The German shoe manufacturer anticipates growth in sales for its 2024 fiscal year to exceed 15%, following a 20% increase to nearly €1.5 billion (£1.29 billion) in 2023.
However, investors were unimpressed with the forecast, which caused shares to drop.
These were the company’s first results since its shares were listed in the US.
It has exposed the long-standing family business to criticism on the open market.
Executives expressed optimism about the future, but Birkenstock shares fell more than 8% after the results were released. The company’s profits decreased the previous year, and as it continues to invest, margins are predicted to decline even more in 2024.
The company is also encountering doubts about the sustainability of the robust consumer spending that has fueled its sales, given the slowdown in major markets like the US and the decline in luxury sales.
Oliver Reichert, the boss, stated that he had not noticed a noticeable decline in demand and was “undeterred” by the general financial doldrums.
In a conference call with analysts to go over the results, he said, “It is a bit different from the desire-driven luxury brands.”
“Under pressure, they weigh significantly more. We observe growth everywhere, so we are not.”
Over the past ten years, Birkenstock—once synonymous with a certain kind of granola-eating, nature-loving dorkiness—has seen a change in reputation thanks to designer partnerships and leading roles in movies like Barbie.
However, the company’s ride on the stock markets has been rocky, raising concerns about how to value the business that manufactures “luxury” shoes for the mainstream market while operating in an uncertain area.
The once-uncool sandal company Birkenstock is now valued at billions.
When it first began trading in October, its shares saw a significant decline, but they have since rebounded.
Following the release of the results, they were trading at about $45 per share in mid-morning New York trade on Thursday.
That was comparable to the price they achieved during the company’s IPO, which resulted in a market valuation of roughly $9 billion.
Mr. Reichert said, “We are aware that it is not easy to compare Birkenstock to any other listed company,” during a call for investors to consider the findings. “We are neither luxury nor fashion nor footwear.”