{"id":71469,"date":"2023-10-11T14:11:27","date_gmt":"2023-10-11T18:11:27","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/birkenstock-stock-makes-its-public-trading-debut-shares-open-below-ipo-price\/"},"modified":"2023-10-11T14:11:30","modified_gmt":"2023-10-11T18:11:30","slug":"birkenstock-stock-makes-its-public-trading-debut-shares-open-below-ipo-price","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=71469","title":{"rendered":"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price."},"content":{"rendered":"
\n

Shares of
\n Birkenstock Holdings,<\/span>
\n the maker of cork-soled clogs, got off to a rocky stock market debut Wednesday.<\/p>\n

Shares of the company (ticker: BIRK) opened at $41 on the New York Stock Exchange on Wednesday afternoon, down 11% from its IPO price of $46 a share. The German shoe maker expected to price its IPO between $44 and $49 a share, according to documents filed last week. <\/p>\n

\n

Birkenstock raised $1.58 billion and at the opening price has a market value of $7.7 billion, not counting shares for employees and executives.<\/p>\n

Still, Birkenstock has a bigger market capitalization than peers
\n Allbirds
\n (BIRD),
\n Skechers
\n (SKX),
\n Crocs
\n (CROX), and
\n Steve Madden
\n (SHOO) and its valuation is about double the roughly $4.3 billion private-equity firm L Catterton paid to acquire the company in early 2021.<\/p>\n

The lofty valuation reflects the company\u2019s success over the past few years, says Neil Saunders, managing director and retail analyst at research firm GlobalData. Birkenstock\u2019s revenue grew from \u20ac727.9\u00a0million ($770.9 million) in fiscal 2020 to\u00a0\u20ac1.24\u00a0billion ($1.3 billion) in fiscal 2022. Net profit rose by about \u20ac86 million ($91 million) within that time frame. <\/p>\n

\u201cThere has been some good levels of growth there, and I think there\u2019s a degree of confidence around the brand as well,\u201d Saunders says. \u201cIt looks to be quite a strong IPO.\u201d<\/p>\n

Some, however, aren\u2019t convinced. To justify a valuation of $8 billion, Birkenstock would need to generate more than $3.8 billion in annual revenue\u2014or about three times its fiscal 2022 revenue, David Trainer, CEO at investment research firm New Constructs, says. <\/p>\n

\u201cWe don\u2019t see this happening anytime soon, if ever,\u201d he wrote in a research note last week. \u201cBIRK looks more than fully valued and does not provide investors much upside potential.\u201d<\/p>\n

Looming over Birkenstock\u2019s public debut is the specter of other recent IPOs whose stocks have dropped after a first-day pop. Shares of chip designer
\n Arm Holdings
\n (ARM) have fallen below their opening trade after an impressive debut. Shares of delivery platform
\n Maplebear
\n (CART), Instacart\u2019s holding company, have retreated below their IPO price. And stock in fast-casual Mediterranean chain
\n Cava Group
\n (CAVA), which went public over the summer, is trading well below its opening price. Perhaps most comparable, shares of fellow footwear company Allbirds now trade for under a dollar despite opening at $21.21 in November 2021. Allbirds is now valued at roughly $144 million. <\/p>\n

The likelihood of Birkenstock following a similar path to Allbirds is \u201cvery low,\u201d Alex Smith, global sector lead at research firm\u00a0Third Bridge, says. Unlike Allbirds, which is a relatively new company, Birkenstock has a loyal customer base and a \u201crich history\u201d that spans 250 years. <\/p>\n

GlobalData\u2019s Saunders echoes that sentiment. The IPOs that are now struggling\u2014such as Instacart\u2014carry a higher degree of risk given that their business models are still relatively new, he says. Birkenstock, in turn, is \u201cvery vanilla\u201d in the way it operates, he adds, employing a classic retail model the market is already familiar with. <\/p>\n

\u201cIn these times, investors want to go into safe haven, and Birkenstock is one of those safe havens,\u201d Saunders says. <\/p>\n

Birkenstock also has several backers. L Catterton\u2014which merged with the private equity arm of
\n LVMH Mo\u00ebt Hennessy Louis Vuitton
\n (LVMHF) in 2016\u2014will remain the company\u2019s majority owner after the offering. The company has also secured financing offers from several investors, including Financi\u00e8re Agache, Durable Capital Partners, and Norges Bank Investment Management, according to a filing.<\/p>\n

Write to Sabrina Escobar at sabrina.escobar@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Birkenstock Holdings, the maker of cork-soled clogs, got off to a rocky stock market debut Wednesday. Shares of the company (ticker: BIRK) opened at $41 on the New York Stock Exchange on Wednesday afternoon, down 11% from its IPO price of $46 a share. The German shoe maker expected to price its IPO […]<\/p>\n","protected":false},"author":1,"featured_media":71470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-71469","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nBirkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Shares of Birkenstock Holdings, the maker of cork-soled clogs, got off to a rocky stock market debut Wednesday. Shares of the company (ticker: BIRK)\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=71469\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Shares of Birkenstock Holdings, the maker of cork-soled clogs, got off to a rocky stock market debut Wednesday. Shares of the company (ticker: BIRK)\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=71469\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-11T18:11:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-11T18:11:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1697047888_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=71469#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=71469\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price.\",\"datePublished\":\"2023-10-11T18:11:27+00:00\",\"dateModified\":\"2023-10-11T18:11:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=71469\"},\"wordCount\":585,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=71469#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=71469\",\"url\":\"https:\/\/ifintechworld.com\/?p=71469\",\"name\":\"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-10-11T18:11:27+00:00\",\"dateModified\":\"2023-10-11T18:11:30+00:00\",\"description\":\"Shares of Birkenstock Holdings, the maker of cork-soled clogs, got off to a rocky stock market debut Wednesday. Shares of the company (ticker: BIRK)\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=71469#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=71469\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=71469#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price. | iFintechWorld","description":"Shares of Birkenstock Holdings, the maker of cork-soled clogs, got off to a rocky stock market debut Wednesday. Shares of the company (ticker: BIRK)","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=71469","og_locale":"en_US","og_type":"article","og_title":"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price. | iFintechWorld","og_description":"Shares of Birkenstock Holdings, the maker of cork-soled clogs, got off to a rocky stock market debut Wednesday. Shares of the company (ticker: BIRK)","og_url":"https:\/\/ifintechworld.com\/?p=71469","og_site_name":"iFintechWorld","article_published_time":"2023-10-11T18:11:27+00:00","article_modified_time":"2023-10-11T18:11:30+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1697047888_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=71469#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=71469"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price.","datePublished":"2023-10-11T18:11:27+00:00","dateModified":"2023-10-11T18:11:30+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=71469"},"wordCount":585,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=71469#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=71469","url":"https:\/\/ifintechworld.com\/?p=71469","name":"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-10-11T18:11:27+00:00","dateModified":"2023-10-11T18:11:30+00:00","description":"Shares of Birkenstock Holdings, the maker of cork-soled clogs, got off to a rocky stock market debut Wednesday. Shares of the company (ticker: BIRK)","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=71469#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=71469"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=71469#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Birkenstock Stock Makes Its Public Trading Debut. Shares Open Below IPO Price."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/71469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=71469"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/71469\/revisions"}],"predecessor-version":[{"id":71471,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/71469\/revisions\/71471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/71470"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=71469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=71469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=71469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}