The recent pricing for BIRK has been established in the range of $51.50 to $53.50. Goldman Sachs and JPMorgan have taken on the role of joint book-running managers for this offering, guiding the process and managing the allocation of shares.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Birkenstock Holding PLC (BIRK, Financial) is $69.94 with a high estimate of $82.12 and a low estimate of $56.60. The average target implies an upside of 28.80% from the current price of $54.30. More detailed estimate data can be found on the Birkenstock Holding PLC (BIRK) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Birkenstock Holding PLC's (BIRK, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
BIRK Key Business Developments
Release Date: May 15, 2025
- Revenue: EUR574 million, up 19% year over year on a reported basis and 18% in constant currency.
- Gross Margin: 57.7%, up 140 basis points year over year.
- Adjusted EBITDA: EUR200 million, up 23% year over year, with a margin of 34.8%, up 110 basis points.
- Adjusted Net Profit: EUR103 million, up 33% year over year.
- Adjusted EPS: EUR0.55, up from EUR0.41 a year ago.
- Cash and Cash Equivalents: EUR235 million at the end of the quarter.
- Inventory to Sales Ratio: 36%, down from 40% in Q2 2024.
- Net Leverage: 1.8 times as of March 31, 2025.
- Store Count: 77 owned stores, with six new stores added during the quarter.
- Americas Revenue Growth: 23% in reported currency and 20% in constant currency.
- EMEA Revenue Growth: 12% year over year.
- APEC Revenue Growth: 30%, with China more than doubling in revenue year over year.
- Capital Expenditures: EUR21 million during the quarter, on track for EUR80 million for the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Birkenstock Holding PLC (BIRK, Financial) reported a record EUR574 million in revenues for the second quarter, marking a 19% increase year over year.
- The company achieved a gross margin of 57.7%, up 140 basis points from the previous year, driven by better absorption of costs and favorable currency translation.
- Birkenstock's D2C channel showed strong growth, with a 25% increase in its membership base, reaching over 10 million loyal members.
- The APEC region was the fastest-growing segment, with a 30% increase in revenue, driven by strong growth in the D2C channel and strategic partnerships.
- The company is on track to expand its retail presence, aiming for 100 owned stores by the end of the fiscal year, with 77 stores currently in operation.
Negative Points
- The company faces potential headwinds from tariffs and foreign exchange fluctuations, which could impact growth and margins in the second half of the year.
- Despite strong performance, the third quarter is expected to be the slowest growth quarter due to the seasonal mix of products.
- General administration expenses increased by 150 basis points year over year, primarily due to higher IT expenses related to ERP conversion.
- The company is experiencing increased competition in the market, which may require strategic pricing adjustments to maintain its competitive edge.
- Birkenstock's reliance on European manufacturing and materials could pose risks if there are disruptions in the European supply chain.