Telsey Advisory Group analyst Dana Telsey reiterated the Outperform rating on Birkenstock Holding plc BIRK with a price forecast of $70.Yesterday, the company reported fourth-quarter fiscal 2024 results, with revenue growing 22% year over year on a reported and constant currency basis to 456 million euros.The analyst notes that management is observing positive momentum across the entire closed-toe category, ranging from clogs to boots.In the U.S., Birkenstock is experiencing strong demand for clogs, particu ...

As of Dec. 19, 2024, three stocks in the consumer discretionary sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, a ...

Financial Data and Key Metrics Changes - Birkenstock reported a strong fiscal 2024 with a revenue growth of 22% in constant currency, achieving over EUR 1.8 billion in total revenue, surpassing the expected growth of 20% [12][32] - Adjusted EBITDA margin for fiscal 2024 was 30.8%, exceeding expectations, while adjusted net profit for the fourth quarter was EUR 55 million, up 180% year-over-year [13][39] - Gross profit margin for the fourth quarter was 59%, with a full-year gross profit margin of 58.8%, down 330 basis points from the previous year [36][38] Business Line Data and Key Metrics Changes - Revenue from closed-toe silhouettes grew at over twice the rate of the overall group, accounting for about one-third of the business [13][14] - The APMA business segment grew by 42%, nearly doubling the pace of the overall business, while own retail revenue grew over two times the overall business growth [14][27] - The wholesale business increased by 23% in fiscal 2024, with over 90% of growth coming from existing doors [16][17] Market Data and Key Metrics Changes - Revenue in the Americas increased by 19% compared to fiscal 2023, with a notable return to in-person shopping [20][21] - Europe experienced exceptional growth of 21%, driven by improved distribution quality and increased brand awareness [22][24] - The APMA region, while still only 12% of overall revenue, is seen as a significant growth opportunity, with 13 new retail stores added [27][28] Company Strategy and Development Direction - The company aims to balance growth between B2B and DTC channels, with a focus on expanding into under-penetrated product categories and regions [12][18] - Birkenstock plans to open 50% more stores in fiscal 2025, with a disciplined approach to location selection [86] - The company is committed to maintaining brand health and full-price realization while tapping into white space markets, particularly in the APMA region [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of 15% to 17% in fiscal 2025, supported by strong holiday season performance [51][52] - The company anticipates improvements in gross margin as production efficiency increases, targeting a gross margin closer to 60% [43][44] - Management highlighted the importance of disciplined distribution and brand strength, which has allowed them to maintain high full-price realization rates [46][125] Other Important Information - The company will change its segment reporting structure starting in fiscal 2025, merging the Middle East and Africa with Europe to create a new EMEA segment [8][9] - Birkenstock's cash and cash equivalents were EUR 356 million as of September 30, 2024, with a net leverage ratio of 1.8x, below the target of 2.0x [40][42] Q&A Session Summary Question: What is the rationale behind the 15% to 17% growth guidance? - Management believes this pace is appropriate for long-term health, with strong demand expected to continue [51][52] Question: How are DTC and B2B performing in Q1? - DTC is expected to grow, particularly with new store openings, while B2B remains strong with existing partners [55][56] Question: What is the outlook for gross margin in 2025? - Management expects a modest improvement in gross margin, with a clearer trend emerging in the latter half of the year [63][70] Question: How is the closed-toe category performing? - Closed-toe offerings are growing significantly, with expectations for increased share in the future [91][96] Question: What are the growth plans for the APMA region? - The company plans to grow the APMA region at double the speed of mature markets, with a focus on balanced growth across all areas [113][114]

Shares of sandal company Birkenstock (BIRK 5.57%) jumped on Wednesday after the company reported its financial results for its fiscal fourth quarter of 2024, capping off a strong year of growth and profitability. As of 9:45 a.m. ET, Birkenstock stock was up 7% but it had been up as much as 12% earlier in the day.One of the market's oldest companies just keeps growingBirkenstock had a great fiscal 2024. The fiscal year ended on Sept. 30 and during those 12 months, revenue jumped by 21% from its fiscal 2023. ...

Company Performance - Birkenstock Holdings PLC (NYSE:BIRK) shares increased by 8.8% to $61.00, reaching a high of $62.45 after reporting better-than-expected fiscal fourth-quarter earnings and revenue [1] - The popularity of close-toed clogs significantly contributed to the sales boost, prompting Piper Sandler to raise its price target to $70, indicating a 15% premium over the current stock price [1] Stock Activity - The stock is currently trading at its highest level since the record high of $64.78 on August 26, 2023, and has a year-to-date gain of 23.2% [2] - There has been increased activity in the options market, with 4,814 calls and 1,530 puts exchanged, which is 2.3 times the average daily options volume [2] Short Interest - A portion of the stock's price increase may be attributed to short covering, as short interest accounts for 10.8% of the stock's available float, equating to over three days' worth of buying power [3]

