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Key Takeaways
- Birkenstock reported its earnings for the first time since it went public in the fall.
- Revenue and sales were up in key areas, but net profit fell.
- The company anticipates margins will contract and sales growth would slow.
Shares of Birkenstock (BIRK) fell after its first earnings report since going public left investors wanting more.
The German sandal maker reported revenue of 1.492 billion euros ($1.62 billion) in its 2023 fiscal year, up 20% from 2022, with growth driven by both higher prices and volumes. Sales growth was most substantial in the Americas, where sales rose 20%, and fastest in Asia, where revenue increased 24%.
Net profit, meanwhile, of 75 million euros ($81 million) was nearly 60% lower than in 2022 as selling and administrative expenses surged.
Birkenstock forecast sales growth in 2024 would slow slightly from 2023 and warned margins are likely to contract as it ramps up production at a new factory in Pasewalk, Germany. It’s also aiming to spend about 150 million euros ($163 million) in 2024 to increase production capacity and expand its retail footprint.
“The added capacity will help fulfill future demand, and the Company is on schedule to realize the benefits of this capacity expansion later in fiscal year 2024 and the upcoming years,” the company said in a press release Thursday.
The shoemaker began trading on the New York Stock Exchange in October and at the time, it gave hope to investors looking at a struggling IPO market.
Birkenstock shares fell about 10% on Thursday to about $45, bringing the stock below its $46 IPO price.