Shares in Birkenstock fell 12.6% after landing on the US stock market, valuing the German shoemaker at $7.5bn as investors bet there was less mileage in consumer demand for its cork-soled sandals, which have, where it is using the symbol “BIRK”. That figure was in the middle of the $44 to $49 guidance provided last week and valued the company at $8.6bn .
Birkenstock executives, including chief executive Oliver Reichert, waved the shoes aloft as they launched the stock market float on Wall Street earlier on Wednesday. With a customer base that is 72% female, Birkenstock is also benefiting from a change in mindset among young women who no longer subscribe to high heels and delicate footwear as a feminine ideal.
As part of the company’s sales pitch to investors, Birkenstock’s chief executive, Oliver Reichert - who became the first non-family member to run it when he took the helm in 2013 – set out plans to sell other types of shoes, including clogs, trainers, shoes and boots, as it looks to end its reliance on sandals.