Group 1 - Birkenstock reported fourth-quarter results exceeding expectations, with a profit of €52.5 million ($55.1 million) on revenue of €455.8 million ($478.2 million) [2] - The company's full-year revenue reached €1.80 billion, reflecting a 21% growth from fiscal 2023 [3] - Birkenstock anticipates constant-currency revenue growth of 15% to 17% in fiscal 2025, alongside improvements in gross profit margins as new production capacity investments take effect [4] Group 2 - The profit margins for Birkenstock were lower than the previous year, but the company expects improvements in the upcoming year [1][4] - Following the positive earnings report, Birkenstock shares experienced a rise, gaining 5% in premarket trading after a 15% increase earlier in the year [4]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Financial Performance - Birkenstock reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, compared to a loss of $0.16 per share a year ago, representing an earnings surprise of 23.08% [1] - The company posted revenues of $500.9 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 8.38%, and up from $407.65 million in the same quarter last year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $375.55 million, and for the current fiscal year, it is $1.78 on revenues of $2.22 billion [8] - The estimate revisions trend for Birkenstock is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [7] Industry Context - The Shoes and Retail Apparel industry, to which Birkenstock belongs, is currently in the top 16% of over 250 Zacks industries, suggesting a favorable industry outlook [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [6]

BIRKENSTOCK December 18, 2024 BIRKENSTOCK FINANCIAL RESULTS FY24 Certain statements in this presentation (the "Presentation") of Birkenstock Holding plc (together with all of its subsidiaries, the "Company," "Birkenstock," "we," "our," "ours," or "us") may constitute "forward-looking" statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securit ...

