Birkenstock shares slumped almost 10% Thursday after the corporate warned about its 2024 outlook throughout its first earnings report since its preliminary public providing.

The German shoe model reported a quarterly lack of about 28.3 million euros, or about $30.8 million, with an adjusted EBITDA margin of over 30% for its prior fiscal 12 months. Firm executives additionally warned that 2024 margins will probably face a “modest headwind” as the corporate spends extra money to ramp up operations — even because it expects income to develop 17% to 18%.

In its earnings report, Birkenstock mentioned it goals to considerably develop and make investments almost 150 million euros in retail retailer growth and manufacturing capability in 2024.

Birkenstock CEO Oliver Reichert mentioned in an announcement that final 12 months was the corporate’s most profitable 12 months, and he stays assured the corporate can develop its enterprise in 2024. Reichert mentioned he plans to faucet into “vital” geographic and manufacturing growth whereas the corporate stays “undeterred” by the broader macroeconomic panorama.

The corporate traded for the primary time in October, opening at $41 per share. The debut got here almost 250 years after the corporate was based by German cobbler Johann Adam Birkenstock.

“The very best factor for the model could be staying household owned, however throughout the household there have been so many issues, so we go for the second-best choice and that is to be public and provides the model again to the folks,” Reichert mentioned throughout the firm’s IPO.

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