As Birkenstock stumble during debut on the stock market, who is their CEO, Oliver Reichert?

Birkenstock, the well-established German footwear brand with a rich history dating back to the 18th century, has entered the modern era financially as they launched their IPO on Wall Street yesterday, but to some unnerving numbers according to stock market analysts.

Birkenstock (BIRK.N) stock closed more than 12% below its initial public offering (IPO) price as the manufacturer saw its shares begin trading at $41, slightly below the IPO price of $46. The IPO raised $1.48 billion, falling within the initial price range of $44 to $49. However, the stock's closing price stood at $40.20, reflecting a 12.61% decline. 

The 11% decline from Birkenstock's IPO price on Tuesday to its opening price on Wednesday marks the worst debut by a company worth over $1 billion in nearly two years, according to LSEG data.

"What this shows is that the valuations that they are putting (on) these companies make absolutely zero sense, particularly when you're in a down market when there are so many other bargain opportunities available," said Thomas Hayes, chairman at Great Hill Capital in New York, in an interview with Reuters.

"If you're putting out new paper that no one would pay for existing companies, what you're going to see is that after the initial pop, you're going to see a drop," Hayes added.

But the news doesn’t sound like something Birkenstock CEO Oliver Reichert is overly concerned about, who history has demonstrated has a strategy in many of his financial endeavours. This is, after all, the man who sold the idea of the LVMH dynasty, the Arnault family, to invest in Birkenstocks successfully back in 2021, with L Catterton, a private equity firm with strong ties to the Arnault family, acquiring a majority stake in Birkenstock for nearly $5 billion

Who is Oliver Reichert?

Oliver Reichert, a seasoned business executive with a distinguished career, has held leadership positions in multiple organizations, showcasing his remarkable expertise and entrepreneurial acumen. Though there is no significant information regarding his personal life, he did reveal he was married and had a family during an interview with the Financial Times in 2020.

Before assuming the role of CEO at Birkenstock, Mr. Reichert demonstrated his leadership capabilities across a diverse range of enterprises. He has served as the Co-Managing Director at Ockenfels Group GmbH & Co. KG, Buccara GmbH & Co. KG, Birkenstock Immobilien GmbH & Co. KG, and Birkenstock International GmbH. 

His extensive leadership roles within the Birkenstock organization include positions as the Co-Managing Director at Birkenstock Americas GmbH, Co-Chief Executive Officer for Birkenstock Group BV & Co. KG, and Chief Executive Officer for Birkenstock Canada Ltd. These responsibilities underline his instrumental role in shaping the brand's global presence and strategic direction.

In addition to his involvement with Birkenstock, Mr. Reichert's professional background includes his tenure as the Chief Executive Officer of Deutsches SportFernsehen GmbH, showcasing his ability to excel in diverse and dynamic industries.