Birkenstock shares plunge more than 15% after sandal maker misses profit estimates

Core Viewpoint - Birkenstock shares fell over 15% after the company reported quarterly profits that missed expectations due to a global expansion plan impacting margins [1][2]. Financial Performance - The company reported an adjusted profit per share of 54 cents, below the expected 58 cents [1]. - Revenue was $624.6 million, a 19% increase year-over-year, but slightly below estimates of $625.6 million [2]. - Gross profit margin decreased by 220 basis points to 59.5% in the third quarter due to production expansion efforts [4]. Strategic Initiatives - Birkenstock is focusing on rapid international expansion, opening stores in markets like India and Japan to enhance sales [3][5]. - The company is investing in new manufacturing channels and updating existing facilities, including a new plant in Pasewalk, Germany [3][4]. - CEO Oliver Reichert noted a shift towards in-store purchases, prompting the company to expand its retail presence [2]. Market Position - Despite the earnings miss, Birkenstock continues to gain market share at major retailers such as Nordstrom and Foot Locker, driven by strong demand for its products [5]. - The company maintained its annual sales and profit forecasts, indicating confidence in its growth strategy [5].