Birkenstock share price slides 12 per cent in disappointing debut
Birkenstock ended its first day of trade as a listed company down 12 per cent, making the frumpy shoes’ highly anticipated debut to the US stock market the worst stock market float in two years, analysts claim.
Shares in the German sandal maker started trading at $41 (£33) a share, below its IPO price of $46, ending the session at $40.20.
It’s a disappointing start for a brand that has grown in popularity in recent years, even playing a supporting role in the summer blockbuster movie Barbie.
Victoria Scholar, head of investment at Interactive Investor, said that Birkenstock has struggled to translate its Barbie bounce in “sales into bullish price action on day one of trade”.
She explained: “It has floated at a challenging time for equities with higher for longer interest rates sending bond yields higher lately and sparking nervousness across stock markets.”
“That makes it the worst US stock market flotation in nearly two years.”
The company’s weak performance comes after a number of high profile debuts on the US exchange including Arm Holdings and grocery delivery app Instacart.
Scholar added: “IPO activity has been in the doldrums over the last year and a half with hopes that a recent flurry of flotations would breathe life back into the market.”
“However disappointing performances for Arm and Birkenstock could deter more private companies from pursuing the IPO exit route at the time.”
Birkenstock remains majority owned by Catterton, a US private equity firm backed by French billionaire Bernard Arnault’s LVMH luxury behemoth.