A Birkenstock banner hangs exterior the New York Stock Exchange in New York on Oct. 11, 2023, as Birkenstock launches an preliminary public providing.
Angela Weiss | Afp | Getty Images
Birkenstock shares slumped practically 10% Thursday after the company warned about its 2024 outlook during 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 12 months. Company executives additionally warned that 2024 margins will probably face a “modest headwind” as the company spends more cash to ramp up operations — even as it expects income to develop 17% to 18%.
In its earnings report, Birkenstock stated it goals to considerably develop and make investments practically 150 million euros in retail retailer growth and manufacturing capability in 2024.
Birkenstock CEO Oliver Reichert stated in a press release that final 12 months was the company’s most profitable 12 months, and he stays assured the company can develop its enterprise in 2024. Reichert stated he plans to faucet into “important” geographic and manufacturing growth whereas the company stays “undeterred” by the broader macroeconomic panorama.
The company traded for the first time in October, opening at $41 per share. The debut got here practically 250 years after the company was based by German cobbler Johann Adam Birkenstock.
“The smartest thing for the model could be staying household owned, however throughout the household there have been so many issues, so we go for the second-best choice and that is to be public and provides the model again to the individuals,” Reichert stated during the company’s IPO.
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