Birkenstock Holding (NYSE:BIRK) reported better-than-anticipated revenue and adjusted EBITDA for the fiscal first quarter and reiterated its outlook for 2024.
BIRK shares rose 0.5% in premarket trading Thursday.
For the Q1, the shoemaker revealed a loss per share of $0.04. Revenue came in at $302.9 million, up 26% year-over-year, and topping the consensus estimate of $288.2 million.
The adjusted EBITDA stood at €81 million, also surpassing the predicted €75.9 million.
Birkenstock said its direct-to-consumer (DTC) sales grew 30% on a constant currency basis, increasing DTC's share of total revenue by 100 basis points to 53%.
This growth was complemented by a 22% rise in business-to-business (B2B) revenue on a constant currency basis.
Still, the company’s gross profit margin saw a slight decline to 61.0% from 61.7%, which it attributed to adverse currency effects and temporary costs associated with capacity expansion.
Looking ahead, Birkenstock said it remains confident in its financial projections for 2024.
The company anticipates maintaining a gross profit margin above 60% and aims for an adjusted EBITDA margin in the low thirties, reaffirming its previous guidance.
“Our results for the first quarter of 2024 once again demonstrate the resilience of our business model and the strong sustained demand for our products. Given our engineered distribution model, demand continues to outpace supply in all regions, channels and categories,” said Oliver Reichert, CEO of Birkenstock Group.
“As previously communicated, our strategic investments into future growth are having a planned, temporary impact on our profitability,” he added.