Birkenstock shares tank as record quarterly growth underwhelms

29th Aug 2024 14:21

(Sharecast News) - US-listed shares of Birkenstock plunged on Thursday after the German sandal maker underwhelmed investors with a record third-quarter performance, as it narrowly missed consensus forecasts with its top line.

The company, which debuted on the New York Stock Exchange last October, reported a 19% year-on-year increase in revenue to €565m for the fiscal third quarter ended 30 June, around €1m shy of analysts' forecasts.

Birkenstock said it saw double-digit growth across all business segments, including 15% growth in the Americas, 19% in Europe and 41% in Asia Pacific, Middle East and Africa.

Adjusted net profit was up 14% on last year at €92m, more or less meeting market forecasts.

However, gross profit margins were down 220 basis points at 59.5% due to a production capacity expansion combined with the impact of increase B2B on the revenue mix compared with a year ago. The adjusted EBITDA margin fell 140 basis points to 34.4%.

The company reiterated its full-year guidance for revenue growth of 20% and an adjusted EBITDA margin of 30-30.5%.

"We achieved the highest quarterly revenue in our history, driven by unbreakable and growing demand across all segments, channels and categories," said chief executive Oliver Reichert.

"We remain confident in our ability to deliver on our medium to long-term objectives for mid-to-high teens revenue growth, gross profit margin of 60% and adjusted EBITDA margin of over 30%."

The stock was down nearly 14% at $52.31 by 1044 in New York, but still remained around 44% higher since its stock-market debut last year.