I think it's worth noting that the valuation for Deckers stock skyrocketed to an all-time high of 7 times sales in 2024. Historically, it's traded closer to 2 times sales. Its sales have soared in recent years, particularly with the success of its Ugg and Hoka brands. So the excitement was understandable. But there was valuation risk. The valuation quickly came back down as global trade conditions got more complicated. Consider that in the fiscal third quarter of 2025, its most recent quarter, Deckers gener ...

Investors who choose to actively manage their portfolios, picking individual businesses in the process, probably want to beat the market over the long term. To achieve this goal, perhaps it's a good idea to look at past winners. Maybe the good times will continue.Artificial intelligence might be getting all the attention. However, there's one booming footwear stock that has skyrocketed 465% in the past five years (as of May 14). That kind of stellar performance deserves a closer look.Is this the smartest st ...

Core Insights - Birkenstock Holding plc reported better-than-expected second-quarter earnings with revenue growth of 19% year over year to 574 million euros, driven by double-digit unit growth and mid-single-digit growth in Average Selling Price (ASP) [1] - Adjusted EPS increased by 34% year over year to 0.55 euro, with revenue in U.S. dollars reaching $603.62 million, surpassing the street view of $567.17 million [2] - For FY25, the company expects revenue growth at the upper end of its prior guidance of 15% to 17% in constant currency and raised adjusted EBITDA margin by 50 basis points to a range of 31.3% to 31.8% [2] Management Commentary - CEO Oliver Reichert indicated that the tariff situation may lead to a shift in consumer behavior in the footwear category, benefiting brands like Birkenstock that maintain strong brand equity through relative scarcity [3] Stock Performance and Analyst Ratings - Following the earnings announcement, Birkenstock shares fell 1.5% to trade at $56.83 [3] - Analysts have adjusted their price targets for Birkenstock, with Baird raising it from $65 to $70, B of A Securities from $70 to $73, BMO Capital from $70 to $75, and Stifel from $62 to $70, while maintaining their respective ratings [4][8]

Core Insights - Birkenstock Holding plc (NYSE: BIRK) reported Q2 results that exceeded both revenue and earnings estimates, indicating strong performance [1] - The company has raised its guidance for the remainder of the year, suggesting confidence in continued growth [1] Financial Performance - Q2 numbers showed a positive trend, with both top and bottom lines beating market expectations [1] - The specific figures for revenue and earnings were not disclosed in the provided text, but the overall performance was strong enough to warrant an increase in guidance [1] Strategic Outlook - The raised guidance reflects the company's optimistic outlook for future performance, which may attract long-term investors [1]

Financial Data and Key Metrics Changes - The company reported revenues of €574 million for the second quarter, representing a 19% increase year-over-year and an 18% increase in constant currency, exceeding the annual guidance of 15% to 17% [8][18] - Gross margin improved to 57.7%, up 140 basis points year-over-year, driven by better cost absorption and selected price adjustments [19] - Adjusted EBITDA for the quarter was €200 million, up 23% year-over-year, with a margin of 34.8%, an increase of 110 basis points [20] - Adjusted net profit reached €103 million, a 33% increase year-over-year, with adjusted EPS rising to €0.55 from €0.41 [20] Business Line Data and Key Metrics Changes - Revenue growth was balanced between B2B and DTC channels, with B2B up 18% and DTC up 17% in constant currency [10][18] - Closed toe silhouettes revenue grew at twice the rate of the overall group, increasing their share of business by 400 basis points [11] - The DTC channel accounted for 24% of total business, consistent with the prior year [18] Market Data and Key Metrics Changes - In the Americas, revenue increased by 23% in reported currency and 20% in constant currency, with strong growth in both B2B and DTC channels [12] - EMEA region saw a 12% revenue growth, with DTC outpacing B2B growth by 1.5 times [13] - The APAC region was the fastest growing segment, with a 30% increase driven by strong DTC growth [14] Company Strategy and Development Direction - The company aims to expand its retail presence, targeting 100 owned stores by the end of the fiscal year, having opened six new stores in the second quarter [10][11] - The strategy includes tapping into white spaces such as closed toe shoes and expanding in the APAC region [10][14] - The company is confident in its ability to manage inflationary pressures and tariffs due to its vertical integration and European sourcing [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid macroeconomic uncertainties, viewing the situation as an opportunity rather than a risk [7][34] - The company expects to meet or exceed its financial targets for fiscal year 2025, with adjusted EBITDA margin guidance raised to 31.3% to 31.8% [25][29] - Management noted that consumer demand remains strong, with no significant changes observed despite macroeconomic pressures [35][36] Other Important Information - The company ended the quarter with cash and cash equivalents of €235 million and improved its inventory to sales ratio to 36% [21] - Capital expenditures for the quarter were approximately €21 million, with plans to invest around €80 million for the year [21][80] Q&A Session Summary Question: Confidence in outlook despite macro uncertainty - Management views the current situation as an opportunity and is confident in offsetting tariff impacts [34][35] Question: D2C strength and implied top line deceleration - Management acknowledged reduced visibility in the second half but emphasized strong order books and growth in closed toe products [43][44] Question: Plans for tariff mitigation - The company is less exposed to tariffs due to European sourcing and has pricing flexibility without impacting consumer demand [50][52] Question: Gross margin drivers and retail store rollout - Management expects gross margin improvements from better absorption and pricing adjustments, with ongoing retail expansion [58][60] Question: Membership growth and its impact on DTC sales - Membership has grown significantly, contributing to higher average purchases and overall DTC performance [117][132]

