Birkenstock trips further after dismal US debut

Klaviyo

12/10/2023 15:03

(Updates stock activity, adds investor commentary)
    ** Birkenstock's  BIRK.N  shares down 3.5% at $38.81, a day
following German sandal maker's dismal Wall Street debut
    ** BIRK on Weds opened well below $46 IPO price and finished
down nearly 13% at $40.20, giving co a fully-diluted market cap
of roughly $8.2 bln
    ** 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 majority stake in Birkenstock in 2021
    ** “It’s always tricky to comment on 1-day share price
performance, but the timing of the IPO was in a way unfortunate
as it followed LVMH Q3 results, in which management stressed how
European consumers had deteriorated in a significant way in
Q3....dragging down the share prices of many consumer
discretionary stocks,” said Javier Gonzalez Lastra, Investment
Partner at Tema ETFs
    ** LVMH's shares tumbled >6% on Weds after co said sales
growth slowed to 7% in Q3 from 19% in Q2
    ** L Catterton owns about 83% of Birkenstock post-IPO
    ** Birkenstock is the 4th major firm to price a U.S. IPO
over the past month following offerings of chip designer Arm
Holdings  ARM.O , grocery delivery app Instacart/Maplebear
 CART.O  and marketing automation firm Klaviyo  KVYO.N 
    ** Birkenstock's underwhelming debut, along with the
lackluster performance of that trio since going public, has
added to doubts about an IPO market resurgence heading into
year-end
    ** Shares of ARM, KVYO and CART also falling on Thurs. CART
is the only one of the trio currently trading below IPO price

 (Reporting by Lance Tupper and Deborah Sophia
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))