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.”
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.
