Birkenstock Joins Renewed Wall St. IPO Parade

Sandal company Birkenstock is preparing to go public on the New York Stock Exchange next week, but investors and analysts are cautious, suggesting that the company needs to increase sales of its clogs and boots, particularly through its own website and boutiques, according to a report by Ananya Mariam Rajesh and Helen Reid for Reuters.

Birkenstock's upcoming IPO has put a spotlight on the IPO market, which is gradually reopening after two relatively quiet years and a burst of activity in September. I Photo: Birkenstock Facebook

Birkenstock's upcoming IPO has put a spotlight on the IPO market, which is gradually reopening after two relatively quiet years and a burst of activity in September. However, several recent IPOs, including Arm, Instacart, and Kellogg spinoff Kellanova, have seen their share prices decline.

The company faces the challenge of a cost-of-living crisis, which has led consumers to reduce spending on discretionary items like shoes and clothing in favor of essentials.

This shift in consumer behavior could pose challenges for a premium footwear company like Birkenstock. Worldwide footwear sales are expected to increase by just 2.9% in 2022 due to recent price hikes, according to market research firm Euromonitor International.

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