(Recasts headline and first paragraph, adds analyst comment and closing price, data on IPOs)
By Manya Saini, Niket Nishant and Chibuike Oguh
Oct 11 (Reuters) – Birkenstock's stock ended more than 12% below its initial public offering (IPO) price on Wednesday in an underwhelming Wall Street debut that signaled investors remain cautious about new listings.
Shares of the 250-year-old German sandal maker started trading at $41 after the IPO had priced at $46. That offering raised $1.48 billion, priced at the midpoint of the indicated range of $44 and $49 on Tuesday. The stock closed at $40.20, down 12.61%.
The 11% decline from Birkenstock's IPO price on Tuesday to its opening price on Wednesday marks the worst debut by a company worth over $1 billion in nearly two years, according to LSEG data.
Birkenstock's weak performance comes weeks after the high-profile market debuts of chip designer Arm Holdings , grocery delivery app Instacart and marketing automation platform Klaviyo. The shares of those companies have mostly fallen since their listings, indicating weak investor demand.
"What this shows is that the valuations that they are putting (on) these companies make absolutely zero sense, particularly when you're in a down market when there's so many other bargain opportunities available," said Thomas Hayes, chairman at Great Hill Capital in New York.
"If you're putting out new paper that no one would pay for existing companies, what you're going to see is that after the initial pop, you're going to see a drop," Hayes added.
At its closing share price on Wednesday, Birkenstock had a market capitalization of more than $8 billion. That is still double the $4.35 billion at which L Catterton, the U.S. private equity firm backed by French billionaire Bernard Arnault and his luxury goods empire Louis Vuitton Moet Hennessy, paid to acquire a majority stake in the shoemaker in 2021. L Catteron will continue to own nearly 83% of Birkenstock following its market debut, which coincides with a sharp drop in LVMH's shares on Wednesday following slower third quarter sales growth. Arnault's son, Alexandre, will join Birkenstock's board.
Founded in 1774 in the German village of Langen-Bergheim, the company was run by the Birkenstock family for six generations until they sold a majority stake to L Catterton.
Birkenstock has partnership deals with luxury fashion brands, including Dior, Stüssy, Manolo Blahnik and Rick Owens.
The company had disclosed a 21% jump in revenue to 1.12 billion euros ($1.19 billion) for the nine-month period ended June 30. Its net profit for the same period, however, fell 20% to 103.3 million euros.
Birkenstock gained widespread attention after Australian actress Margot Robbie wore a pair of pink Birkenstocks in the final scene of the hit movie, "Barbie," which was released this summer. ($1 = 0.9431 euro)
(Reporting by Manya Saini, Niket Nishant in Bengaluru and Chibuike Oguh and Noel Randewich in Oakland, Calif.; Editing by Anil D'Silva and Jonathan Oatis)
Shares of German sandal maker, Birkenstock, will make their debut under the 'BIRK' ticker on the New York Stock Exchange today.
LVMH has provided backing for Birkenstock through a private equity firm. The popular sandal maker began trading on the New York Stock Exchange debut on Wednesday opening below its offering price.
The outlook for CSCO stock depends on trends for cloud computing, plus corporate and telecom networks amid the shift to remote work.
(Bloomberg) — Birkenstock’s seemingly ubiquitous $130 leather sandals have helped the German family behind the brand build one of the biggest footwear fortunes on the planet. Most Read from BloombergIsrael Latest: Hamas Leaders Targeted as Ground War LoomsApollo CEO Marc Rowan Demands UPenn Leaders Quit Over ‘Antisemitism’Goldman Sues Malaysia as 1MDB Settlement Dispute EscalatesIMF Caught Off Guard as China Strikes Sri Lanka Debt DealHouse Republicans Pick Scalise as Speaker Nominee in Trump S
Citigroup Inc said on Thursday that its board of directors will meet in Singapore for the first time since 2011 as a show of commitment to the city state. The meeting will be held next week, and Citi's board and executive management team will meet with clients, staff and regulators during their visit to the Asian financial hub, the bank said in a statement. "The selection of Singapore for this year's board meeting signals Citi's intent to invest and grow our business here for years to come," said Tibor Pandi, Singapore Citi country officer.
(Bloomberg) — The UK is facing a “double whammy” as higher-for-longer interest rates begin to bite, with the country particularly vulnerable to a pullback in consumer spending and knock on consequences for corporate debt.Most Read from BloombergIsrael Latest: US to Offer Citizens Charter Flights From IsraelIsrael Latest: Hamas Leaders Targeted as Ground War LoomsApollo CEO Marc Rowan Demands UPenn Leaders Quit Over ‘Antisemitism’Stocks Drop as CPI, Weak Bond Auction Lift Yields: Markets WrapGho
Former Alameda Research CEO Caroline Ellison retook the stand on Wednesday after testifying that her former boss and boyfriend, Sam Bankman-Fried, had directed many of FTX’s now-public missteps.
(Bloomberg) — JD.com Inc. slumped to a record low in Hong Kong, after a slew of Wall Street brokerages cut the outlook for the e-commerce retailer on concerns that China’s consumption growth will remain sluggish.Most Read from BloombergIsrael Latest: UN Staff Given Evacuation Order for Northern GazaTop House Republican Wants Help From Democrats to Pick a SpeakerScalise Ends House Speaker Bid, Deepening Republican TurmoilVideo Game Cyberpunk 2077 Uses AI To Replace Deceased Voice ActorIsrael Lat
This past week has been a doozy. We’ve got the usual headwinds piling up, with sticky inflation, a 1-in-3 chance for another Fed interest rate hike this year, and rising bond rates putting pressure on stocks. And if that wasn’t enough, the geopolitical situation has heated up, with a major war in the Middle East as Israel goes to war in retaliation for Hamas’ latest atrocities. But there are opportunities in the market, and investors should not lose hope, despite the headwinds. The strategists a
The S&P 500's 5% decline from its intraday high for the year has hit even those star companies that have hit record levels in 2023. It could be an opportunity.
Tesla now dominates just half of the market, down from the 62% it held in the first quarter, despite a price war started by the Elon Musk-led company to solidify its foothold in the competitive EV arena. However, the company could reverse the downward trend with the launch of its Cybertruck electric pickup truck, which is set to be delivered to customers in the current quarter, the market research firm said. "Higher inventory levels, more product availability, and downward pricing pressure have helped spur continued linear growth of EV sales in the U.S. market," Cox said.
Adam Aron, the CEO of AMC, claims he was the victim of an extortion scheme that likely could have come as a result of some decisions of questionable judgment on his part.
If you're ready to invest $200,000 (or something close to it) with the goal of turning it into $1 million, this article will help you understand your options and focus your investment strategy. If you're not sure what you should do, … Continue reading → The post How to Invest $200K and Turn It Into $1 Million appeared first on SmartAsset Blog.
In the most recent trading session, Plug Power (PLUG) closed at $7.41, indicating a -1.72% shift from the previous trading day.
Palantir Technologies stock gave up its gains in intraday trading, dipping into the red after being on track earlier in the day to notch a seventh straight day of gains. Investors have been feeling bullish after a pair of headlines about the data-analytics software company. Palantir (ticker: PLTR) stock was up more than 1% earlier Thursday before turning lower.
As head of ARK Invest, Cathie Wood is one of the few celebrities in the financial world. She has solidified her status as a trailblazer and oracle in her near-decade-leading ARK. Wood and her firm have become synonymous with forward-thinking investing, focusing on disruptive, game-changing technologies. And she is not afraid to take positions in "risky" companies. She bought stock in Tesla Inc (NASDAQ:TSLA) and NVIDIA Corporation (NASDAQ:NVDA) in 2016. Wood has big ideas and makes splashy predic
Eli Lilly's (LLY) Mounjaro is also being evaluated in clinical studies for patients who are obese or overweight and have CKD. Investors are probably expecting similar success with Mounjaro's CKD study.
In the closing of the recent trading day, NextEra Energy (NEE) stood at $53, denoting a -1.01% change from the preceding trading day.
Audio clips of [Caroline Ellison’s Nov. 9 all-hands meeting](https://www.wsj.com/livecoverage/sam-bankman-fried-trial-ftx-caroline-ellison/card/-i-felt-free-to-be-honest-ellison-says-of-november-2022-alameda-meeting-6z3x4IgMyHQHby2THD9O) were played in court.
Investors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.