Birkenstock's recent drop in share price offers a chance to invest, thanks to its strong growth, high profit margins, and potential expansion in Asia, especially in China. The company has a consistent growth rate of about 20% and impressive gross margins of around 60%, which is uncommon for consumer goods firms. Although the outlook for FY25 is cautious, Birkenstock's first-quarter results showed a 19% year-on-year revenue increase and solid performance in its B2B sector, highlighting its strong market presence.
Birkenstock Holding plc announced a 19% year-over-year increase in revenue, but the market was disappointed because they kept their full-year forecast at 15%-17%, suggesting a slowdown from last year's 20%. While wholesale growth was strong at 30%, most of it came from existing stores, which raises worries about market saturation; direct-to-consumer growth dropped to 10% from 30% last year. On a positive note, product variety is improving, with closed-toe styles accounting for 50% of revenue, and sales in Asia grew by 47% year-over-year, now representing 13% of total sales.
LONDON, GB / ACCESS Newswire / February 20, 2025 / Birkenstock Holding plc ("BIRKENSTOCK", the "Company" or "we"), (NYSE:BIRK) has released its financial results for the first quarter ending December 31, 2024. The Company experienced a revenue increase of 19% in the first quarter, surpassing its annual forecast of 15-17%, thanks to high holiday demand for its products in all areas and categories.
On Thursday, Birkenstock exceeded Wall Street's revenue predictions for the first quarter, thanks to high demand for its pricey cork sandals and shoes during the holiday season. The German footwear company saw strong sales driven by this seasonal interest.
Germany's top civil court decided on Thursday that Birkenstock sandals, which have changed from a sign of counterculture to a fashionable item, are not considered art and thus do not have copyright protection.
Birkenstock Holding PLC has received new support from CitiGroup analysts following the announcement that Ivica Krolo will take over as chief financial officer. Krolo is set to replace Erik Massmann next month, as stated by the sandal company on Tuesday.
LONDON, UK / ACCESSWIRE / January 10, 2025 / Birkenstock Holding plc ("BIRKENSTOCK" or the "Company") (NYSE:BIRK) has announced that it will release its financial results for the first quarter of fiscal 2025, which ended on December 31, 2024, on Thursday, February 20, 2025, before the US market opens. The Company will also hold a conference call and live webcast for investors at 8:00 a.m.
I prefer stocks that offer "growth at a reasonable price," such as Birkenstock, which has experienced about a 20% increase and strong results in the fourth quarter. Although Birkenstock's gross margins decreased in FY24 because of expanding facilities, they are anticipated to improve in FY25, getting closer to their long-term goals. The company is enhancing production efficiency and raising its average selling price by 8%, which is expected to lead to a yearly increase of up to 50 basis points in adjusted EBITDA.
I give Birkenstock a hold rating because there isn't much room for growth, even though the company has solid fundamentals and a good outlook. Their recent results are strong, showing a 22% year-over-year growth in the fourth quarter of 2024, with high demand in all areas. However, the management's cautious forecast of 15-17% growth for fiscal year 2025 indicates that while they might exceed expectations, the current valuation restricts potential gains.
Dana Telsey, an analyst from Telsey Advisory Group, has maintained an Outperform rating for Birkenstock Holding plc (BIRK) and set a price target of $70.