German sandal maker Birkenstock reported another revenue record for its latest quarter ending June 30, but missed expectations, sending the stock tumbling on Thursday morning.
The company reported revenue of 564.8 million euros in the quarter, a 19% increase, but missed its expectation of 565.2 million euros. Net profit was up by 18% year-over-year to 75 million euros.
“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 Birkenstock CEO Oliver Reichert in a statement. “We achieved the highest quarterly revenue in our history, driven by unbreakable and growing demand across all segments, channels, and categories.”
Revenue grew by 15% in the Americas,19% in Europe, and by 41% in APMA. Direct-to-consumer revenue grew by 14% and wholesale grew by 23%.
Gross profit margin was down by 220 basis points to 59.5%, which the company attributed to the expansion of production capacity.
Reichert said retail partners and consumers are becoming increasingly selective and intentional about how they spend their money, and that they want more in-person touchpoints with products.
“Our Q3 results demonstrate our ability to meet consumer demand and align with shopping patterns while maintaining our disciplined engineered distribution approach, which remains our guiding principle,” Reichert said.
“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%.”
Birkenstock went public on the New York Stock Exchange in 2023, trading under the ticker symbol BIRK. Its share price fell by approximately 14% on Thursday following the earnings call.
