Birkenstock IPO price of $46 was 'greedy': Fmr. LVMH exec.

Yahoo Finance Video
28,893 次觀看・1 年前

Birkenstock (BIRK) made its IPO debut Wednesday at $41 a share, with the company originally pricing at $46 a share. The company initially set a range of $44 to $49 per share, looking to raise about $1.48 billion. The company joins a list of recent IPOs that have been closely eyed by investors to gauge the overall IPO market.

Former LVMH Chairman of North America Pauline Brown joins Yahoo Finance to discuss her views on how Birkenstock has fared in recent years and what the brand will have to achieve to keep the company strong going forward.

Brown expresses her thoughts on the valuation: "They were too greedy at coming out at $46 a share... I think it was too aggressive and a bit reckless."

Brown continues, looking at the company's shift away from functionality and doubling down as a fashion brand, which she feels is "a much harder audience to sustain or to build on than the original audience of orthopedic and hippies who were living with it for a good generation."

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