Birkenstock Shares Dip as Q3 Sales and Profit Miss Estimates

Birkenstock missed its Q3 revenue expectations, reporting 564.8 million euros ($626.1 million) against analysts' estimates of 565.2 million euros. The company attributed the shortfall to high living costs and decreased consumer spending on luxury footwear. As a result, Birkenstock's shares fell over 2% following the earnings report.

The German sandal maker's Q3 gross profit margin dropped to 59.5%, down from 61.7% the previous year, mainly due to expansion-related costs. Adjusted EBITDA was slightly above estimates at 186.3 million euros ($206.6 million), compared to the expected 185.2 million euros. Despite these challenges, Birkenstock reiterated its forecast for fiscal 2024, anticipating approximately 19% revenue growth on a reported basis and 20% on a constant currency basis, with an adjusted EBITDA margin between 30% and 30.5%. The company also reaffirmed its medium to long-term profitability goals, targeting a gross profit margin around 60% and an adjusted EBITDA margin above 30%.