Birkenstock Holding soared Thursday, breaking out above a buy point after reporting fiscal second-quarter earnings and revenue along with hiking its full fiscal year view.
The popular German sandal and shoemaker announced Thursday Q2 earnings of 0.38 euro ($0.41) per share and sales totaling 481 million euros. The company's EPS and revenue grew 41% and 23%, respectively, compared to a year earlier.
Birkenstock reported its earnings increase was primarily due to "strong consumer demand supported by new production capacity." The company also opened six new owned stores, bringing its total number of retail stores to 57, in Q2.
The shoe manufacturer added that in its Americas segment consumer demand drove record sales in Q2.
"In a relatively flat U.S. consumer market, Birkenstock delivered constant currency revenue growth of 21% in the second quarter," the company said.
Birkenstock also raised its fiscal 2024 guidance Thursday, expecting revenue of 1.77 billion-1.78 billion euros, up from its prior guidance of 1.74 million-1.76 billion euros. The brand also now forecasts adjusted EBITDA of 535 million-545 million euros, up from its previous prediction of 520 million-530 million euros.
Birkenstock Stock Eyes Buy Point
Shares of Birkenstock jumped 11.8% to 55.88 during market trade on Thursday, breaking out above a cup-base buy point of 55. On Wednesday, BIRK shares advanced 1.7% to 49.99. Ahead of Thursday trade, BIRK stock was up 11.7% in May.
Birkenstock began trading on the New York Stock Exchange on Oct. 11, 2023. On that day, shares closed at 40.20, after the company priced its initial public offering at 46.
Meanwhile, other footwear stocks are also showing signs of strength amid strong earnings of their own in recent weeks.
Deckers Outdoor is up 3% this week and has surged 30% in May. Roger Federer-backed On Holding has gained more than 34% in May while Crocs is up 23%. Skechers has advanced around 5.7% this month.
Birkenstock stock has an 85 Composite Rating out of a best-possible 99. BIRK shares also have a 72 Relative Strength Rating and a 25 EPS Rating.
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