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On Tuesday, William Blair reaffirmed their positive stance on Birkenstock Holding plc (NYSE:BIRK), maintaining an Outperform rating on the company’s shares. The firm’s analysts highlighted Birkenstock’s robust performance in the fiscal first quarter, which ended in December, noting a strong holiday season that was observed across all regions. This optimistic view aligns with the broader analyst consensus, as InvestingPro data shows four analysts have recently revised their earnings estimates upward for the upcoming period. According to their projections, Birkenstock is expected to meet the high end of its full-year revenue growth guidance, which was previously issued on December 18, aiming for an increase of 15% to 17%.
The analysts at William Blair anticipate that this revenue growth will lead to an adjusted EBITDA increase of 16%, surpassing the consensus estimate of 12%. They attribute the expected growth to a high-teens rise in wholesale channels and a mid-teens increase in direct-to-consumer (DTC) sales. This projection builds on Birkenstock’s impressive track record, with InvestingPro showing a strong revenue growth of 21% over the last twelve months and robust gross profit margins of 59%. The firm’s outlook is based on the performance of different geographical regions, with predictions of high-teens growth in the Asia-Pacific (APAC) and the Americas, as well as mid-teens growth in Europe, the Middle East, and Africa (EMEA).
This positive assessment from William Blair suggests that Birkenstock is on track to achieve its financial targets for the year, driven by strong sales across its various distribution channels and key markets. The company’s ability to maintain momentum during the critical holiday season appears to be a significant factor in the firm’s favorable rating.
Investors and market watchers will likely keep a close eye on Birkenstock’s upcoming financial reports, with the next earnings announcement scheduled for February 20, to see if the company indeed meets or exceeds the growth projections outlined by William Blair. The firm’s continued confidence in Birkenstock’s performance underscores the company’s potential for sustained growth in the competitive footwear industry. For deeper insights into Birkenstock’s valuation and growth metrics, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of the subscription, along with 10+ additional ProTips and extensive financial metrics.
In other recent news, Birkenstock Holding plc has been making waves in the financial sector. Bernstein SocGen Group has raised Birkenstock’s stock target to $57.00, citing a rally in the luxury goods sector and stronger-than-expected revenue growth in the company’s fourth-quarter results. They have also revised their financial projections for Birkenstock’s fiscal year 2025 earnings per share (EPS) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $1.68 and $647 million, respectively.
In addition, Baird has reaffirmed its Outperform rating and a $72.00 price target for Birkenstock, following the appointment of a new Chief Financial Officer (CFO), Ivica Krolo. This leadership transition is seen as a strategic move, ensuring continuity in the company’s financial leadership. Citi analysts have also maintained their Buy rating on Birkenstock with a steady price target of $65.00, interpreting the CFO transition as a sign of the company’s evolution from a family-owned business to a publicly traded entity.
BMO Capital Markets has increased Birkenstock’s price target from $60.00 to $70.00, citing robust fourth-quarter performance and positive future guidance. The company’s management has projected currency constant (CC) revenue growth of 15-17% and gross margins are anticipated to approach the long-term target of around 60%. Lastly, Bernstein has reaffirmed its Market Perform rating on Birkenstock, maintaining a $52.00 price target for the company’s shares. They noted that the negative impact on gross margins from the company’s capacity expansion is expected to lessen as utilization rates increase, projecting that by the third quarter of 2026, the impact on gross margins will be negligible.
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