The flügelhorns were out to trumpet the German comfy shoe giant’s debut on the New York Stock Exchange – before its share price promptly plummeted… The company priced its shares at US$46 and was confident investors would agree after a spike in sales of its cork-soled sandals since the pandemic years, as well as a recent cameo in the blockbuster Barbie movie. That meant it launched with an $8.6 billion valuation. But by the end of the day, Birkenstock’s share price had fallen 12.6% to $40.20/share, sending its valuation down to $7.5 billion. It’s the sort of pain anyone who’s broken in a new pair of Arizonas would know… It’s a similar story to other big-name brands like Dr Martens that have gone public in recent years – analysts say Birkenstock overestimated its value in a slowing market facing a gloomy economic outlook and declining consumer confidence. Just as Crocs is pivoting to cowboy boots…
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