A Birkenstock banner hangs outdoors the New York Inventory Alternate in New York on Oct. 11, 2023, as Birkenstock launches an preliminary public providing.
Angela Weiss | Afp | Getty Photographs
Birkenstock shares slumped almost 10% Thursday after the corporate warned about its 2024 outlook throughout its first earnings report since its preliminary public providing.
The German shoe model reported a quarterly lack of about 28.3 million euros, or about $30.8 million, with an adjusted EBITDA margin of over 30% for its prior fiscal yr. Firm executives additionally warned that 2024 margins will doubtless face a “modest headwind” as the corporate spends extra money to ramp up operations — even because it expects income to develop 17% to 18%.
In its earnings report, Birkenstock stated it goals to considerably develop and make investments almost 150 million euros in retail retailer enlargement and manufacturing capability in 2024.
Birkenstock CEO Oliver Reichert stated in an announcement that final yr was the corporate’s most profitable yr, and he stays assured the corporate can develop its enterprise in 2024. Reichert stated he plans to faucet into “significant” geographic and manufacturing enlargement whereas the corporate stays “undeterred” by the broader macroeconomic panorama.
The corporate traded for the primary time in October, opening at $41 per share. The debut got here almost 250 years after the corporate was based by German cobbler Johann Adam Birkenstock.
“The best thing for the brand would be staying family owned, but within the family there were so many problems, so we go for the second-best option and that’s to be public and give the brand back to the people,” Reichert stated through the firm’s IPO.
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