Birkenstock plc(US:BIRK) Benzinga·2024-12-19 17:56Core 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].