Birkenstock stumbles in US market debut

The news: German premium footwear brand Birkenstock has made an underwhelming Wall Street debut that signalled investors remain cautious about new listings.

The numbers: Shares of the 250-year-old German sandal maker started trading at USD41, after its IPO was priced at USD46 in an offering that raised USD1.48 billion ($2.31 billion). The stock closed at USD40.20, down 12.61%.

The context: At its closing share price, Birkenstock had a market capitalisation of over USD8 billion, still double the USD4.35 billion at which US private equity firm L Catterton, backed by French billionaire Bernard Arnault and his luxury goods empire LVMH acquired a majority stake in the shoemaker in 2021. L Catteron continues to own nearly 83% of Birkenstock. But the stock’s weak performance comes weeks after the high-profile market debuts of chip designer Arm Holdings, grocery delivery app Instacart and marketing automation platform Klaviyo, all of whose shares have mostly fallen since their listings, indicating weak investor demand.