Profile
Sector:
Consumer CyclicalIndustry:
Footwear & AccessoriesCountry:
United KingdomIPO:
11 October 2023Next earnings report:
17 January 2025Last dividends:
N/ANext dividends:
N/APrice
after hours | Wed, 20 Nov 2024 21:06:43 GMTDividend
Analysts recommendations
Institutional Ownership
BIRK Latest News
Trendy shoe brands such as Hoka, On and Birkenstock are taking a page out of luxury's playbook.
Investors need to pay close attention to Birkenstock Holding PLC (BIRK) stock based on the movements in the options market lately.
Birkenstock is expanding into untapped Asian markets and emphasizing sustainability, creating strong growth potential and differentiation from competitors. Financial performance has been robust, with significant revenue and EBITDA growth, demonstrating resilience in a challenging economic environment. My DCF analysis indicates the stock is undervalued, with a potential 67.1% upside, supporting a "BUY" recommendation.
Birkenstock didn't grow direct-to-consumer revenue as much as investors hoped, which modestly affected sales and profits. The company is still setting records and has great margins, so it's worth paying attention to for now.
Birkenstock shares fell over 20% post-lackluster Q2 results, but I recommend buying the dip due to strong growth prospects, especially in Asia. Despite weaker-than-expected near-term growth, Birkenstock maintains its full-year outlook and offers a more reasonable valuation at current share prices near $50. Birkenstock's high gross margins and double-digit revenue growth, particularly in under-penetrated Asian markets, present an attractive long-term investment opportunity.
Birkenstock's Q3 2024 showed an impressive 19% YoY revenue growth, but the stock price dropped 20% due to a revenue and earnings miss. Despite strong performance, high valuations and fashion risk make Birkenstock's stock inherently risky, leading me to maintain a Hold rating. The company's shift from DTC to B2B impacted gross margins, but management's guidance of 20% topline growth and 30% EBITDA margins remains intact.
Birkenstock NYSE: BIRK has been on a strong run since going public in October 2023. Shares were up 54% prior to the release of its fiscal Q3 earnings on Aug. 29.
Birkenstock's shares trade at a very high valuation despite decelerating revenue growth, contracting gross profit margins, and insiders selling. The company's third-quarter results missed revenue and profit expectations, and forward guidance was weak. Birkenstock's strategy of creating artificial scarcity is risky and could backfire, giving competitors an opportunity to capture unmet demand.
The company has focused on expanding its retail fleet and boosting production, which squashed margins.
Birkenstock delivered financial results that met management's guidance, which means its guidance for the year is unchanged. The stock is expensive, and investors are taking profits.
What type of business is Birkenstock Holding?
Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc operates as a subsidiary of BK LC Lux MidCo S.à r.l.
What sector is Birkenstock Holding in?
Birkenstock Holding is in the Consumer Cyclical sector
What industry is Birkenstock Holding in?
Birkenstock Holding is in the Footwear & Accessories industry
What country is Birkenstock Holding from?
Birkenstock Holding is headquartered in United Kingdom
When did Birkenstock Holding go public?
Birkenstock Holding initial public offering (IPO) was on 11 October 2023
What is Birkenstock Holding website?
https://www.birkenstock-holding.com
Is Birkenstock Holding in the S&P 500?
No, Birkenstock Holding is not included in the S&P 500 index
Is Birkenstock Holding in the NASDAQ 100?
No, Birkenstock Holding is not included in the NASDAQ 100 index
Is Birkenstock Holding in the Dow Jones?
No, Birkenstock Holding is not included in the Dow Jones index
When was Birkenstock Holding the previous earnings report?
No data
When does Birkenstock Holding earnings report?
The next expected earnings date for Birkenstock Holding is 17 January 2025