Birkenstock Holding (NYSE:) saw its shares rise more than 12% at market open Thursday after the German shoemaker reported second-quarter earnings and revenue that beat analyst expectations and raised full-year expectations.
The company’s earnings per share (EPS) for the quarter came in at EUR 0.38, ahead of analyst estimates of EUR 0.35. Turnover increased to EUR 481.2 million, also above the consensus expectation of EUR 465.4 million.
Birkenstock’s adjusted EBITDA amounted to EUR 162.3 million, better than the EUR 145.8 million expected by analysts.
Most notably, Birkenstock revised its fiscal 2024 revenue forecast to 1.77 billion to 1.78 billion euros, compared to the consensus estimate of 1.75 billion euros. The new revenue forecast assumes year-on-year growth of 20%, compared to the previous indicative range of 17%-18%.
In addition, Birkenstock now expects 2024 adjusted EBITDA to be between EUR 535 million and EUR 545 million, up from its previous guidance of EUR 520 million to EUR 530 million.
The company also reiterated its mid- to long-term profitability targets, targeting a gross profit margin of approximately 60% and an adjusted EBITDA margin of more than 30%.
“We are encouraged to see an indicative increase in the run-up to the peak season, indicating that demand remains
high, reflecting the company’s confidence that its new production facilities are beginning to ramp up to meet its growth ambitions,” Evercore ISI analysts said in a post-earnings note.
“With high structural margins to defend the P&L against any macro pressures that might emerge – and 220 basis points on the front
Loaded with GM and EBITDA margin investments in the second quarter associated with the new production facilities, F2Q is good evidence that BIRK should be able to deliver a solid combination of growth and expanding margins for several years.”
Meanwhile, analysts at Goldman Sachs said, given that this is BIRK’s first fiscal Q2 print, they expect some variations in quarterly results compared to consensus expectations “as the market learns more about the phasing of investments through the year, especially considering the seasonality of the business.”
