A Birkenstock banner hangs outside the New York Stock Exchange in New York on October 11, 2023, as Birkenstock launches an initial public offering.
Angela Weiss | afp | fake images
Birkenstock Shares fell 7% on Thursday after the company warned about its 2024 outlook during its first earnings report since its initial public offering.
The German footwear brand reported a quarterly loss of around 28.3 million euros, or around $30.8 million, with an adjusted EBITDA margin of more than 30% from its previous fiscal year. Company executives also warned that 2024 margins will likely face a “modest headwind” as the company spends more money to boost operations, even as it expects revenue to grow 17% to 18%.
In its earnings report, Birkenstock said it intends to grow substantially and invest almost €150 million in expanding retail stores and production capacity in 2024.
Birkenstock CEO Oliver Reichert said in a statement that last year was the company's most successful year and that he remains confident the company will be able to grow its business in 2024. Reichert said he plans to take advantage of a geographic expansion and of “significant” production as long as the company remains “unfazed” by the broader macroeconomic picture.
The company first traded in October, opening at $41 per share. The debut came almost 250 years after the company was founded by German shoemaker Johann Adam Birkenstock.
“The best thing for the brand would be to remain family owned, but within the family there were so many problems, so we went with the second best option and that is to go public and give the brand back to the people,” Reichert said during the company's IPO. the company.
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