Financial Data and Key Metrics Changes - The company reported a record revenue of €574 million for the second quarter, representing a 19% year-over-year increase and an 18% increase in constant currency, exceeding the annual guidance of 15% to 17% [6][15][22] - Gross margin improved to 57.7%, up 140 basis points year-over-year, driven by better cost absorption and selected price adjustments [16][19] - Adjusted EBITDA for the quarter was €200 million, up 23% year-over-year, with a margin of 34.8%, an increase of 110 basis points [17][22] - Adjusted net profit reached €103 million, a 33% increase year-over-year, with adjusted EPS rising to €0.55 from €0.41 [18][22] Business Line Data and Key Metrics Changes - Revenue growth was balanced between B2B and DTC channels, with B2B up 18% and DTC up 17% in constant currency [8][15] - Closed toe silhouettes saw revenue growth at twice the rate of the overall group, increasing their share of business by 400 basis points [9][12] - The DTC channel's growth was supported by investments in online and owned retail stores, with a membership base exceeding 10 million, up over 25% year-over-year [8][15] Market Data and Key Metrics Changes - In the Americas, revenue increased by 23% in reported currency and 20% in constant currency, with strong growth in both B2B and DTC channels [10][12] - EMEA experienced 12% growth, with DTC outpacing B2B growth by 1.5 times [11][12] - The APAC region was the fastest-growing segment, with a 30% increase driven by strong DTC growth [12][13] Company Strategy and Development Direction - The company aims to expand its retail presence, targeting 100 owned stores by the end of the fiscal year, with a long-term goal of 150 stores by 2027 [9][56] - The strategy includes leveraging vertical integration to mitigate tariff impacts and maintain pricing flexibility [20][21] - The company is focused on capturing market share and shelf space, particularly in regions where competitors are struggling [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, viewing the current environment as an opportunity rather than a risk [5][29] - The company anticipates continued strong demand across all product channels and categories, with expectations to meet or exceed financial targets for fiscal year 2025 [22][24] - Management noted that the recent depreciation of the dollar may create headwinds for reported growth and margins in the latter half of the year [21][22] Other Important Information - The company is proactively managing working capital, improving its inventory-to-sales ratio to 36% from 40% year-over-year [19] - Capital expenditures for the quarter were approximately €21 million, with plans to invest around €80 million for the year [19][75] Q&A Session Summary Question: Confidence in outlook despite macro uncertainty - Management views the current situation as an opportunity and is confident in fully offsetting tariff effects, with no changes in consumer demand observed [29][30] Question: DTC strength and implied top-line deceleration - Management acknowledged reduced visibility in the second half due to a heavier DTC mix but emphasized strong order books and continued growth in closed toe products [38][39] Question: Plans for tariff mitigation - The company is less exposed to tariffs due to European sourcing and manufacturing, allowing for pricing flexibility without impacting consumer demand [46][47] Question: Gross margin drivers and future expectations - Management expects gross margin improvements to continue, with better absorption and pricing strategies contributing positively [40][41] Question: Cash flow and uses in the back half of the year - The company prioritizes investments in business growth and debt reduction, with potential for share repurchases considered [74][75] Question: Trends in younger customers and in-person shopping - A global trend of younger consumers preferring in-person shopping was noted, enhancing brand engagement [78] Question: Demand outlook in the back half of the year - Management sees no significant impact on demand from tariffs, maintaining a balance of stock to sales [81][82] Question: Membership growth and its impact on DTC sales - Membership has grown significantly, with members spending 20% more on average, indicating a strong return on investment for marketing efforts [113][129] Question: Pricing strategy and product performance - Consumers are increasingly favoring higher price points, with closed toe products outpacing sandals in growth [131]

