Iconic German sandal maker Birkenstock Holdings Ltd.’s stock fell 12.6% in its trading debut Wednesday, signaling that investors remain cautious about new deals and the casual-footwear market remains competitive.
Chip maker Arm Holdings Ltd. ARM, -1.85% ; Klaviyo KVYO, -3.34% a digital marketing company; and Instacart, which trades as Maplebear Inc. CART, -7.36% ; all enjoyed strong gains on their first day of trade but pared those in the following sessions. Instacart ended at $24.94 on Wednesday, well below its issue price of $30.
Birkenstock clearly has its fans, as its customers are brand loyal, with 70% of existing U.S. consumers, for example, purchasing at least two pairs of its shoes, according to its filing documents. “It might tell us, too, whether cashed-up millennials like to buy the stocks of products they commonly find on the bottom shelf of their wardrobes,” he said in emailed comments.
David Trainer, Chief Executive of independent equity research company New Constructs, said ahead of the deal that the valuation was far too high, noting that it was higher than peers such as Skechers USA Inc. SKX, -0.39%, Crocs Inc. CROX, -0.41% and Steve Madden Ltd. SHOO, +1.17%. For more, see: Birkenstock is going public: 5 things to know about the iconic German sandal maker’s IPO designs
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