Birkenstock (NYSE:BIRK) stock is falling on Thursday after the footwear manufacturer and seller failed to impress investors with its first earnings report after going public.
The bad news for Birkenstock comes from its adjusted earnings per share of 14 cents for its fourth quarter of 2023. That comes in under the 17 cents per share that Wall Street was expecting for the period.
Also not helping matters is the company’s outlook for 2024. Birkenstock warns investors that it expects moderate headwinds during the year. It attributes this to “planned ramp-up costs and an initial under-absorption in Pasewalk.”
Oliver Reichert, CEO and board member of Birkenstock, said the following about the outlook:
“For fiscal year 2024 we are confident to further grow our business by tapping significant addressable geographic, category extension and distribution white space, remaining strongly committed to delivering uncompromising premium quality to our customers and undeterred by the broader macroeconomic backdrop.”
What’s Next for BIRK Stock?
If today’s response to the company’s first public earnings report is anything to go by, then Birkenstock has a rough road ahead of it, especially since it didn’t instill investors with confidence with its guidance for the current year.
That caused heavy trading of BIRK stock today, with investors selling the shares. As of this writing, more than 1.4 million shares have been traded. For the record, the company’s daily average trading volume is about 827,000 shares.
BIRK stock is down 7.7% as of Thursday morning.
There are more stock market stories worth reading about down below!
We have all of the hottest stock market news that traders need to know about on Thursday! A few examples include what’s happening with YouTube layoffs, Hertz (NASDAQ:HTZ) stock and Taiwan Semi (NYSE:TSM) shares today. All of that news is ready to go at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
