The popular footwear company Birkenstock (NYSE:BIRK) skidded in trading after it warned of a “modest headwind” to its adjusted EBITDA in FY24. This was due to an increase in costs and “an initial under-absorption in Pasewalk.” Pasewalk is the location of its new production plant. Over the long term, BIRK expects adjusted EBITDA margin to be in the “low thirties with slight variations.”
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In FY24, the company expects to generate revenues in the range of €1.74 billion to €1.76 billion on a constant currency basis with an estimated growth between 17% and 18% year-over-year. Analysts expect FY24 revenue of €1.7 billion.
Furthermore, Birkenstock swung to a loss of €0.15 per share in the fourth quarter compared to earnings of €0.32 per share in the same period last year. The company’s Q4 revenues surged 16% year-over-year to €374.5 million, surpassing consensus estimates of €354.8 million.
This was the company’s inaugural quarter after its listing on the NYSE in October last year.
Is Birkenstock a Good Investment?
Analysts remain cautiously optimistic about BIRK stock with a Moderate Buy consensus rating based on 12 Buys and seven Holds. BIRK stock has soared by more than 20% since its listing in October, and the average BIRK price target of $47.23 implies an upside potential of 2.7% at current levels.
