* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Friday, July 18, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Theater at Santa Fe’s San Isidro Plaza will be converted into IMAX, family entertainment venue – Santa Fe New Mexican

    Santa Fe’s San Isidro Plaza Theater Transforms into Exciting IMAX Family Entertainment Venue

    B&B Theatres will open massive entertainment complex in Texas – The Business Journals

    B&B Theatres will open massive entertainment complex in Texas – The Business Journals

    Rough times for broadcast networks illustrate changing media landscape – New Haven Register

    Broadcast Networks Confront Turbulent Times in a Rapidly Changing Media Landscape

    Black River Entertainment Adds Traci Hite As Director Of Promotion, Southeast – MusicRow.com

    Black River Entertainment Welcomes Traci Hite as New Director of Southeast Promotion

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Simpson College to purchase medical simulation technology with grant funds – Iowa Capital Dispatch

    Simpson College to purchase medical simulation technology with grant funds – Iowa Capital Dispatch

    SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

    SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

    Victorville’s new gunfire-detecting technology already making strides, city says – NBC Los Angeles

    Victorville’s New Gunfire-Detecting Technology Is Already Making a Difference, City Officials Say

    Guest columnist: China cutting corners on technology – The State Journal

    China’s Rapid Tech Advances Spark Worries About Cutting Corners

    Sentrycs’ Cyber Over RF technology integrated into Rafael’s combat-proven Drone Dome system – Defence Industry Europe

    Sentrycs’ Cyber Over RF Technology Boosts Rafael’s Battle-Tested Drone Dome System

    Nordic Air Defence raises $3 million to expand operations and advance drone defence technology – Defence Industry Europe

    Nordic Air Defence Lands $3 Million to Transform Drone Defense and Supercharge Operations

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Theater at Santa Fe’s San Isidro Plaza will be converted into IMAX, family entertainment venue – Santa Fe New Mexican

    Santa Fe’s San Isidro Plaza Theater Transforms into Exciting IMAX Family Entertainment Venue

    B&B Theatres will open massive entertainment complex in Texas – The Business Journals

    B&B Theatres will open massive entertainment complex in Texas – The Business Journals

    Rough times for broadcast networks illustrate changing media landscape – New Haven Register

    Broadcast Networks Confront Turbulent Times in a Rapidly Changing Media Landscape

    Black River Entertainment Adds Traci Hite As Director Of Promotion, Southeast – MusicRow.com

    Black River Entertainment Welcomes Traci Hite as New Director of Southeast Promotion

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Simpson College to purchase medical simulation technology with grant funds – Iowa Capital Dispatch

    Simpson College to purchase medical simulation technology with grant funds – Iowa Capital Dispatch

    SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

    SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

    Victorville’s new gunfire-detecting technology already making strides, city says – NBC Los Angeles

    Victorville’s New Gunfire-Detecting Technology Is Already Making a Difference, City Officials Say

    Guest columnist: China cutting corners on technology – The State Journal

    China’s Rapid Tech Advances Spark Worries About Cutting Corners

    Sentrycs’ Cyber Over RF technology integrated into Rafael’s combat-proven Drone Dome system – Defence Industry Europe

    Sentrycs’ Cyber Over RF Technology Boosts Rafael’s Battle-Tested Drone Dome System

    Nordic Air Defence raises $3 million to expand operations and advance drone defence technology – Defence Industry Europe

    Nordic Air Defence Lands $3 Million to Transform Drone Defense and Supercharge Operations

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Should you buy the dip on Birkenstock?

March 1, 2024
in Business
Should you buy the dip on Birkenstock?
Share on FacebookShare on Twitter

One of the biggest IPOs of 2023, Birkenstock Holding (NYSE:BIRK), reported solid fiscal first-quarter results for its initial quarter as a public company. However, its share price immediately began dropping in the aftermath.

Founded in Germany in 1774 and now based in London, the over-200-year-old sandal maker saw its stock price plummet as much as 11% in pre-market trading on Thursday, tumbling to around $45 per share.

By mid-afternoon Eastern time, the share price was still down by about 8% on the day to $47 per share, but did that earnings report warrant such a drop? Let’s take a look at Birkenstock’s results to see if the decline in price represents a buying opportunity.

Record revenue in Q1

Birkenstock posted solid results for its fiscal first quarter, which ended on Dec. 31. The iconic sandal maker, which had been family-owned until 2021, saw its revenue increase 26% year over year to €303 million — a new record.

In fact, Birkenstock’s sales were up across the board, jumping 19% in the Americas, 33% in Europe, and 51% in the APMA (Asia Pacific, Middle East, and Africa) region. These numbers topped analysts’ estimates, which called for €287 million in revenue.

The company’s revenue rose on increased capacity, higher demand and sales at higher prices due to inflation. One of the more promising developments in the quarter was the continued growth of Birkenstock’s direct-to-consumer (DTC) sales, which it has been focused on expanding.

DTC sales refer to online sales through its website or sales at one of its 45 Birkenstock stores around the world. DTC sales were up 30% in the quarter on a constant currency basis, and DTC penetration rose 100 basis points to 53%. B2B sales, referring to sales through other retailers, also rose 22% in the quarter.

The company’s stock price may have dropped on earnings numbers that met but didn’t exceed expectations. Birkenstock actually notched a net loss of $7.1 million in the quarter, although it was better than the $9.2 million net loss in the same quarter a year ago.

