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Birkenstock shares slip as Q3 results fall short; annual guidance maintained

Published 2024-08-29, 05:34 a/m
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Birkenstock Holding (NYSE:BIRK) saw its shares slide more than 2% in Thursday’s premarket after the German shoemaker missed analysts' expectations for Q3 earnings and revenue.

Specifically, the company posted third-quarter earnings per share (EPS) of $0.40, falling short of consensus estimates of $0.52. Revenue was reported at $564.8 million, also slightly below the expected $566.15 million.

Birkenstock’s Q3 gross profit margin was 59.5%, down 220 basis points from 61.7% the previous year, primarily due to the temporary effects of capacity expansion.

Adjusted EBITDA was reported at €186.3 million ($206.6 million), narrowly beating the estimate of €186.2 million.

“Our results for the third quarter of 2024 once again demonstrate the strength of our business model and our ability to achieve the growth and profitability goals we set out for you during our IPO and recent secondary offering roadshow,” said Oliver Reichert, CEO of Birkenstock Group.

“We achieved the highest quarterly revenue in our history, driven by unbreakable and growing demand across all segments, channels and categories.”

For fiscal 2024, the company reaffirmed its guidance, expecting revenue growth of approximately 19% on a reported basis and 20% on a constant currency basis, with an Adjusted EBITDA margin between 30% and 30.5%.

It also reiterated its medium to long-term profitability goals, targeting a gross profit margin of around 60% and maintaining an adjusted EBITDA margin above 30%.

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