Aspire Biopharma faces potential Nasdaq delisting after compliance shortfall
On Friday, Bernstein SocGen Group maintained its Market Perform rating on Birkenstock Holding plc (NYSE:BIRK) shares, with a steady price target of $57.00. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward, with price targets ranging from $57.47 to $96.25. The firm’s analysis indicated that Birkenstock’s wholesale sector continues to lead, particularly in the fourth quarter of the 2024 calendar year.
Birkenstock’s revenue for the first quarter of 2025, which spans from October to December 2024, exhibited a significant increase of 19% on a constant currency basis, surpassing consensus estimates by 185 basis points with a total of €362 million. This figure was 2% higher than what analysts had anticipated. The gross margin remained consistent at 60.3%, aligning with the company’s impressive last twelve months gross profit margin of 58.7%. Notably, the adjusted EBITDA margin showed robust growth at 28.2%, marking a year-over-year expansion of 148 basis points and exceeding consensus expectations by 204 basis points. With a market capitalization of $10.38 billion, InvestingPro analysis indicates the company is currently trading near its Fair Value.
The standout performance came from the wholesale division, which saw a remarkable 30% growth on a constant currency basis, beating consensus projections by 1,098 basis points. The direct-to-consumer (DTC) channel, however, lagged behind with a 10% increase on a constant currency basis, falling short of expectations by 703 basis points. This underperformance was mainly attributed to strong holiday demand in both the Americas and EMEA regions. The company maintains strong financial health with a current ratio of 2.84, indicating solid liquidity to support its growth initiatives.
Despite the impressive growth and margin expansion in the first quarter, which exceeded the top end of the forecasted range of 15-17% growth and up to a 50 basis points increase in margins, Birkenstock has chosen to reaffirm its guidance for the full fiscal year 2025. This decision reflects a cautious approach, considering that the year is still in its early stages and the influence of holiday demand in this quarter could be a variable factor. For deeper insights into Birkenstock’s financial health and growth prospects, including 10+ additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, Birkenstock Holding Ltd reported its Q1 FY2025 earnings, surpassing analysts’ expectations with an EPS of €0.18 against a forecast of €0.16. The company also reported a revenue of €362 million, exceeding the expected €355.39 million, marking a 19% year-over-year growth. Despite the positive earnings surprise, Birkenstock’s stock experienced a slight decline. The company continues to expand its presence in new product categories and markets, contributing to its strong financial results. Birkenstock reaffirmed its full-year revenue growth guidance of 15-17%, anticipating balanced growth between B2B and D2C segments. Analysts have highlighted the company’s consistent trend of surpassing earnings estimates, which reinforces investor confidence. The company plans to expand its store count to nearly 100 by the end of the fiscal year and expects to improve its gross margin in the second half of the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.