When Birkenstock (BIRK) went public in October 2023, the pitch was bold and simple: a 250-year-old German sandal maker reinvented as the next big luxury name on the New York Stock Exchange.

That story is now in serious trouble.

Shares, as of mid-day May 19, have collapsed from an all-time high of $123.17 to a record low of $32.44, wiping out roughly $5.7 billion in market value and leaving the business worth almost 38% less than its IPO valuation, Reuters reports.

The slide last week was sharp. After Birkenstock reported softer fiscal Q2 growth on May 13 and declined to raise its annual sales outlook, the stock fell more than 14% in a single session.

What looks like a one-quarter stumble is something deeper for long-term…