Birkenstock (NYSE:BIRK) shares are trending lower ahead of Thursday’s market open as the footwear company’s latest quarterly results were below Wall Street’s expectations, missing both profit and sales estimates.
While the company achieved a quarterly record revenue of €565M ($608.2M), up 19% year-over-year, it fell short of estimates of €569.32M ($631.7M). An adjusted profit of €0.49 was also below expectations of €0.52. Adjusted EBITDA increased 15% to €186M, but the adjusted EBITDA margin fell 140 basis points year-over-year to 34.4%.
Birkenstock’s (BIRK) gross profit margin dropped 220 basis points to 59.5% due to the temporary impact of production capacity expansion combined with the increase in B2B share compared to a year ago.
Regionally, sales were strongest in Asia/Pacific with growth of 41%, while European sales were up 19%, and up 15% in the Americas. Direct-to-consumer sales increased 14% from the same quarter last year.
Looking ahead to the remainder of the year, Birkenstock (BIRK) confirms its revenue guidance growth of ~19%, which roughly translates to €1.7745, below the estimated €1.80B, and an adjusted EBITDA margin of 30%-30.5% versus 32.4% in FY23. Gross profit margin is expected to be approximately 60%.
Shares are down 13% in premarket trading and expected to open at a 3-month low.
