Birkenstock stumbles at IPO

Birkenstock got off to a rocky start on the New York Stock Exchange. But the sandal manufacturer is determined to make its mark in the luxury goods industry while preserving its centuries-old heritage.

 

The recent IPO of Birkenstock, the famous German manufacturer of leather-soled sandals, got off to a rocky start on Wall Street. The stock, listed under the ticker symbol BIRK, began its trading run on Wednesday October 11 below its IPO price, causing concern among investors.

 

At the opening, Birkenstock shares were trading 11% below their IPO price, to the tune of $1.48 billion. This represents one of the worst performances for an IPO of a billion dollars or more in New York in over two years. Of the more than 300 US IPOs of this size over the past century, only nine have performed worse. However, the company retains significant growth potential.

 

At around 5:00 p.m. on Wednesday, Birkenstock’s share price stood at $41.72, down 9.78% on the IPO price of $46, which was expected to value the company at $8.6 billion.

 

This occurred despite a favorable backdrop for the brand, owned by luxury giant LVMH, with a recent high-profile appearance in the Barbie movie. In the last nine months, Birkenstock generated sales of $1.11 billion.

 

The family dynasty remains a shareholder in Birkenstock, whose origins date back to 1774. But by 2021, private equity firm L. Catterton and Financière Agache had acquired a majority stake in Birkenstock, with the backing of LVMH and its boss Bernard Arnault.

 

Global ambitions

 



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Featured photo : ©Birkenstock

Picture of Hugues Reydellet
Hugues Reydellet
Hugues Reydellet is a young and passionate journalist whose favorite subjects are economy, culture, gastronomy, but also cars, and sports. With a sharp pen and an insatiable curiosity, Hugues is constantly on the lookout for new hot information to report.

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