A Birkenstock banner hangs outside the New York Stock Exchange in New York on October 11, 2023, as Birkenstock launches its initial public offering.
Angela Weiss | Afp | Good pictures
Birkenstock Shares fell nearly 10% after the company warned about its 2024 outlook during its first earnings report since its initial public offering on Thursday.
The German shoe brand posted a quarterly loss of about 28.3 million euros, or about $30.8 million, with an adjusted EBITDA margin of 30% in its previous fiscal year. While expecting revenue to grow 17% to 18%, company executives warned that 2024 margins could face “modest headwinds.”
In its earnings report, Birkenstock said it aims to invest nearly 150 million euros in retail store expansion and significant growth in production capacity by 2024.
Birkenstock CEO Oliver Reichert said in a statement that last year was the company's most successful year, and he is confident that the company will be able to grow its business in 2024. Reichert said the company plans to engage in “significant” geographic and manufacturing expansion while it exists. Unencumbered by the broader macroeconomic landscape.
The company first traded in October, opening at $41 a share. It debuted nearly 250 years after German cobbler Johann Adam Birkenstock founded it.
“The best thing for the brand would be family ownership, but there were a lot of issues within the family, so we're going to the second best option, which is to go public and return the brand to the people,” Reichert said. Company's IPO.
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