Birkenstock bounces amid broader market rally

Klaviyo

16/10/2023 18:04

** Shares of Birkenstock  BIRK.N  rising 3.9% to $37.80 as
German sandal maker looks to rise for first time since last
week's IPO, as Wall Street rallies on Mon
    ** BIRK shares on Fri closed down 3% at $36.38 in their
third day of trading, 21% below the $46 IPO price set on Oct 10
    ** On Mon, S&P 500 Consumer Discretionary index  .SPLRCD 
leading gains across major S&P sectors with 1.4% advance  .N 
    ** At current levels, Birkenstock has market cap of roughly
$7 bln, or about $7.6 bln on a fully-diluted basis
    ** L Catteron, U.S. PE firm backed by French billionaire
Bernard Arnault and his luxury goods empire LVMH  LVMH.PA , paid
$4.35 bln to acquire a majority stake in Birkenstock in 2021
    ** Underwhelming debuts recently by marquee firms
Birkenstock, chip designer Arm Holdings  ARM.O , grocery
delivery app Instacart/Maplebear  CART.O  and marketing
automation firm Klaviyo  KVYO.N  have dampened hopes for a
resurgence in IPOs heading into year-end
    ** Shares of CART falling on Mon as analysts at banks that
worked on the IPO tout growth potential, but flag challenges
including competition from delivery firms such as Uber  UBER.N ,
DoorDash  DASH.O , Amazon  AMZN.O  and big-box retailer Walmart
 WMT.N 
    ** KVYO's stock edges up as its research quiet period ends

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))