Birkenstock (BIRK:NYSE) tripped over itself on Wall Street last week, with the shares falling by as much as 14% at the opening bell before stabilising after the German shoemaker delivered a mixed earnings report for the fourth quarter of 2023 and a muted outlook for 2024.

The stock slid as the European footwear brand forecast 18% revenue growth for 2024 and EBITDA (earnings before interest, tax, depreciation and amortisation) of between $566 million and $577 million.

The company said it expected profits to shrink this year as it ramped up its investment plans, although there are clear signs shoppers globally are cutting spending on ‘nice-to-haves’ in favour of ‘must-haves’ like food and shelter.

Birkenstock has undergone a major shift under chief executive Oliver Reichert in the last decade, going from a family-owned specialist manufacturer to a global footwear brand.

The company made its stock market debut last October at $46 per share, giving it a market value of approximately $9 billion.

Analysts at Morgan Stanley were encouraged by the firm’s full-price sales performance, while Jefferies analyst Randall Konik flagged Birkenstock’s 30% sales growth in the US in the final quarter of 2023 and suggested the firm’s 2024 sales guidance could turn out to be ‘conservative’.

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