Do you know the human foot makes use of 26 bones, 33 muscular tissues and greater than 100 tendons and ligaments when an individual is strolling? Neither did I, till I learn the quirky IPO prospectus for Birkenstock, the German maker of sublimely ugly, supremely comfy sandals that went public on Wednesday. It was a lackluster debut: Birkenstock shares closed at $40.20, down practically 13% from their $46 providing worth. It was one other signal the nice vibes within the IPO market in latest weeks have largely dissipated. One latest IPO poster youngster, Instacart, trades under its providing worth, whereas two others, Arm and Klayvio, are barely buying and selling above theirs.
The investor response to Birkenstock is a pity. This isn’t some sickly direct to client enterprise. It’s a beloved model with an uncanny attraction throughout generations—from the free lovin’ hippies of the Nineteen Sixties to at this time’s tweens and high-end fashionistas. Its free money circulate can be rising properly: €163 million within the 9 months ended June 30, greater than double the €73 million in free money circulate from the identical interval a 12 months earlier. And income grew 21% to €1.12 billion between those self same time durations.