Birkenstock shares plunged more than 15% on Thursday after the sandal maker missed quarterly profit expectations on a global expansion plan that hit its margins.

The Germany-based company reported an adjusted profit per share of 54 cents, below LSEG analysts expectations of 58 cents.

The retailer reported revenue of $624.6 million, up 19% since last year but slightly below estimates of $625.6 million.

Some of the Barbie bounce from last year may also have dissipated and clearly some shoppers are becoming more cautious, Susannah Streeter, Hargreaves Lansdowns head of money and markets, said. Even so, this does not look set to be the start of a downbeat chapter. Birkenstock is still alive and kicking in the fashion pack.

Birkenstock attributed the earnings miss to a rapid international expansion plan that temporarily squashed margins.

Birkenstock CEO Oliver Reichert said customers have been moving toward in-store purchases, so the company is focused on multiplying its retail fleet.

The retailer has been opening stores in newer markets like India and Japan to boost sales.

Birkenstock has also been building new manufacturing channels and updating its existing facilities, including its new plant in Pasewalk, Germany which began operations last year.

Gross profit margin dropped 220 basis points to 59.5% in the third quarter since the company honed in on production expansion. 

They are investing for future growth and so they have introduced different factories and facilities to ramp up, BMO Capital Markets analyst Simeon Siegel said.

Its revenue grew 15% in the Americas and 19% in Europe. 

Birkenstock has continued to gain market share at major retailers like Nordstrom and Foot Locker as demand stays high for its trendy cork sandals and closed-toe “Boston Clogs.”

We achieved the highest quarterly revenue in our history, driven by unbreakable and growing demand across all segments, channels and categories, Reichert said in a statement. As a Superbrand we are gaining the attention of our key retail partners and their consumers, who are becoming increasingly selective and more intentional in their spending.

The company kept its annual sales and profit forecasts the same.

With Post wires