Birkenstock: The Rocky Road to Market Stability

One year after a disappointing debut on the US stock market, the German sandal manufacturer Birkenstock is now experiencing a positive trend in its share price. On Thursday, the shares closed just below the 50-dollar mark, slightly above the issue price of 46 dollars and significantly above the interim lows of around 36 dollars. In October 2023, Birkenstock cautiously set the issue price in the middle of the previously agreed range of 44 to 49 dollars. Initial enthusiasm for the IPO was dampened by investor concerns about consumer behavior. On the first trading day, the share price fell almost 13% below the issue price and remained weak initially. After the initial slump, the price recovered over the course of 2024 to over 60 dollars in August. Nevertheless, the quarterly figures disappointed the high expectations of analysts. Out of the approximately 1.5 billion dollars in proceeds from the IPO, about two-thirds went to major investor L Catterton, which is associated with the luxury group LVMH and its billionaire CEO Bernard Arnault. Birkenstock used its share of the proceeds to reduce debt. After the weak stock market start, company CEO Oliver Reichert emphasized that Birkenstock was focused on sustainable, long-term growth. The company, which traces its origins back to 1774 in the German village of Langen-Bergheim, views itself as the inventor of the comfortable "footbed." While the traditional cork sandals were once known for their hippie image, Birkenstock has increasingly become a sought-after fashion accessory, partly through collaborations with high-profile brands like Dior and Manolo Blahnik.