On an adjusted basis excluding costs related to the IPO, certain transactions, relocation, and unrealized gains and losses, the firm had $16.7 million in net income, or 9 cents per share. This was down from $26.5 million the same quarter a year ago but in line with what analysts had expected.

Perhaps investors were anticipating an earnings beat, or maybe they were concerned about higher expenses or the decrease in the EBITDA (earnings before interest, taxes, depreciation, and amortization) margin to 26.9% from 29.1%.

Should they be?

Should you buy the dip?

The swift and somewhat severe response to Birkenstockʻs earnings report seems a bit overdone and perhaps even nothing more than a knee-jerk reaction to an overall solid report.

As CEO Oliver Reichert explained, the higher expenses stem from Birkenstock’s move to increase its capacity to handle rising sales and demand as it looks to expand with new stores in more markets.  

“Given our engineered distribution model, demand continues to outpace supply in all regions, channels, and categories,” Reichert said in the earnings release. “As previously communicated, our strategic investments into future growth are having a planned, temporary impact on our profitability. However, in the medium-term, we are confident we will continue to deliver on our objectives of a gross profit margin over 60% and an adjusted EBITDA margin in the low thirties percent.”

Birkenstock reiterated its outlook for fiscal 2024, guiding for a gross profit margin of over 60% in 2024 and an adjusted EBITDA margin in the low-30% range. Perhaps investors were hoping for an improved outlook over past projections, even though this guidance would indicate improvement in adjusted EBITDA, which is currently at a margin of 26.7%. The gross profit margin is currently at 61%, roughly in line with 2024 guidance.

Birkenstock management seems to be taking the necessary steps to grow this iconic brand, and sales have been robust. However, it may take some time to become consistently profitable, so investors may want to monitor the company’s progress.

While Thursdayʻs sharp dip does bring down the entry price for interested investors, they may want to watch for more guidance or results related to expenses, capacity expansion and earnings to gain greater visibility.

VALUEWALK LLC is not a registered or licensed investment advisor in any jurisdiction.
Nothing on this website or related properties should be considered personalized investments advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security.

VALUEWALK LLC, its managers, its employees, affiliates and assigns (collectively “The Company”) do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above.

The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation.

The Company disclaims any liability in the event any information, commentary, analysis, opinions, advice and/or recommendations provided herein prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/should-you-buy-the-dip-on-birkenstock-202403010530

Tags: BirkenstockbusinessShould
Previous Post

WTI consolidates around $78.00, remains on track to post second straight week of gains

Next Post

Australia RBA Commodity Index SDR (YoY) declined to -11% in February from previous -10.4%

Simpson College to purchase medical simulation technology with grant funds – Iowa Capital Dispatch

Simpson College to purchase medical simulation technology with grant funds – Iowa Capital Dispatch

July 18, 2025
With Myles Garrett and T.J. Watt deals in rearview, it’s time for Cowboys to extend Micah Parsons – Yahoo Sports

With Myles Garrett and T.J. Watt deals in rearview, it’s time for Cowboys to extend Micah Parsons – Yahoo Sports

July 18, 2025
Ecology proposes to fund 102 clean water projects across the state – Department of Ecology State of Washington (.gov)

Ecology to Fund 102 Clean Water Projects Across the State

July 18, 2025
Connecticut science teacher makes Guinness Book of World Records for nearly 55-year career – CT Insider

Connecticut science teacher makes Guinness Book of World Records for nearly 55-year career – CT Insider

July 18, 2025
Dinosaur fossil found underneath a Denver museum’s parking lot – CNN

Dinosaur fossil found underneath a Denver museum’s parking lot – CNN

July 18, 2025
The best lifestyle change to improve heart health? Quitting smoking – UKNow

Transform Your Heart Health: Quit Smoking Today for Lasting Benefits!

July 18, 2025
For one hour, investors got a taste of a new world where the Fed is run by a ‘stooge’—and they hated every minute of it – Fortune

For one hour, investors got a taste of a new world where the Fed is run by a ‘stooge’—and they hated every minute of it – Fortune

July 18, 2025
Ukraine Reshuffles Cabinet With Wartime Economy Struggling – Bloomberg.com

Ukraine Overhauls Cabinet Amid Struggles of Wartime Economy

July 18, 2025
Theater at Santa Fe’s San Isidro Plaza will be converted into IMAX, family entertainment venue – Santa Fe New Mexican

Santa Fe’s San Isidro Plaza Theater Transforms into Exciting IMAX Family Entertainment Venue

July 18, 2025
Free physical, mental health resources to be offered at community fair – WIFR

Discover Wellness: Join the Community Fair for Free Physical and Mental Health Resources!

July 18, 2025

Categories

Archives

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
« Jun    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (726)
  • Economy (749)
  • Entertainment (21,635)
  • General (15,959)
  • Health (9,787)
  • Lifestyle (757)
  • News (22,149)
  • People (751)
  • Politics (760)
  • Science (15,967)
  • Sports (21,247)
  • Technology (15,732)
  • World (733)

Recent News

Simpson College to purchase medical simulation technology with grant funds – Iowa Capital Dispatch

Simpson College to purchase medical simulation technology with grant funds – Iowa Capital Dispatch

July 18, 2025
With Myles Garrett and T.J. Watt deals in rearview, it’s time for Cowboys to extend Micah Parsons – Yahoo Sports

With Myles Garrett and T.J. Watt deals in rearview, it’s time for Cowboys to extend Micah Parsons – Yahoo Sports

July 18, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version