Birkenstock, the renowned luxury footwear brand, is experiencing a significant surge in its share price. For the first time since its initial public offering (IPO), the company’s shares have reached the IPO price. This boost in share value follows a successful holiday shopping season, where U.S. consumers displayed robust spending during key events like Thanksgiving, Black Friday, and Cyber Monday. The positive performance of retail sales during this period is expected to potentially benefit luxury brands such as Birkenstock.

Initially, when the company went public on October 11th, its shares opened at $41, falling below the IPO price of $46 and dropping as low as $35.83. However, on Tuesday, the stock saw a significant rise of over 9%, which continued into Wednesday as shares soared by 2.7% to reach $46.60.

It is noteworthy to mention that the lackluster market debuts of Birkenstock and other highly anticipated offerings like chip designer Arm Holdings, grocery delivery app Instacart, and marketing automation firm Klaviyo have tempered expectations for a resurgence in the U.S. IPO market.

Analysts covering Birkenstock, as per data from LSEG, have set a median price target of $47.21, and the current recommendation for the stock is to “buy.” Furthermore, Birkenstock has attracted significant short interest, with approximately $259 million worth of shares (around 5.71 million shares) being shorted, according to data and analytics firm Ortex. During the IPO, a total of 32.3 million shares were sold.

Currently, the U.S. private equity firm L Catterton, backed by French billionaire Bernard Arnault and his luxury goods empire Louis Vuitton Moët Hennessy, is the owner of Birkenstock.

Useful 2 links:
1. Birkenstock Official Website
2. Louis Vuitton Moët Hennessy: Birkenstock Information