Investors in Birkenstock Holding PLC (BIRK) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $20 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It coul ...

I am a financial writer who selects and analyzes high quality stocks with great risk/reward propositions. My universe of stocks covers various industry verticals and geographies. I like to share great ideas and invite meaningful public discourse on various long/short equity ideas. Please follow for in-depth financial analysis and easy-to-read introductions of novel companies and investment propositions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies me ...

When valuations are high, even little things can lead to disappointment. Shares of shoe company Birkenstock (BIRK -1.83%) dropped 15.6% during August, according to data provided by S&P Global Market Intelligence. The stock was actually up close to 8% late in the month before shares plunged on Aug. 29. That was the day the company reported financial results for its fiscal third quarter of 2024. As you might have guessed, investors were let down after looking over the numbers. To be clear, it's not because Bi ...

herstockart The Q2 earnings season is coming to a close, and one major trend that has emerged is a big beating in consumer discretionary names. Across restaurant stocks, food, and retail names, we've seen the impacts of weaker consumer spending starting to color near-term results. Birkenstock (NYSE:BIRK), the German shoemaker, has been one of the unfortunate laggards within this group. After an impressive year-to-date rally, Birkenstock shares have fallen more than 20% after reporting lackluster Q2 results, ...

herstockart Birkenstock's (NYSE:BIRK) Q3 2024 was great, with the company growing impressively behind challenging figures for most peers. Despite this, the stock price collapsed because of a revenue and earnings miss. Like Abercrombie & Fitch (ANF) this earnings season, the BIRK price collapse is a warning against buying a growing business at high valuations. Even when things work great, the stock may collapse. Apart from that price event, the result and the call did not provide much new information. Howeve ...

Birkenstock Today BIRK BIRKENSTO Birkenstock $49.89 -1.01 (-1.98%) 52-Week Range $35.83 ▼ $64.78 Price Target $62.23 Add to Watchlist 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. This significantly outpaced the S&P 500 and the consumer discretionary sector. The Consumer Discretionary Select Sector SPDR Fund NYSEARCA: XLY is up 15% since the company's IPO. Let's examine Birkenstock's operation ...

BalkansCat We wrote an article shortly after Birkenstock Holding plc (NYSE:BIRK) went public where we shared our skepticism about the company's valuation. There is no doubt that they own a valuable brand for which many consumers are willing to pay a premium, but that was already reflected in the share price and then some. Whiles shares are trading at a slightly higher price today, they have significantly underperformed the S&P 500 Index (SPY) on a total retum basis. The company also just disappointed invest ...

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. 3 Birkenstock shares plunged nearly 15% on Thursday after the company reported profit that missed expectat ...

Even after 250 years in business, this company is still setting records. Shares of shoe company Birkenstock (BIRK -16.84%) got knocked down on Thursday after the company reported financial results for its fiscal third quarter of 2024. Most headlines say that the company missed estimates from analysts, but I think this is a weak explanation for what's happening today, as I'll explain. Regardless of the reason why, Birkenstock stock was still down a hefty 16% as of 1 p.m. ET. Birkenstock is right on schedule ...

Financial Data and Key Metrics Changes - Birkenstock achieved a record quarterly revenue of EUR 565 million, reflecting a 19% growth year-over-year on a constant currency basis [18][19] - Gross profit margin for Q3 was 59.5%, down 220 basis points compared to the previous year, primarily due to a shift in mix from D2C to B2B [19] - Adjusted EBITDA for the quarter was EUR 186 million, marking a 15% increase year-over-year, with an adjusted EBITDA margin of 33% [20][21] Business Line Data and Key Metrics Changes - B2B business grew by 23% in constant currency, while D2C business saw a growth of 14% [18][19] - Revenue from closed-toe silhouettes grew more than double the rate of the overall brand, with revenue share increasing by 400 basis points year-over-year [10] - The membership program grew by 36% year-over-year, reaching 6.9 million members, who spend over 25% more per transaction than non-members [9] Market Data and Key Metrics Changes - Revenue in the Americas increased by 15%, with B2B channel growth particularly strong, especially in department stores [11][12] - Europe experienced a 19% growth, with strong performance in countries where Birkenstock replaced distributors with its own distribution [14] - The APMA region was the fastest-growing segment, with a revenue increase of 41%, driven largely by DTC channel growth [16] Company Strategy and Development Direction - The company is focused on expanding into identified white space opportunities, including closed-toe silhouettes and owned retail [6][9] - Birkenstock aims to maintain a disciplined approach to distribution, ensuring supply remains comfortably under demand [9] - The company is committed to achieving a net leverage ratio of 2x by the end of the year and plans to use free cash flow to reduce debt [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's strength and consumer demand, noting that there has been no observed softness in consumer spending [27] - The company confirmed its fiscal year 2024 guidance for total revenue growth of 20% and an adjusted EBITDA margin of 30% to 30.5% [25] - Management highlighted the importance of in-person shopping for the brand, as consumers prefer to see and touch the product [27] Other Important Information - The company opened seven new stores in Q3, bringing the total to 64 owned retail stores worldwide [9] - Cash and cash equivalents increased to EUR 404 million, with total cash flow for the quarter reaching EUR 229 million, up 93% year-over-year [21][22] - Capital expenditures totaled EUR 15 million in Q3, with expectations to remain below EUR 100 million for the fiscal year [22] Q&A Session Summary Question: Insights on unit sales and ASP performance - Management confirmed strong unit sales and an increase in like-for-like ASP, attributing revenue growth to a higher B2B mix [26][27] Question: Future cash use and leverage reduction - Management indicated plans to continue reducing leverage and investing in business expansion while maintaining a strong cash position [31][32] Question: Trends in US consumer demand - Management noted increasing consumer demand for the brand, emphasizing intentional purchasing behavior despite macroeconomic challenges [33] Question: Sell-through performance in B2B business - Management highlighted strong sell-through rates across regions, with traffic to the DTC website remaining robust [34][35] Question: Factory capacity and production constraints - Management confirmed ongoing capacity expansion, with no current constraints on meeting demand [37][38] Question: Current demand trends globally - Management expressed confidence in strong global demand, with positive signals from wholesale partners across categories [40][41] Question: Pricing actions for 2025 products - Management reported encouraging sell-throughs for new product introductions and noted that price increases have not negatively impacted consumer demand [48][51]