Birkenstock's shares fell nearly 13% in their trading debut on the New York Stock Exchange, closing at $40.20 compared to their IPO price of $46 per share. The decline signals continued caution from investors about new stock offerings, as several other companies like Arm Holdings and Instacart also saw their shares retreat from opening prices in recent debuts. Some analysts note the valuation of Birkenstock at over $8 billion seems high compared to footwear peers, especially in a rising rate environment where consumer spending may slow. However, Birkenstock has very loyal customers, with 70% of existing U.S. consumers purchasing at least two pairs of shoes. However, competition in the casual footwear market remains fierce from brands like Nike, Skechers, and Crocs.