In October 2023, Birkenstock, a German shoe manufacturer, completed a decade of rapid growth by going public in New York. The IPO, which was supposed to be a triumph, turned into a disaster.

Despite the fact that the company raised about $1.5 billion, the shares fell by 13% on the first day, becoming the worst debut of a major listing in the United States in the last two years. An attempt by Birkenstock board members to raise the "Arizona" sandal as a mascot on the stock exchange did not help. Since then, the company's CEO, chief executive Officer Oliver Reichert has struggled to regain the trust of investors.

He insisted that the last decade of Birkenstock's success was just a prelude to even more profitable growth. Reichert predicted that the company's sales would grow by 20% per year, and profits would be comparable to those of luxury brands such as Hermès. To achieve these goals, Birkenstock began exploring new markets such as China, India and the Middle East. The company has also expanded its line of shoes for the cold season, releasing Bend sneakers, Bryson and Birmingham boots. During the Christmas season, models with closed noses surpassed the sales of sandals for the first time. Despite Reicherta's efforts, many investors remained skeptical.

On May 30, 2024, CEO Birkenstock finally made a move that Wall Street understood. He announced an increase in profit targets for the year, which led to the largest increase in the company's shares since the IPO.

Will the company be able to meet the expectations of investors and achieve sustainable growth in the future?

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