Birkenstock shares have shown a remarkable recovery one year after their initial public offering (IPO) in the U.S. market. The German sandal manufacturer has seen its share price rise significantly, reflecting a positive shift in investor sentiment.

The company’s share price closed at just under $50, surpassing the initial issue price of $46 and recovering from lows of around $36. Following a cautious pricing strategy for its October 2023 IPO, which raised nearly $1.5 billion, Birkenstock faced initial skepticism from investors due to concerns over consumer spending. Despite a rocky start, where shares fell nearly 13% on the first trading day, the stock rebounded to over $60 by August 2024.

However, disappointing quarterly results later tempered expectations. The IPO proceeds were primarily allocated to debt reduction, with a major stakeholder receiving about two-thirds of the funds. The company’s CEO has reiterated a commitment to sustainable long-term growth, as Birkenstock evolves from its traditional image to become a fashionable accessory, collaborating with high-end brands.

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