Birkenstock Keeps Its Footing, Ups Guidance Despite Global Uncertainty

Telsey Advisory analyst Dana Telsey mainatined an Outperform rating on Birkenstock Holding plc BIRK with a price forecast of $70 following second quarter results released on Thursday.

In U.S. dollars, revenue of $603.62 million beat the street view of $567.17 million, and adjusted EPS of 58 cents exceeded the consensus of 54 cents.

The company now expects FY25 revenue growth to be 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 31.3% to 31.8%.

Birkenstock sustained its strong performance, delivering a solid EBITDA beat driven by revenue growth, Telsey says.

The brand benefited from introducing new versions of classic styles, which boosted purchases and average selling prices (ASPs).

Additionally, Telsey praises the company’s upward revision of annual guidance amid macro and geopolitical uncertainty, while maintaining controlled distribution.

Indeed, consumer sentiment is low. But Telsey adds that BIRK’s high-end lifestyle positioning and unique comfort give it a continued competitive advantage. The analyst now estimates sales of 2.11 billion euro vs. the previous estimate of 2.13 billion.

Also, Telsey raised the adjusted EBITDA estimate to €670 million from €667 million prior vs. earlier consensus of €652 million.

Investors can gain exposure to the stock via Renaissance IPO ETF IPO.

Price Action: Birkenstock shares are down 2.13% at $56.47 at the last check on Friday.

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