Footwear maker Birkenstock made a lackluster stock market debut Wednesday, after a billion-dollar initial public offering. Shoe stocks — one of last year's hot tickets — have generally fallen into disrepair.
BIRK stock opened at $41 on the New York Stock Exchange. It closed at 40.06, down 12.9% from Tuesday's offer price of $46 per share.
The Birkenstock IPO raised about $1.5 billion, giving the company an initial valuation of just under $9 billion. Based on the Wednesday opening price, Birkenstock would now be valued at around $8 billion.
At $1.5 billion, the Birkenstock IPO is the largest from the consumer discretionary sector since EV maker Rivian in 2021, according to the IPO experts at Renaissance Capital.
Lackluster Debut For BIRK Stock
The Birkenstock brand, founded in 1774, continues to grow in popularity. With fashion-forward designs, the shoe maker once branded as a grungy hippie sandal, has turned into a fashion must-have.
Now cork-soled Birkenstock sandals regularly appear on the feet of celebrities, hospital workers and runway models alike. They were famously worn by deceased Apple co-founder Steve Jobs.
This summer, a pair of pink Arizona Birks were spotted in the blockbuster "Barbie" movie, fueling a sales spike.
Birkenstock sold 30 million pairs of shoes in 2022, according to a recent Birkenstock IPO filing.
It grew revenue at a 20% compound annual rate between fiscal 2014 and 2022. The company is both growing and profitable, with gross profit margin expanding to 60% in fiscal 2022 from 55% in 2020.
Birkenstock IPO, Shoe Stocks
Birkenstock joined an IPO market that has been improving after a poor 2022.
Some of the big debuts in 2023 include Kenvue, Arm Holdings and Instacart.
ARM stock is forming an IPO base with a 69 buy point, the MarketSmith chart shows. Shares lost to 54.68 on the stock market today.
While the IPO market is on the mend, a few shoe stocks have wilted after a generally strong 2022.
Both Crocs and Nike are trying to come off recent lows. Uggs and Hoka owner Deckers Outdoor and Skechers have fared better but remain 10%-13% off highs.
Sneaker maker On Holding sits nearly 30% below its 52-week high.
Deck stock is shaping a flat base with a 568.47 buy point. Shares edged up 0.1% to 509.05 Wednesday.
