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Unboxing Birkenstock's first public earnings

A pair of Birkenstock sandals sit in a display box.

Photo: Paul Morigi/Getty Images for Birkenstock

Shares of Birkenstock fell about 8% at the market's open due to what the sandal maker characterized as a modest headwind to its adjusted EBITDA margin despite beating on revenue.

Driving the news: Birkenstock's first earnings since its IPO are closely watched as its performance may reverberate throughout the broader market.

  • It now projects for fiscal 2024 an adjusted EBITDA of between €520 million to €530 million or a margin of about 30%.

Details: Revenue in its fourth quarter, which ended Sept. 30, grew about 16% to nearly €375 million from about €322 million a year earlier.

  • Adjusted EBITDA declined almost 6% to €96 million from about €102 million in that period.
  • For fiscal 2023, revenue grew 20% to nearly €1.49 billion from €1.24 billion, while adjusted EBITDA grew 11% to €483 million from €435 million.

What's next: Birkenstock expects revenue to grow 17% to 18% or to between €1.74 billion to €1.76 billion for fiscal 2024.

The bottom line: Investors are more obsessed with profit than they are with growth, a dramatic switch over the past couple of years.

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