15-05-2025
Birkenstock Stock Soars on Strong Results, Outlook
Birkenstock Holdings topped fiscal second-quarter earnings and revenue forecasts as sales increased in all its markets.
The Germany-based maker of fashion footwear saw strong demand in the Americas and got a boost from new store openings in the Asia-Pacific region.
Birkenstock said its business model gives it an advantage over rivals with new tariffs of Birkenstock Holdings (BIRK) surged more than 5% Thursday as the fashion footwear manufacturer posted better-than-expected results and raised its guidance as sales were up in all its markets, and it sees an advantage over rivals in the new tariff environment.
The Germany-based sandals maker reported fiscal second-quarter adjusted earnings per share of 0.55 euros ($0.62) on revenue that rose 19% year-over-year to 574.3 million euros ($643.3 million). Analysts surveyed by Visible Alpha expected EUR0.53 and EUR566.3 million, respectively.
Sales in the Americas increased 23% to EUR312.5 million as both business-to-business (B2B) and direct-to-consumer (DTC) sales grew by "a strong double-digit pace." They climbed 12% to EUR212.8 million in Europe, Middle East, and Africa on digital and retail demand. In the Asia-Pacific region, sales jumped 30% to EUR47.8 million as it opened new stores.
CEO Oliver Reichert said that "the tariff situation may create a unique shift in consumer behavior in the footwear category with a split between the few brands, like Birkenstock, who manage strong brand equity through relative scarcity and those who distribute their products with less discipline and pricing integrity."
The company raised its full-year adjusted EBITDA margin outlook to 31.3% to 31.8%, up from its previous estimate of 30.8% to 31.3%. It explained that translated into an adjusted EBITDA range of EUR660 million to EUR670 million, 19% to 21% higher than in fiscal 2024.
The news sent Birkenstock Holding shares into positive territory for the year.
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