Birkenstock is backed by luxury conglomerate LVMH (OTCMKTS:LVMUY), which acquired a stake in the family-owned company in 2021. About 83% of the stock is held by private equity house L Catterton, which paid $4.3 billion for its stake.
How the stock trades will determine whether more companies come public this quarter.
The 7 Things
Recent IPOs for Instacart (NASDAQ:CART), Arm Holdings (NASDAQ:ARM), and Klaviyo (NYSE:KVYO) all left small investors disappointed. They priced at the top end of their expected range, popped briefly, then fell to near or below the offering price.
Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), and Morgan Stanley (NYSE:MS), all of which are participating in the offering, priced the stock at the midpoint of its expected range rather than the high-end.
Birkenstock was founded in 1774 and is known for comfortable styling. Its modern roots trace to 1925 when Konrad Birkenstock opened a factory making flexible insoles he invented. Birkenstock sandals were first imported to the U.S. in 1966 and became counterculture staples. They were later famously worn by Apple (NASDAQ:AAPL) co-founder Steve Jobs.
Under L Catterton, Birkenstock signed partnership deals with luxury brands controlled by LVMH, like Dior and Manolo Blahnik. It also launched a direct-to-consumer strategy.
Birkenstocks got product placement in the movie Barbie. The title character traded in her high heels for a pair. (It was one of the movie’s better jokes.)
Where BIRK stock trades a month from now will help determine the temperature of the whole IPO market next year.
BIRK Stock: What Happens Next?
If you believe in LVMH’s luxury strategy and Chatterton’s management skills, you might want to slip into a few shares of BIRK stock. Maybe next week.
As of this writing, Dana Blankenhorn held a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.