I am not telling you what to do for investments, but as a loyal Birkenstocks for hiking fan I wanted to share their attempt to raise capital to expand, and the not-so-great Birkenstock IPO.
Maybe it will make it easier to score a pair of Boston clogs?
Birkenstock, the iconic German sandal maker, made its debut on the New York Stock Exchange (NYSE) on October 11, 2023, with an initial public offering (IPO) of its stock. The company, known for its comfortable and orthopedic footwear, set the IPO price at $46 per share, valuing the company at $8.64 billion.
However, the stock opened for trade at $41 per share, below the expected range of $44 to $49. Unfortunately, the enthusiasm from traders and the iconic opening bell ceremony did not translate into investor confidence, as the stock closed the day down 12.6% at $40.20.
Birkenstock IPO Overview
Birkenstock Holding Ltd. sold approximately 10.8 million shares in the offering, raising around $495 million, while existing shareholders sold an additional 21.5 million shares. Despite the company’s long-standing reputation and cult following, the stock’s performance on its first day of trading fell short of expectations.
In comparison to other IPOs this year, which saw an average first-day return of 20%, Birkenstock’s stock struggled to gain traction.
“It’s a busted IPO. First day down more than 12%. I think there’s a bigger story here. The IPO market has become the last stop on the pump and dump train.”Prof G Markets Podcast
Founded in Germany in 1774 by Johann Adam Birkenstock, the company has faced criticism for its sandals being considered unfashionable. However, Birkenstock has managed to build a strong global fanbase of millions of consumers who appreciate the brand’s comfort and quality. The sandals even received a mention in the popular movie “Barbie,” further boosting their visibility.
Birkenstock’s IPO attracted attention from various stakeholders in the fashion industry. Notable figures present at the NYSE during the IPO included Birkenstock CEO Oliver Reichert, L. Catterton co-CEO Michael Chu, and Alexandre Arnault from luxury conglomerate LVMH. The involvement of these industry leaders highlights the significance of Birkenstock’s entry into the public markets.
While the IPO did not meet expectations on its first day of trading, Birkenstock remains a well-known and respected brand in the footwear industry.
The company’s commitment to foot health and its collaborations with designers such as Valentino and Rick Owens have further elevated its status.
Despite the initial stock performance, Birkenstock’s long-standing reputation and dedicated customer base position it well for continued success in the global footwear market.
Should You Buy Birkenstock…Stock …Maybe Not?
Birkenstock, a German premium footwear company, recently launched an initial public offering (IPO) in the United States. The IPO priced at $46 per share, which is near the midpoint of its anticipated range of $44 to $49, and raised about $1.48 billion based on 32.3 million shares sold. The company is now valued at about $9.3 billion on a fully diluted basis.
Investors are wondering whether they should buy Birkenstock stock. While the company is a well-known brand with a loyal following, there are some factors to consider before making a decision:
- Market Conditions: The IPO market has been volatile in recent years, and Birkenstock’s IPO has not been immune to this. Shares are down 13% since the IPO, which may be a cause for concern for some investors.
- Competition: Birkenstock faces competition from other premium footwear brands, such as Nike, Adidas, and Puma. It’s important to consider the company’s ability to compete in this crowded market.
- Financials: It’s important to review the company’s financials before making an investment decision. While Birkenstock has a loyal following, it’s important to ensure that the company’s financials are strong and that there is potential for growth in the future.
With how hard it has been to buy Boston clogs, maybe this will be a good thing for them to be infused with cash.
Famous People Wearing Birkenstocks
Birkenstock sandals have been a favorite among celebrities and fashion icons for years, even before the Birkenstock IPO. The brand’s comfortable and eco-friendly design has made it a popular choice among those who prioritize comfort and sustainability. Here are some famous people who have been spotted wearing Birkenstocks:
- Kendall Jenner: The supermodel has been seen wearing Birkenstock Arizona sandals on multiple occasions.
- Gigi Hadid: The model has been spotted wearing Birkenstock Madrid sandals while out and about.
- Leonardo DiCaprio: The actor is known for his dedication to environmental causes, and he has been seen wearing Birkenstock sandals that are made with sustainable materials.
- Mary-Kate and Ashley Olsen: The fashion icons have been known to wear Birkenstock sandals with their signature bohemian style.
These are just a few examples of the many celebrities who have embraced the Birkenstock trend. We will see how this Birkenstock IPO changes their production.
More Shoe Insights
Author profile: Morgan Fielder is a Doctor of Physical Therapy and passionate hiker who believes in exploring the world on foot with good food. Follow her journey as she shares science-based hiking tips and advocates for sustainable tourism.