Iconic Sandal Maker Reports Profit Below Estimates, But Sees Growth in Key Areas

  • Birkenstock Holding PLC’s stock fell 14.7% after profit missed estimates
  • Fiscal third-quarter profit was up from the previous year but below expectations
  • Revenue grew in Americas, Europe, and APMA on a constant currency basis
  • Direct-to-consumer revenue increased by 14%, B2B revenue by 23%
  • CEO Oliver Reichert: ‘Our brand remains very strong’
  • Expansion into new categories and owned retail stores
  • Seven new stores added, sales up more than 60%
  • Company maintains fiscal 2024 guidance and profitability goals

Birkenstock Holding PLC’s stock fell 14.7% after the German sandal maker’s fiscal third-quarter profit missed estimates, despite reporting a 19% revenue growth to €565 million and strong demand across all segments. CEO Oliver Reichert attributed this to the company’s expansion into new categories and owned retail stores, with seven new stores added in the quarter. The company maintains its fiscal 2024 guidance and profitability goals.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Birkenstock Holding PLC’s financial performance in the fiscal third quarter, including details on profit, revenue growth, and CEO comments on the company’s strategy and outlook. It also includes relevant context such as stock performance and comparisons to market indices.
Noise Level: 3
Noise Justification: The article provides relevant information about Birkenstock Holding PLC’s financial performance and CEO’s comments on the company’s growth strategies. It includes specific numbers and details about revenue, profitability, and expansion plans. However, it lacks a broader context or analysis of the market trends or industry-wide implications, making it somewhat informative but not highly insightful.
Public Companies: Birkenstock Holding PLC (BIRK), S&P 500 (SPX)
Key People: Oliver Reichert (Chief Executive), Erik Massmann (Chief Financial Officer)

Track all markets on TradingView

Financial Relevance: Yes
Financial Markets Impacted: Birkenstock Holding PLC’s stock BIRK
Financial Rating Justification: The article discusses Birkenstock Holding PLC’s financial performance, including its profit and revenue growth, as well as the impact on the company’s stock price. This is relevant to financial topics and has an effect on the financial markets through the decline in the company’s stock value.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
Move Size: The market move size mentioned in this article is a 14.7% decrease in Birkenstock Holding PLC’s stock price on Thursday.
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Image source: SounderBruce / Own work
Flickr copy: Amazon Tower I (Rufus Block 14)

Reported publicly: www.marketwatch.com www.barrons.com