Birkenstock, the iconic German sandal maker, is experiencing a notable uptick in its shares, reaching the initial public offering (IPO) price for the first time. This surge follows a robust holiday shopping season, with U.S. consumers displaying significant spending during Thanksgiving, Black Friday, and Cyber Monday, leading to record-breaking retail sales.
Initially opening at $41 on October 11, Birkenstock’s shares had been trading below the IPO price of $46, dropping to a low of $35.83 shortly after its market debut. However, a recent surge, particularly a more than 9% jump on Tuesday, has propelled the stock’s value, reaching as high as $46.60 on Wednesday.
While the lackluster market debuts of Birkenstock and other anticipated offerings have tempered expectations for a resurgence in the U.S. IPO market, the company’s recent positive momentum suggests a potential turnaround.
Analysts covering Birkenstock, totaling 17, have a median price target of $47.21, and the current recommendation is «buy,» according to data from LSEG.
Despite its recent success, Birkenstock is experiencing significant short interest, with approximately 5.71 million shares valued at around $259 million being shorted, as reported by data and analytics firm Ortex. The IPO involved the sale of about 32.3 million shares.
Owned by U.S. private equity firm L Catterton, with backing from French billionaire Bernard Arnault and his luxury goods empire Louis Vuitton Moet Hennessy, Birkenstock’s resurgence in the market underscores the brand’s enduring appeal and potential for sustained growth.
