I give a hold rating for Birkenstock (NYSE: BIRK ) as I do not see any upside to where the share price is today. On BIRK’s fundamentals, I think it's great, and the outlook is very positive with potential forI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historica ...

Core Viewpoint - Birkenstock Holding plc reported strong financial results for Q4 FY2024, with a revenue increase of 22% year-over-year, indicating robust demand across various product categories, particularly in closed-toe styles and clogs [1][4]. Financial Performance - The company achieved revenue of 456 million euros in Q4 FY2024, reflecting a 22% growth on both reported and constant currency bases [1]. - The sales estimate for FY2024 has been updated to 2.12 billion euros, representing a 17.2% year-over-year increase, which is higher than the previous estimate of 2.09 billion euros (15.9% increase) [6]. - The forecast for FY2024 adjusted EBITDA has been revised to 661.5 million euros, slightly up from the prior estimate of 654.2 million euros [6]. Product Demand and Trends - In the U.S., there is strong demand for clogs, especially for the Boston, Tokyo, and newly introduced Lutry models, positively impacting sales of the Zermatt slipper [2]. - In Europe, lace-up styles and boots are outperforming other categories, while sandals also experienced double-digit growth during the same period [3]. Strategic Outlook - The company anticipates FY2025 revenue growth of 15% to 17% in constant currency, with an adjusted EBITDA margin of 30.8% to 31.3%, reflecting a 50 basis point increase [4]. - Birkenstock's FY2025 outlook aligns with long-term expectations communicated during its IPO process in late 2023, positioning the brand well in a selective consumer market [5]. Market Positioning - Birkenstock is viewed as well-positioned to maintain market success due to its high-end lifestyle branding, which emphasizes comfort and a unique walking experience, creating a competitive edge [5].

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 ...