Sandal company Birkenstock is set to list on the New York Stock Exchange next week, attracting investor attention to the IPO market. However, analysts are warning that Birkenstock needs to diversify its product range and increase sales from its own website and boutiques to attract new shoppers amid a cost of living crisis. The company, backed by LVMH-affiliated private equity firm L Catterton, has seen steady store traffic, but it needs to expand its direct-to-consumer sales to pull in more customers. Despite challenges, Birkenstock has several factors working in its favor, including its ability to stay popular and modernize its brand. It has tapped into strong structural changes in buying habits, such as health, comfort, and sustainability. Additionally, the company has the support of luxury sector heavyweights, including Alexandre Arnault and LVMH. However, the performance of other recent footwear IPOs, such as AllBirds and Dr. Martens, suggests a challenging outlook for Birkenstock on the stock market.