Shares in Birkenstock, the luxury sandal maker, suffered a 6% decline on Thursday, intensifying losses after its lacklustre Wall Street debut the previous day.
During its initial session, Birkenstock's stock plummeted over 12% from its initial public offer (IPO) price of US$46, which raised US$1.48 billion.
Having initially aimed to list at US$49 per share, the German footwear company is currently trading at approximately US$37.79, representing an 18% fall from its IPO price.
This second-day drop was more significant than the broader Wall Street sell-off, with the S&P 500 down about 1%.
Birkenstock's tepid U.S. market debut follows similarly weak performances from notable companies like chip designer Arm Holdings PLC (NASDAQ:ARM)) and grocery delivery platform Instacart (NASDAQ:CART) after their IPOs the previous month.
Despite these challenges, Birkenstock maintains a market capitalisation of around US$7 billion, nearly double its US$4.35 billion valuation when L Catterton, the U.S. private equity firm backed by French billionaire and LVMH boss Bernard Arnault acquired a majority stake in 2021.
The timing of Birkenstock's IPO coincided with a decline in LVMH's shares due to slower third-quarter sales growth.