Birkenstock Shares Sink More Than 10% Below IPO Price After Lackluster NYSE Debut

Birkenstock priced its IPO at $46 per share but shares opened at $41 and fell to $40 by close on the first day of trading.
The company raised nearly $1.5 billion through the IPO but failed to meet initial valuation expectations around $9 billion.
Birkenstock saw revenue growth from 2020 to 2022 but net profits fell nearly 20% in the first 9 months of 2022.
The performance has dampened optimism about the IPO market as other recent debuts like Instacart and Arm also struggled initially.
Birkenstock aims to expand globally but faces economic challenges like inflation, rising rates, and slower luxury goods spending.