A Birkenstock banner hangs outside the New York Stock Exchange in New York on Oct. 11, 2023, as Birkenstock launches an initial public offering.
Angela Weiss | Afp | Getty Images
Birkenstock shares slumped nearly 10% Thursday after the company warned about its 2024 outlook during its first earnings report since its initial public offering.
The German shoe brand reported a quarterly loss of about 28.3 million euros, or about $30.8 million, with an adjusted EBITDA margin of over 30% for its prior fiscal year. Company executives also warned that 2024 margins will likely face a “modest headwind” as the company spends more money to ramp up operations — even as it expects revenue to grow 17% to 18%.
In its earnings report, Birkenstock said it aims to substantially grow and invest nearly 150 million euros in retail store expansion and production capacity in 2024.
Birkenstock CEO Oliver Reichert said in a statement that last year was the company’s most successful year, and he remains confident the company can grow its business in 2024. Reichert said he plans to tap into “significant” geographic and production expansion while the company remains “undeterred” by the broader macroeconomic landscape.
The company traded for the first time in October, opening at $41 per share. The debut came nearly 250 years after the company was founded 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 said during the company’s IPO.
Don’t miss these stories from CNBC PRO: