German shoe brand Birkenstock, known for its Arizona sandals, made its market debut Wednesday on the New York Stock Exchange.
The offering comes as the IPO market gradually begins to defrost after more than a year of stagnation. But it has remained choppy and uncertain. Multiple recent IPO filers did well in their first couple of days of trading, but those stocks have since fallen.at $30 per share last month. But after an initial 40% pop, it closed at $33.70 on its first day on the Nasdaq and is now trading below its opening share price.
Since L Catterton acquired its stake, sales have grown and Birkenstock's valuation has nearly doubled. Between fiscal 2020 and 2022, sales jumped from 728 million euros to 1.24 billion euros . Over that time, the company grew direct-to-consumer sales, strategically exited certain wholesale partnerships and focused on driving sales of items with higher price points.
The footwear and apparel sectors have been under pressure this year as consumers shift their spending from goods to services. But Birkenstock's growth, sustained profitability and cultural relevance after its recent cameo in the "Barbie" movie have sparked interest from investors.