Though Birkenstock stock is fresh off its worst weekly loss since going public in October 2023, it's still up 11.7% over the last six months. The equity hit an all-time high of $61.83 on June 20, and the $54 level has acted as a floor for the subsequent pullback. In the short-term, BIRK boasts a 15.2% quarter-to-date lead. Shares of footwear retailer Birkenstock Holding PLC (NYSE:BIRK) are 3.9% higher at $56.51 at last glance, following a pair of bull notes. UBS upgraded BIRK to "buy" from "neutral," with a ...

About this content Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup News Service, Gracenot ...

Publicly traded since October, Birkenstock Holding PLC (NYSE:BIRK) is hitting all-time highs today, despite a downgrade from Goldman Sachs to "neutral" from "buy." The firm cited the stock's current valuation, seeing it as "fairly priced." At last check, BIRK was up 0.9% at $59.68, earlier hitting a peak of $60.55. BIRK is up 26% just in the last month, in part due to its 11.7% post-earnings pop in late May. At this point in the week, the stock is on track for its sixth consecutive weekly gain. The equity c ...

Core Viewpoint - Birkenstock is experiencing significant growth, particularly in Asia, and is expected to continue this momentum with a strong product portfolio and effective marketing strategies, despite some margin pressures due to expansion costs [5][9][12]. Financial Performance - For Q2 fiscal 2024, Birkenstock reported revenue growth of 22% year-over-year to €481 million, with constant currency growth of 23% [14]. - The company raised its full-year revenue guidance to €1.77-1.78 billion, reflecting a growth rate of 20% year-over-year in constant currency, up from a previous estimate of 17-18% [12][13]. - Adjusted EBITDA margins fell to 33.7%, down 470 basis points year-over-year, but nominal adjusted EBITDA grew by 7% [18]. Growth Drivers - Birkenstock's growth trajectory is particularly strong in Asia, with revenue increasing at a rate of 41% year-over-year, and direct-to-consumer (DTC) revenue growing by 32% year-over-year [18]. - The company has a broad product portfolio, including sandals, shoes, and accessories, catering to various price points and demographics [5]. - The average U.S. consumer owns 3.6 pairs of Birkenstocks, indicating strong brand loyalty and engagement [5]. Market Position and Strategy - Birkenstock's marketing strategy relies heavily on word-of-mouth and organic channels, which has proven effective in attracting new customers [5]. - The company is expanding its retail footprint and focusing on under-penetrated markets like China, which is expected to drive future growth [5][9]. - The introduction of closed-toe shoes, particularly clogs, has increased their sales mix from 16% to 25% year-over-year, showcasing product innovation [18]. Challenges and Considerations - The company faced margin pressures due to manufacturing capacity expansion and one-time inflation bonuses, which contributed to a decline in gross margins to 56.3%, down 320 basis points year-over-year [18]. - Despite these challenges, the overall outlook remains positive, with more growth opportunities than risks identified [9][10].

Key Points Birkenstock Holding plc NYSE: BIRK delivered a stellar earnings report, and BIRK stock continues to soar as the broader market reprices equities in anticipation of higher-for-longer interest rates amidst persistent inflation. Birkenstock Today -0.30 (-0.51%) 52-Week Range $35.83 ▼ $59.48 Price Target $52.37 Add to Watchlist BIRK Birkenstock $58.43 Neither seems to be an issue for the luxury footwear maker known for its iconic sandals. The company reported earnings per share of 44 cents on revenue ...

Group 1 - Birkenstock's shares reached all-time highs following the announcement of strong financial results for Q2 2024, with a stock increase of 12% by market close [1] - The company reported record revenue of 481 million euros (approximately $521 million) in Q2, reflecting a year-over-year growth of 22% [2] - Despite a decline in gross margin to 56% from nearly 60% in the previous year, management anticipates returning to a 60% gross margin in the medium term, which reassured investors [3] Group 2 - Management revised its full-year revenue growth expectation from 17%-18% to 19%, contributing to the stock's surge [4] - Since going public in late 2023, Birkenstock has demonstrated impressive results, with a price-to-sales valuation of about 6, which is considered high for a shoe company, but justified by strong profit margins and ongoing growth [5] - The fastest growth is observed in Asia, the Middle East, and Africa, with a 42% increase in Q2, indicating significant expansion potential as these regions currently represent only 11.5% of the business [6]

Key Takeaways Birkenstock set a record for second-quarter sales as demand for its footwear jumped in all categories and regions. The company's earnings and revenue exceeded forecasts, and it raised its full-year outlook. The news sent Birkenstock shares to an all-time high. Shares of Birkenstock Holding Plc (BIRK) jumped to an all-time high Thursday when the maker of fashion footwear posted record second-quarter revenue and boosted its guidance on strong demand across all its segments. The company known for ...

