Birkenstock Q1 profit rises on holiday demand; margins hit by FX, tariffs

Overview

• Footwear brand's fiscal Q1 revenue up 11% reported, 18% constant currency, surpassing full-year target

• Net profit for fiscal Q1 rose 151% yr/yr, driven by strong holiday demand

• Adjusted EBITDA margin for fiscal Q1 declined to 26.5% due to currency translation and tariffs

Outlook

• Birkenstock targets 13-15% revenue growth in constant currency over next three years

• Company aims for 30%+ EBITDA margin over next three years

• Birkenstock investing in production capacity to meet consumer demand

Result Drivers

• HOLIDAY DEMAND - Strong holiday demand across all segments and channels drove revenue growth of 18% in constant currency, surpassing full-year target

• B2B GROWTH - B2B revenue grew 18% on a reported basis and 24% in constant currency, supported by strong holiday demand and sell-through

• RETAIL EXPANSION - Company opened nine new own stores during the quarter, expanding its retail footprint to 106 stores

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Birkenstock Holding PLC is $60.00, about 50% above its February 11 closing price of $40.00

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nEQ8915zXa

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