(Reuters) - Shares of Birkenstock dropped 6% on Thursday, deepening losses after the German luxury sandal seller stumbled the day before in its Wall Street debut.
In its first session on Wall Street on Wednesday, Birkenstock tumbled over 12% from the $46 price set in its initial public offer, raising $1.48 billion. It had aimed to price the IPO for as much as $49 a share.
Last trading at about $37.79 on Thursday, the stock has now dropped 18% from its IPO price.
The second-day drop in Birkenstock shares was deeper than a broad Wall Street sell-off, with the S&P 500 last down about 1%.
The 250-year-old company's underwhelming U.S. market debut follows weak performances from chip designer Arm Holdings (NASDAQ:ARM) and grocery delivery platform Instacart (NASDAQ:CART), formally called Maplebear , following their IPOs last month.
Some investors had hoped those marquee companies would spark a resurgence in public listings after volatile markets in the past two years dampened demand for IPOs.
Arm on Thursday slumped 5.2% to $51.70, just above its $51 IPO price on Sept. 13, while Instacart was down 1.7% at $24.52, well below its $30 IPO price on Sept. 18.
With Thursday's loss, Birkenstock has a market capitalization of about $7 billion, or nearly $8 billion on a fully diluted basis. That is still nearly double the $4.35 billion at which L Catterton, the U.S. private equity firm backed by French billionaire Bernard Arnault and his luxury goods empire Louis Vuitton Moet Hennessy, paid to acquire a majority stake in the shoemaker in 2021.
Birkenstock's listing on Wednesday coincided with a sharp drop in LVMH's shares following the luxury brand's slower third-quarter sales growth.
"The timing of the IPO was in a way unfortunate as it followed LVMH Q3 results, in which management stressed how European consumers had deteriorated in a significant way in Q3," said Javier Gonzalez Lastra, Investment Partner at Tema ETFs.