- 10 biggest global shoe brands have seen collective share price gain of 387% over last decade vs 155% gains of S&P 500
- Shoe brands Deckers (685%) and the once unloved Crocs (546%) lead the pack
- Some of the more recent footwear IPOs have faltered including Dr Martens and Allbirds
For any retail investors considering Birkenstock ahead of next week’s blockbuster IPO, analysis from eToro can reveal that investing in the world’s biggest shoe brands can be a lucrative pastime.
The trading and investing platform looked at the share price performance of the 10 biggest shoe-associated companies (See Table 1) in the world and found that collectively, their share price had jumped by 387% over the last decade (based on an equal weighted index). This is more than twice the 10-year returns from the S&P 500 (155%).
However recent IPOs of popular footwear firms have fallen flat – with Allbirds down 96% since its 2021 IPO and Dr Martens, also listing in 2021, down 64%. Swiss shoe brand On Holding, which floated in 2021, has fared better, down 27% since its flotation, but up 60% this year.
Birkenstock is expected to list next week and is targeting a $10billion valuation, which would make it the fifth largest footwear brand in the world by market capitalization.
Ben Laidler, Global Markets Strategist for eToro, eToro, said: “The Birkenstock brand has almost become synonymous with Germany and there is a lot of excitement over this IPO. Our research suggests this hype could be justified as the world’s biggest shoe brands have historically rewarded investors. However, the data also makes the case for a long-term focus and diversification, with some brands only generating big returns years after their listing, and some of the recent shoe offerings having struggled.”
The world’s most valuable shoe manufacturer Nike has seen its share price increase by 160% over the last 10 years with a more modest gain of 12% over the last five years. German trainer giants Adidas and Puma have also both seen sizable share price jumps over the last decade, rising 105% and 171% respectively.
Perhaps more noteworthy though for investors weighing up the IPO of German cult brand Birkenstock is the share price performance of Crocs. Similarly unloved for years and viewed as unfashionable by some, the popularity of Crocs has exploded in recent years, and the company’s share price is up 318% in just five years, and 546% over a decade, with only Deckers outperforming (685%).
Across the ten biggest shoe-associated brands, only VF Corporation, whose labels include Timberland and Vans, has seen a 10-year share price fall, dropping 65%.
Laidler adds: “The stories of Birkenstocks and Crocs draw natural comparisons with both brands moving from the fringes of fashion to the mainstream in recent years and Birkenstock will certainly hope that they can enjoy the same share price trajectory of Crocs once they list. However, the picture isn’t all rosy in this industry and consumers often fickle. As our research shows, certain popular brands such as Dr Martens and Allbirds have failed to live up to expectations after floating.”
Table 1: Shows 10 year share price performance of ten biggest global shoe brands
| Company | Year of flotation | Market cap (US$ billions) | Share price performance year-to-date | Share price performance 5 years | Share price performance 10 years |
| Nike | 1980 | 144.7 | -19% | 12% | 160% |
| Adidas | 1995 | 30.1 | 29% | -23% | 105% |
| Deckers | 1993 | 13.5 | 30% | 344% | 685% |
| Li Ning | 2004 | 10.7 | -51% | 345% | 495% |
| Puma | 1986 | 9.3 | 6% | 37% | 171% |
| On holding | 2021 | 8.3 | 52% | N/A | N/A |
| Skechers | 1999 | 7.6 | 17% | 79% | 372% |
| VF Corporation | 1951 | 6.4 | –40% | -81% | -65% |
| Asics | 1999 | 6.1 | 77% | 209% | 205% |
| Crocs | 2006 | 5.4 | -19% | 318% | 546% |
| eToro Shoe brand basket | N/A | N/A | 3% | 124% | 387% |
| S&P 500 | N/A | N/A | 12% | 47% | 155% |
Source: Refinitiv as of October 2nd 2023
*Past performance is not an indication of future results
**ENDS**
Notes to editors
About this data
Share price data was taken from Refinitiv as of October 2, 2023
The selection of the stocks in the shoe basket was based on the 10 biggest publicly listed footwear stocks by market cap, taken from the following resource.
https://companiesmarketcap.com/footwear/largest-companies-by-market-cap/
The shoe basket is equally weighted amongst the ten stocks.
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