Credit Risk and Financial Exposure - Credit risk exposure: As of September 30, 2024, one customer accounted for 13% of the company's consolidated accounts receivables balance, representing a significant credit concentration[263] - Foreign exchange loss: The company reported a foreign exchange loss of €19.6 million for the year ended September 30, 2024, compared to €36.1 million in the previous year[264] - USD-denominated revenues: A 10% depreciation of the USD against the Euro would result in lower revenues of €75.5 million and a corresponding decrease in adjusted EBITDA of €53.9 million based on the 2024 cost structure[266] - Interest rate risk: A 100 basis points increase in market interest rates would negatively impact net profit by €7.1 million for the year ended September 30, 2024[268] - Foreign currency exposure: The company is significantly exposed to fluctuations in the Euro to USD exchange rate, with a large portion of its indebtedness denominated in USD[279] Revenue and Cost Analysis - Revenue distribution: The Americas accounted for 52% of revenues in fiscal 2024, Europe 36%, and APMA 12%, with APMA showing significant growth potential[275] - Cost of sales increase: Cost of sales increased by €177.9 million (31%) to €744.0 million in fiscal 2024, driven by higher unit sales, premium product mix, and capacity expansion[278] - Inflation impact: Despite high inflation in the EU and US, the company saw strong revenue growth in fiscal 2024, reflecting continued demand for its products[273] Product Portfolio and Market Strategy - Product portfolio: The company's five core silhouettes (Madrid, Arizona, Boston, Gizeh, and Mayari) represent the majority of revenues, with over 700 silhouettes in total[274] - The Company's Chief Sales Officer oversees regional operations in the APMA region, including the 1774 collaboration[300] - The Company's Chief Product Officer oversees all product creation, design, and development[300] Board of Directors and Leadership - Alexandre Arnault has been a Director since October 2023, bringing expertise in fashion, retail, technology, and e-commerce[288] - J. Michael Chu has been a Director since April 2021 and serves as the chair of the board, with extensive experience in global investment and management[288] - Ruth Kennedy has been a Director since September 2023, with a background in luxury brand, retail, and hospitality consultancy[288] - Nisha Kumar has been a Director since October 2023, with experience as Chief Financial Officer and Chief Compliance Officer at Greenbriar Equity Group[290] - Anne Pitcher has been a Director since October 2023, with a career spanning luxury fashion and department store sectors[290] - Nikhil Thukral has been a Director since April 2021, focusing on buyout funds and private equity investments[290] - Oliver Reichert has been the Chief Executive Officer since 2013, leading the company's transformation and innovation[290] - Dr. Erik Massmann was appointed Chief Financial Officer in 2023, bringing over 30 years of financial leadership experience[292] - Markus Baum was appointed Chief Product Officer in 2019, responsible for product creation and sustainability development[293] - Klaus Baumann was appointed Chief Sales Officer in 2015, leading the company's creative and innovation hub, BIRKENSTOCK 1774[293] - The Company's Chief Technical Operations Officer oversees more than 4,000 staff members across manufacturing and logistics sites[295] - The Company's Chief Legal Officer manages a global team of lawyers and legal experts, providing guidance on IP law, compliance, and commercial law[295] Compensation and Incentive Plans - Share-based compensation: The company recognized €3.6 million in share-based compensation expense for the year ended September 30, 2024, compared to €65.4 million in the previous year[283] - Aggregate compensation for senior management for the fiscal year ended September 30, 2024 was €19.9 million, with €0.8 million allocated for pension, retirement, or similar benefits[296] - Non-employee directors receive $125,000 per year in cash compensation and an annual equity grant of restricted share units valued at $75,000 under the 2023 Omnibus Incentive Plan[297] - Senior management members are eligible for discretionary annual cash bonuses based on pre-determined performance criteria, including corporate and individual goals[299] - The Company's 2023 Equity Incentive Plan reserves 11,265,925 ordinary shares for issuance, with no more than 11,265,925 shares available for incentive share options (ISOs)[303] - Non-employee directors are limited to receiving awards valued at $750,000 per fiscal year, with exceptions for new directors or those serving in special roles, where the limit increases to $1,000,000[306] - Senior management members, including executive officers, have the opportunity to acquire indirect ownership in the Company through investments in ManCo, a management ownership vehicle[298] - The company has reserved a total of 3,756,511 ordinary shares for issuance under the Employee Share Purchase Plan[312] - The purchase price of ordinary shares under the Employee Share Purchase Plan is 85% of the lower of the fair market value on the first or final trading day of the offering period[314] - Employees are eligible to participate in the Employee Share Purchase Plan if they meet the eligibility requirements, but cannot own 5% or more of the company's total voting power or value[312] - The Employee Share Purchase Plan allows participants to purchase shares through payroll deductions, with the administrator setting the maximum percentage of eligible compensation that can be deducted[312] - The company may adjust the number of shares subject to the Employee Share Purchase Plan for changes in capitalization or corporate transactions[312] - The Employee Share Purchase Plan is designed to align employee interests with shareholders and provide a retention incentive[309] - The company may modify award terms or establish subplans to comply with non-U.S. laws or stock exchange rules[309] - The Employee Share Purchase Plan permits participants to withdraw and receive accrued payroll deductions or exercise their option at the end of the offering period[314] - The company's clawback policy applies to all awards granted under the Equity Plan, allowing for reduction, cancellation, or recoupment[309] - The Equity Plan remains in effect for ten years unless terminated earlier by the board of directors[309] Workforce and Employment - The company employed approximately 7,400 individuals as of September 30, 2024, including 6,200 full-time employees and 930 contingent workers[321] - Full-time employees were distributed as follows: 360 in corporate-owned stores, 190 in distribution (logistics), 4,140 in production, and 1,500 in selling, general, administrative, and other functions[321] - The workforce was 55% female and represented more than 95 nationalities as of September 30, 2024[321] - The company's workforce increased from approximately 6,300 employees in September 2023 to 7,400 employees in September 2024[321] - The company's production sites in Germany employed approximately 4,140 full-time employees as of September 30, 2024[321] Shareholder and Ownership Structure - Entities affiliated with L Catterton owned 135,218,071 ordinary shares, representing 72.0% of the company's outstanding shares as of November 30, 2024[325] - Financière Agache SA owned 10,352,863 ordinary shares, representing 5.5% of the company's outstanding shares as of November 30, 2024[325] - The company's total number of ordinary shares issued and outstanding as of November 30, 2024, was 187,829,202[324] - As of November 30, 2024, the company had 23 shareholders of record, with approximately 98% of outstanding ordinary shares held by 15 U.S. shareholders[329] Tax and Financial Agreements - The total balance of the Tax Receivable Agreement (TRA) liability as of September 30, 2024, amounted to €359.9 million[329] - The company expects to utilize tax attributes created by the pre-IPO owner, MidCo, which will reduce future tax payments[329] - Payments under the TRA are based on 85% of tax savings from U.S. and German tax attributes, with interest accruing at SOFR plus 3.00% per annum[331] - The TRA liability is measured at amortized cost, considering current expected cash flows and the original effective interest rate[329] - The company may be required to make lump-sum payments under the TRA in certain circumstances, such as early termination or changes of control[331] - Restrictions under the TRA could limit the company's ability to obtain financing, potentially affecting working capital and growth[333] Legal and Governance - The company's board of directors consists of seven members divided into three classes serving staggered three-year terms[317] - The audit committee is composed of Ruth Kennedy, Nisha Kumar, and Anne Pitcher, with Nisha Kumar serving as chairperson[319] - The company has entered into employment and indemnification agreements with executive officers and directors[334] - The company has entered into a Registration Rights Agreement with MidCo, allowing MidCo to require the company to register ordinary shares under the Securities Act and pursue underwritten offerings or block trades[335] - MidCo can issue an unlimited number of demand registration requests and the company will bear all fees, costs, and expenses of registrations, excluding underwriting discounts and commissions[335] - The company has entered into a Shareholders' Agreement with MidCo, granting MidCo the right to designate a majority of the board of directors as long as it owns at least a majority of the company's shares[335] - MidCo is entitled to designate a proportional number of directors based on its ownership percentage if it owns less than a majority but at least 5% of the company's ordinary shares[335] - The company is subject to litigation in the ordinary course of business, but no current legal proceedings are expected to have a material adverse effect on its business or financial position[341] - The company may enter into commercial transactions with L Catterton and its portfolio companies, but none of these transactions are expected to be material[338] - No significant changes have occurred in the company's operations since the date of the financial statements included in the Annual Report, other than those described in the report[343] Dividends and Financial Strategy - The company has not declared or paid cash dividends on its ordinary shares and intends to retain all available funds for business development and expansion[342]