handles the challenges of being a public company.
Go to answers ⇩

Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What is an initial public offering (IPO) and why is it important for a company?
2. How would you feel if you owned shares in a company and the share price went down after the IPO? Why?
3. Do you like Birkenstock shoes? Why or why not?
4. What do you think about fashion designers collaborating with shoe brands like Birkenstock? Why?
5. How do you think appearing in a Barbie movie helped increase the demand for Birkenstock shoes? Why?
6. Do you think going public will help or hurt the Birkenstock brand? Why or why not?
7. Why are some customers worried that going public might make the quality of Birkenstock shoes worse?
8. What do you think about Birkenstock collaborating with fashion designers to make their shoes in different colors and materials? Why?
9. How do you think getting new leaders and support from L Catterton will help Birkenstock as a public company? Why?
10. Can you think of any other shoe or fashion companies that have gone public? How have they performed?
11. How important is comfort when choosing a pair of shoes for you? Why?
12. Do you think Birkenstock will stay popular in the future? Why or why not?
13. How do you think being a public company will benefit or challenge Birkenstock’s future growth?
14. What challenges do you think Birkenstock might face as a public company? Why?
15. Why do you think some people still think Birkenstock shoes don’t look very nice, despite their popularity?

Individual Activities

Vocabulary Meanings:

Match each word to its meaning.

Words:
1. initial
2. public
3. shares
4. price
5. future
6. small
7. comfortable
8. company

Meanings:
(a) The first time something happens or is done
(b) What will happen or exist in the time after now
(c) The amount of money something costs
(d) Parts of a company that people can buy
(e) Available or known to everyone
(f) A business organization that sells goods or services
(g) Not big in size or amount
(h) Something that feels good to wear or use
Go to answers ⇩

Multiple Choice Questions:

1. What does it mean when a company has an initial public offering (IPO)?
(a) The company becomes a private company.
(b) The company goes bankrupt.
(c) The company merges with another company.
(d) The company sells shares to the public for the first time.

2. How much were Birkenstock shares priced at during their IPO?
(a) $8.6 billion each
(b) $30 million each
(c) $1.5 billion each
(d) $46 each

3. What made Birkenstock popular among fashion-conscious people in the 1990s?
(a) Appearing in a Barbie movie
(b) Endorsement by supermodel Kate Moss
(c) Collaborations with fashion designers
(d) Comfortable shoes

4. How many pairs of shoes did Birkenstock sell last year?
(a) 8.6 billion pairs
(b) 1.5 billion pairs
(c) 30 million pairs
(d) 46 million pairs

5. Who made almost $1.5 billion from Birkenstock’s IPO?
(a) Birkenstock
(b) Supermodel Kate Moss
(c) L Catterton
(d) Crocs

6. What are some concerns customers have about Birkenstock going public?
(a) The quality of the shoes might worsen.
(b) The brand might become less special.
(c) The shoes might not be comfortable anymore.
(d) All of the above.

7. How has Birkenstock made people want their shoes?
(a) Collaborating with fashion designers
(b) Making shoes in different colors and materials
(c) Selling shoes at a low price
(d) All of the above

8. What will determine the success of Birkenstock’s IPO and future growth?
(a) How many shares were sold during the IPO
(b) How Birkenstock handles the challenges of being a public company
(c) How much money L Catterton made from the IPO
(d) How many celebrities wear Birkenstock shoes

Go to answers ⇩

True or False Questions:

1. Some customers are delighted that going public might positively affect the quality and uniqueness of Birkenstock shoes, but experts believe the company has done a bad job of making people want their shoes through collaborations and variety in colors and materials.
2. The absence of Birkenstock shoes in a Barbie movie led to a small decrease in demand for their products.
3. The shares were priced at $46 each, valuing the company at around $8.6 billion.
4. However, when the shares started trading, their price went down, which made people unsure about the company’s future growth.
5. The failure of the IPO and the company’s future growth will depend on how Birkenstock handles the challenges of being a public company.
6. Birkenstock recently had its initial public offering (IPO) on Wall Street, which means they sold shares to the public for the first time.
7. Birkenstock gained a lot of fans in recent years due to its comfortable shoes, collaborations with fashion designers, and celebrities wearing their products.
8. Birkenstock started as a large shoe maker in the 18th century but has become unpopular among fashion-conscious people, especially after supermodel Kate Moss endorsed the brand in the 1990s.
Go to answers ⇩

Write a Summary:

Write a summary of this news article in two sentences.

Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. What does it mean for a company to have an initial public offering (IPO)?
2. Why did the price of Birkenstock shares go down when they started trading?
3. How did Birkenstock become popular among fashion-conscious people?
4. How did the appearance of Birkenstock shoes in a Barbie movie affect the company?
5. What are some concerns that customers have about Birkenstock going public?

Answers

Comprehension Question Answers:

1. What does it mean for a company to have an initial public offering (IPO)?
An IPO is when a company sells shares to the public for the first time.

2. How much were the shares of Birkenstock priced at during their IPO?
The shares were priced at $46 each.

3. Why did the price of Birkenstock shares go down when they started trading?
The price went down because people were unsure about the company’s future growth.

4. Who helped make Birkenstock popular in the 1990s?
Supermodel Kate Moss endorsed the brand in the 1990s, which helped make Birkenstock popular.

5. What led to an increase in demand for Birkenstock products?
Birkenstock’s shoes appearing in a Barbie movie led to an increase in demand for their products.

6. How many pairs of shoes did Birkenstock sell last year?
Birkenstock sold 30 million pairs of shoes last year.

7. Why are some customers worried about Birkenstock going public?
Some customers are worried that going public might make the quality of Birkenstock shoes worse and make the brand less special.

8. What changes has Birkenstock made in preparation for going public?
Birkenstock has gotten new leaders and received support from L Catterton in preparation for going public.
Go back to questions ⇧

Listen and Fill in the Gaps Answers:

(1) means
(2) company
(3) started
(4) future
(5) designers
(6) think
(7) investors
(8) wondering
(9) Catterton
(10) worse
(11) people
(12) guarantee
(13) stock
(14) seems
(15) fashion
(16) grown
Go back to questions ⇧

Vocabulary Meanings Answers:

1. initial
Answer: (a) The first time something happens or is done

2. public
Answer: (e) Available or known to everyone

3. shares
Answer: (d) Parts of a company that people can buy

4. price
Answer: (c) The amount of money something costs

5. future
Answer: (b) What will happen or exist in the time after now

6. small
Answer: (g) Not big in size or amount

7. comfortable
Answer: (h) Something that feels good to wear or use

8. company
Answer: (f) A business organization that sells goods or services
Go back to questions ⇧

Multiple Choice Answers:

1. What does it mean when a company has an initial public offering (IPO)?
Answer: (d) The company sells shares to the public for the first time.

2. How much were Birkenstock shares priced at during their IPO?
Answer: (d) $46 each

3. What made Birkenstock popular among fashion-conscious people in the 1990s?
Answer: (b) Endorsement by supermodel Kate Moss

4. How many pairs of shoes did Birkenstock sell last year?
Answer: (c) 30 million pairs

5. Who made almost $1.5 billion from Birkenstock’s IPO?
Answer: (c) L Catterton

6. What are some concerns customers have about Birkenstock going public?
Answer: (a) The quality of the shoes might worsen.

7. How has Birkenstock made people want their shoes?
Answer: (a) Collaborating with fashion designers

8. What will determine the success of Birkenstock’s IPO and future growth?
Answer: (b) How Birkenstock handles the challenges of being a public company
Go back to questions ⇧

True or False Answers:

1. Some customers are delighted that going public might positively affect the quality and uniqueness of Birkenstock shoes, but experts believe the company has done a bad job of making people want their shoes through collaborations and variety in colors and materials. (Answer: False)
2. The absence of Birkenstock shoes in a Barbie movie led to a small decrease in demand for their products. (Answer: False)
3. The shares were priced at $46 each, valuing the company at around $8.6 billion. (Answer: True)
4. However, when the shares started trading, their price went down, which made people unsure about the company’s future growth. (Answer: True)
5. The failure of the IPO and the company’s future growth will depend on how Birkenstock handles the challenges of being a public company. (Answer: False)
6. Birkenstock recently had its initial public offering (IPO) on Wall Street, which means they sold shares to the public for the first time. (Answer: True)
7. Birkenstock gained a lot of fans in recent years due to its comfortable shoes, collaborations with fashion designers, and celebrities wearing their products. (Answer: True)
8. Birkenstock started as a large shoe maker in the 18th century but has become unpopular among fashion-conscious people, especially after supermodel Kate Moss endorsed the brand in the 1990s. (Answer: False)
Go back to questions ⇧