Financial Data and Key Metrics Changes - The company achieved a revenue growth of 23% year-over-year, reaching EUR481 million in the second quarter of fiscal 2024, marking the highest revenue level for this quarter in the company's history [41][72] - Adjusted EBITDA was EUR162 million, up 7% compared to the same quarter last year, with an adjusted EBITDA margin of 33.7%, down 470 basis points from the prior year [31][72] - Adjusted net profit increased by 3% to EUR77 million, with adjusted EPS remaining flat at EUR0.41 due to higher general and administrative costs [31][72] Business Line Data and Key Metrics Changes - Revenue from the top-five core silhouettes grew over 20%, indicating strong performance in the classic product lines [26][41] - The DTC channel grew by 32% year-over-year, while B2B revenue increased by 20%, demonstrating robust demand across both channels [25][72] - Closed-toe silhouettes saw a penetration increase of over 25%, up 900 basis points from the prior year, with significant growth in premium offerings [26][28] Market Data and Key Metrics Changes - The Americas region experienced a revenue increase of 21%, with DTC growth outpacing B2B growth [44][72] - APMA was the fastest-growing segment, with a revenue growth of 42%, driven by both volume and ASP increases [46][72] - In Europe, revenue grew by 21%, significantly outperforming the overall retail market, with closed-toe silhouettes growing over 80% [28][72] Company Strategy and Development Direction - The company is focused on expanding its membership program, which has seen a 40% growth, to enhance customer loyalty and engagement [41][96] - The strategy includes disciplined distribution and a focus on premium products to drive ASP growth, with a commitment to maintaining brand equity [50][72] - The company is raising its fiscal 2024 revenue growth forecast to 20% on a constant-currency basis, reflecting confidence in sustained demand [24][50] Management's Comments on Operating Environment and Future Outlook - Management noted that despite a challenging consumer environment, the brand's strength is reflected in strong sales and demand across all segments [30][41] - The company is optimistic about the second half of the year, with no current indicators suggesting a slowdown in growth [77][96] - Future pricing strategies will be evaluated to offset inflationary pressures while maintaining consumer demand [67][103] Other Important Information - The company opened six new retail stores in the second quarter, bringing the total to 57, with strong performance from new locations [25][81] - Inventory levels were at EUR651 million, approximately 40% of revenue, down from 44% in the previous year, indicating effective inventory management [73][72] - The company is investing in production capacity expansion, with capital expenditures totaling EUR17 million in the second quarter [73][72] Q&A Session Summary Question: Can you elaborate on the brand's continued global momentum? - Management expressed confidence in maintaining a revenue growth forecast of around 20% for the full year, consistent with a long-term growth trend [77] Question: How is the sandal business performing since the end of the quarter? - The sandal business has shown strong momentum, with significant sell-through rates and a transition towards premium products [59] Question: What is the outlook for gross margins and production facility optimization? - Management indicated that 2024 is a transition year, with expectations for improved margin absorption starting in 2025 as production facilities become more efficient [86][72]

| --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | 1,609 | | 1,299 | | | | | | 483 | | 502 | 02 | --- | --- | --- | |----------------------------------------|-----------|-------| | Operating Cash Flow | FY23 \n57 | FY24 | | t/o: Funds from operations | 149 | | | t/o: Changes in working capital | (91) | | | Investing Cash Flow | (25) | | | Financing Cash Flow | (29) | | | t/o: Net IPO proceeds | — | | | t/o: Repayment of loans and borrowings | (2) | | | t/o: Cash interest ...

Investors interested in stocks from the Shoes and Retail Apparel sector have probably already heard of Skechers (SKX) and Birkenstock (BIRK) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earning ...