Don't Buy the Birkenstock IPO, Expert Urges

There is no reason for Birkenstock to go public, says David Trainer, CEO of New Constructs.

a display of Birkenstock footwear in store
(Image credit: Krisztian Bocsi/Bloomberg via Getty Images)

Birkenstock Holding (BIRK) is among the more recognizable initial public offerings (IPOs) of the fall, but retail investors who have long loved the company's clunky sandals would do well to steer clear of buying its stock, skeptics say.

Shares in the German premium footwear brand started trading October 11 on the New York Stock Exchange under the ticker BIRK. Birkenstock priced its IPO on Tuesday night at $46 per share. This was near the midpoint of its anticipated range of $44 to $49, which gave the company a market capitalization of roughly $8.7 billion. However, BIRK opened well below here on its first day of trading, at $41, before closing the session at $40.20.

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Dan Burrows
Senior Investing Writer,

Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.

A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.

Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.

Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.

Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.