{"id":38987,"date":"2024-12-18T18:30:35","date_gmt":"2024-12-18T18:30:35","guid":{"rendered":"https:\/\/isafespend.com\/?p=38987"},"modified":"2024-12-18T18:30:35","modified_gmt":"2024-12-18T18:30:35","slug":"birkenstock-results-beat-on-resilient-demand-forecasts-margin-recovery-by-reuters","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=38987","title":{"rendered":"Birkenstock results beat on resilient demand, forecasts margin recovery By Reuters"},"content":{"rendered":"
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By Juveria Tabassum and Helen Reid<\/p>\n

(Reuters) -Birkenstock beat market expectations for fourth-quarter results on robust demand for its pricey footwear and forecast a recovery in margins in fiscal 2025, sending the company’s shares up 7% on Wednesday.<\/p>\n

With fresh styles becoming a priority for consumers, Birkenstock (NYSE:)’s sandals and closed-toe clogs have drawn new customers both at its own stores and at retailers.<\/p>\n

The company bypassed steep discounting trends evident during the holiday shopping season, which Birkenstock executives said was off to a strong start globally.<\/p>\n

“The expansion of ranges into more closed-toe silhouette has helped boost revenue, given that they offer multi-season wear,” Susannah Streeter, head of money and markets at Hargreaves <\/span><\/span> (LON:) Lansdown, said.<\/p>\n

Germany-based Birkenstock’s average selling prices across its product range were up 8% in fiscal 2024, in part due to higher sales of clogs, the company said, adding that closed-toe styles now made up about a third of its business.<\/p>\n

The company has invested in expanding its global store presence and increasing manufacturing capacity this year to meet demand.<\/p>\n

While it led to a 330-basis point drop in gross margins in fiscal 2024, Birkenstock forecast a recovery in margins in fiscal 2025 as it ramps up production from new facilities.<\/p>\n

The company reported fourth-quarter revenue of 455.8 million euros ($478.27 million), compared with the average analyst estimate of 439.2 million euros, according to data compiled by LSEG.<\/p>\n

However, Birkenstock’s forecast for fiscal 2025 revenue to increase between 15% and 17% was below estimates of 17.5% growth.<\/p>\n

“It would appear with this incredibly healthy growth, the company is choosing to adopt a conservative approach that they expect to be able to meet and beat,” BMO Capital Markets analyst Simeon Siegel said.<\/p>\n<\/p>\n

On an adjusted basis, Birkenstock earned 0.29 euro per share beating estimates of 0.26 euro.<\/p>\n

($1 = 0.9530 euros)<\/p>\n<\/p><\/div>\n