• Birkenstock debuted on the New York Stock Exchange this month.
• The German shoe brand's IPO missed the mark, but analysts say the company has upside.
• I visited the Birkenstock store in Soho to see how the company is approaching its retail footprint.

Earlier this month, Birkenstock's highly-anticipated IPO took an unexpected turn.

Initially the German shoe brand expected shares to reach $46 at an estimated $8 billion valuation, but shares traded at just $41, making it one of the worst debuts for a billion-dollar company in a decade.

Many were surprised by the lackluster debut because the company is all about consistency, dependability, and function. In other words, it's as safe a bet as fashion brands come. In its initial filing, the company reported $1.3 billion in 2022 revenue. The company also said that 90% of customers come through unpaid channels, such as word-of-mouth, and the average customer owns three pairs of Birkenstocks.

For nearly 250 years, craftsmanship and comfort have been the cornerstones of Birkenstock's success. Fads come and go, but Birkenstock found a market for shoes people can grow old with. If you need proof that the shoe can weather a lifetime of downturns, just take a look at Steve Job's worn-but-still-wearable Birks that sold at auction for $200,000.

Meanwhile, it doesn't seem Birkenstock is anywhere on GenZ's radar — an indication that perhaps the brand's generational reach is limited to the 30-and-above crowd. In a recent report by investment bank Piper Sandler that ranked the top brands among American teens, Birkenstock was nowhere to be found. In its initial filing, Birkenstock reported that 12% of its consumer base is Gen Z, while 31% is millennial, and 27% is Gen X.

But capturing the current youth culture isn't the only way to paint a bright future. Analysts say Birkenstock's outlook ultimately comes down to the macroeconomic picture. Although it isn't a designer brand, Birkenstock falls in the luxury category with prices ranging from $50 to $475. While that's on the lower-end compared to a pair of $890 Gucci loafers, it could still be a steep price for consumers who are tightening their discretionary spending.

A heritage brand like Birkenstock sits well among footwear companies because customers are more likely to spend on brands they trust when their spending springs back, Jessica Ramirez of Jane Hali & Associates told Bloomberg.

I visited Birkenstock's Soho store to see how the company is positioning its retail locations.

Birkenstock has a store in Soho

The Birkenstock store is located at 120 Spring Street in the bustling, downtown shopping neighborhood of Soho.

The store is nestled between a few other shoe stores

Stuart Weitzman was right next door and Adidas was across the street.

Inside, the store had lots of geometric shelves and intriguing displays.

Since shoes don't take up as much space as clothing, I could tell the merchandising team used the geometric build outs and shelves to fill it out and make the store more intriguing than your typical shoe racks.

The store also used materials like cork and wool as a nod to the materials in its shoes

Some of the shelves and displays were made out of cork.

The center of the store celebrated the company's history

Above a bench where customers tried on shoes, there hung framed advertisements and mementos of Birkenstock's history.

One box displayed a vintage pair of Birkenstocks

These strappy suede sandals were from 1977.

It was clear that Birkenstock has evolved a lot since then.

This pair in particular shows how the brand has catered to a more fashion-forward consumer, without sacrificing the comfort at Birkenstock's core. The thick straps, forest green suede, and large gold buckles are a more contemporary approach to the brand's classic sandals.

While some shoes were on the uglier side...

This shoe is like a close-heel version of the Boston clog and has shearling inside.

The brand has expanded its styles with new silhouettes and fun materials

Birkenstock has expanded its offerings to the fashion set by creating variations of its classic styles with materials like shearling.

Towards the back of the store, there are more walls of shoes and an area to try them on

The back area was focused on women's and children's styles.

Many of the shoes were displayed in box structures with direct lighting

These structures made the shoes feel like they were on display in a gallery — a clear effort to position Birkenstock's products as a luxury item that is meant to be visually appreciated just as much as it's worn.

Classic styles were displayed on more traditional shelves

While the more trendy styles were placed at the front and middle of the store, the classic styles and older collections were in the back. Seeing that the store is in the fashionable neighborhood of Soho, it makes sense that the brand would place the newest and flashiest styles where they'll be seen first.

There was a corner for children's shoes

The children's shoes were easy to miss because they were placed on a small shelving unit in a corner where the lighting was dim.

More trendy styles had a display on the back wall

This display broke up the shelves and highlighted more styles that have platforms, shearling, and large buckles.

I was fond of these platform sandals

I liked how Birkenstock added a trendy item — a thick, white contrast platform — to one of its classic styles. The Arizona Chunky felt like a fresh update, but didn't take away from the brand's signature design.

Meanwhile, I didn't quite understand the more — daring — styles.

I laughed at these shearling-covered sandals because they looked like rabbit feet. They were so fluffy, I could barely see the gold buckles. I imagined how quickly they would turn grey or brown wearing them on the city streets. But perhaps they'd make a comfy house slipper.

I was surprised to find how many non-sandal shoes the brand carries, like this suede sneaker.

A sales associate told me the sneaker is made with a suede corduroy. I also noticed it has a sliver of cork visible in the back — a nod to Birkenstock's cork soles.

And this combat-style boot

I had always thought of the brand as a maker of sandals and clogs, so I did not expect Birkenstock to have boots.

I also didn't realize Birkenstock made heels

Once again, I was surprised to find a wide range of wedge-heel shoes. When I asked a sales associate what the word "papillio" meant, she told me that's what Birkenstock calls it's range of heels for women. Papillio includes both the platform and wedge shoes.

Another heel stood out to me

To me, this shoe was what the Boston clog would look like with a wedge-heel and a slightly more sophisticated buckle.

A table at the front of the store displayed a limited-edition collection

These shoes were made in collaboration with the luxury fabric brand Tekla. Each pair is made with Cazador suede and shearling shearling and cost between $475 and $495.

A foot imprint on the wall led to the stairs to the mens section

The foot imprint was modeled after Birkenstock's patented sole.

I made my way to the second level

A floor-to-ceiling mirror covered the wall against the staircase.

Upstairs, the mens section felt like its own nook

The second floor was dedicated to mens' shoes.

Bookshelves, furniture, and a screen gave the area a living-room vibe

This floor had a little more space to walk around than the first level, but it also wasn't as busy.

Lanterns hang from the high ceilings

Cube lanterns and greenery made use of the high ceilings.

The men's section also had sneakers

Similar to the pair I saw on the first floor, this slip-on sneaker comes in a mustard yellow suede corduroy and has the exposed cork in the back of the sole.

Birkenstock even has its own take on the Croc

The Super-Birk is a simple clog made from polyurethane. It seems to be the brand's take on a Croc, which have been another popular "ugly" shoe.

I left the store feeling enlightened

Birkenstock's Soho store feels like a place of discovery, where people who are curious about the brand, but maybe have never purchased a pair, can really get a sense of its offerings.

I've never been inside a Birkenstock store before — the one pair I own, I purchased online. When you're shopping online, you often scroll or search past so many products, it's easy to miss everything a brand has to offer.

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