Financial Performance Highlights - Revenue increased by 19% to €574 million in Q2 FY25[11], with a constant currency growth of 18%[11] - DTC (Direct-to-Consumer) revenue grew by 19% to €141 million[11], or 17% on a constant currency basis[11] - B2B (Business-to-Business) revenue also increased by 19% to €432 million[11], with a constant currency growth of 18%[11] - Gross profit margin improved by 140 basis points to 57.7% in Q2 FY25[11, 18] - Adjusted EBITDA increased by 23% to €200 million, resulting in a margin of 34.8%[11] - Adjusted net profit rose by 33% to €103 million[11] - Adjusted EPS (Earnings Per Share) increased by 34% to €0.55[11] Regional Performance - Americas revenue increased by 23% to €313 million[14], or 20% on a constant currency basis[14] - EMEA (Europe, Middle East, and Africa) revenue grew by 12% to €213 million[14], both in reported and constant currency[14] - APAC (Asia-Pacific) revenue saw a significant increase of 30% to €48 million[14], both in reported and constant currency[14] Balance Sheet and Cash Flow - Net debt remained stable at 1.8x LTM (Last Twelve Months) Adjusted EBITDA[11, 32] - Trade and other receivables increased to €249 million due to seasonal B2B shipments[30] - Cash flow was impacted by tax payments related to previous years, resulting in a total cash flow of negative €62 million[37]

Core Insights - The rise of Birkenstock shoes, often referred to as "ugly shoes," has become a new favorite among the middle class, with significant social media engagement, including over 1.09 million posts and 1 billion views on Xiaohongshu [1][7] - Birkenstock shoes are characterized by their comfort and functionality, appealing to a generation that prioritizes ease over traditional aesthetics [4][12] - The brand has seen a surge in popularity, with sales figures indicating nearly 24 million pairs sold annually in the UK and a strong presence in the Chinese market, where it has consistently ranked in the top 12 for sales on Tmall [7][5] Market Trends - The trend towards comfort has led to a broader acceptance of casual footwear, with various brands launching their own versions of comfortable sandals and slides, indicating a shift in consumer preferences [19][23] - Birkenstock's market value has skyrocketed, surpassing $10 billion shortly after its IPO, reflecting the brand's strong market position and consumer demand [5][10] - The emergence of a "slouchy old money" aesthetic has made Birkenstock shoes a staple in modern fashion, blending comfort with a sense of understated elegance [18][4] Consumer Behavior - Younger consumers are increasingly rejecting the notion of suffering for beauty, favoring products that offer comfort without compromising style [19][21] - The popularity of Birkenstock shoes is not just limited to casual settings; they are being integrated into various aspects of daily life, from work to outdoor activities, showcasing their versatility [10][16] - Social media has played a crucial role in shaping consumer perceptions, with platforms like Xiaohongshu driving the narrative around Birkenstock as a fashionable yet comfortable choice [1][11]

Core Insights - STARAY is redefining the global perception of Chinese brands through its innovative 3D-printed shoes, showcased in Japan and at the Cannes Film Festival [1][12][11] Company Expansion - STARAY opened its second store in Japan at NambaParks, Osaka, on May 15, 2025, following the debut of a pop-up store and participation in major expos [1][4] - The flagship store in Kitahorie, Osaka, features smart screens displaying real-time operations of 3D printers, enhancing consumer experience [5] Product Innovation - STARAY's shoes utilize a fully lattice hollow structure, providing comfort and functionality for various activities, appealing to both outdoor enthusiasts and office workers [7][8] - The shoes weigh only 190 grams, alleviating foot pressure for commuters who walk an average of 20,000 steps daily [6] Cultural Influence - STARAY's participation as a supporting partner at the "China Night" event during the Cannes Film Festival signifies a shift from product export to cultural dialogue [12][14] - The brand aims to bridge the gap between commerce and civilization by integrating technology with cultural narratives [14][15] Market Strategy - The Japanese market serves as a strategic pivot for STARAY, focusing on building consumer trust through physical store presence [10][11] - The collaboration with the Japanese team reflects a commitment to long-term brand development and cultural resonance [10][14]

Core Viewpoint - IREN Limited is expected to report its third-quarter fiscal 2025 results on May 14, with a consensus estimate of 17 cents per share, a decrease from the previous estimate, and projected revenues of $155.69 million, indicating a significant year-over-year improvement of 186.45% [1][2]. Group 1: Financial Performance Expectations - The fiscal third-quarter performance is anticipated to benefit from increased bitcoin revenues, with reported monthly revenues of $52 million, $43.9 million, and $45.3 million for January, February, and March respectively [3]. - However, the revenue per Bitcoin mined has shown a decline, with March's revenue at $85,012, down from $95,570 in February and $99,789 in January, which may pressure both topline and margins for the upcoming quarter [4]. Group 2: Additional Revenue Streams - AI Cloud services revenues have shown a gradual increase, with $0.8 million in January, $1.2 million in February, and $1.6 million in March [5]. Group 3: Earnings Expectations and Model Insights - According to the Zacks model, IREN Limited currently has an Earnings ESP of -40.00% and a Zacks Rank of 4 (Sell), indicating a lower likelihood of an earnings beat compared to other companies [6].