One year after a disappointing stock market debut in the United States, German sandal manufacturer Birkenstock on Thursday reported a positive share price balance.
The share prices closed at just under $50 on Thursday, above the issue price of $46 and well above the interim lows of around $36.
In October 2023, Birkenstock set the issue price at a cautious $46 per share – right in the middle of the previously agreed range of $44 to $49.
However, enthusiasm for the company’s initial public offering (IPO) was dampened by investor concerns about consumer spending. On the first day of trading, the share price slipped almost 13% below the issue price and initially remained weak.
After the initial downturn, the price recovered in the course of 2024 to more than $60 in August. But then quarterly figures disappointed analysts’ high expectations.
The Birkenstock IPO raised almost $1.5 billion. Around two-thirds of this went to major owner L Catterton, who is linked to luxury conglomerate LVMH and its billionaire boss Bernard Arnault.
Birkenstock used its share of the IPO proceeds to reduce debt.
After the weak start on the stock market, company boss Oliver Reichert emphasized that Birkenstock is focused on sustainable long-term growth.
Birkenstock says its origins go back to the German village of Langen-Bergheim in 1774, when the shoemaker Johannes Birkenstock laid the foundation for “a shoemaker dynasty.”
The company, now headquartered in the western town of Linz, calls itself the inventor of the comfy “footbed.”
The company’s traditional cork-soled sandals were once notorious for their hippie image.
But Birkenstock has increasingly developed into a sought-after fashion accessory, including through collaborations with high-end brands such as Dior and Manolo Blahnik.
