Birkenstock's profit outlook is uncertain as the shoe company reports a slump in earnings during its first report since the IPO.

• The company warned that profit margins could be affected in the upcoming year, causing Birkenstock's stock to slump on Thursday.
• The company announced plans to expand its operations in 2024.
• In October, the company went public, starting at $41 per share.

The company's shares slumped 7% on Thursday after it issued a warning about its 2024 outlook in its first earnings report since its IPO.

The German shoe brand reported a quarterly loss of approximately 28.3 million euros, or about $30.8 million, with an adjusted EBITDA margin of over 30% for its prior fiscal year. Despite this, company executives anticipate that 2024 margins will face a “modest headwind” as the company invests more in operations, even as it expects revenue to grow 17% to 18%.

In its earnings report, Birkenstock announced plans to significantly expand its retail stores and increase production capacity by investing nearly 150 million euros in 2024.

Last year was Birkenstock's most successful year, and CEO Oliver Reichert is confident the company can continue to grow its business in 2024. He plans to expand both geographically and in production, while remaining undeterred by the broader macroeconomic landscape.

Nearly 250 years after its founding by German cobbler Johann Adam Birkenstock, the company made its first trade in October, opening at $41 per share.