Birkenstock is Stock of the Day as it fashions a possible breakout. Birkenstock stock has been finding key support amid rising sales of its trendy cork-footbed sandals.
On top of that, shoe stocks at large are acting well in the current market.
Birkenstock Stock
Shares of the German footwear maker 3.4% on the stock market today toward a 52.12 buy point in a messy eight-week cup base. Weekly trading has been very wide and loose, but has generally held support at the 50-day moving average, according to MarketSmith charts.
Risk-averse investors could use 51.09 as an early entry into Birkenstock stock. That might develop into a handle entry.
The stock rolled over into the base after a 23% prior uptrend. Birkenstock currently trades 4% below the 52.12 cup-base entry.
Last October, Birkenstock made a lackluster stock market debut, following a billion-dollar initial public offering for the almost 250-year-old brand.
In November, shares successfully broke out past a 42.51 buy point from an IPO base, delivering a 17% gain in 15 weeks.
The company's earnings report for its fiscal first quarter is set for Feb. 29.
Birkenstock Earnings
On Jan. 18, Birkenstock posted earnings of 14 cents per share for the fourth quarter, on revenue of $406 million. Earnings missed by a penny while sales beat analyst views, FactSet shows.
In euros, revenue rose 20% in fiscal 2023, driven by a 6% increase in units sold and 14% gain in average selling prices, Birkenstock reported. The company touted "a shift in demand toward premium products and strong pricing power as reflected in a high number of full-price sales."
Despite inflationary pressures on consumers, the "business model proved to be resilient and gained even more momentum" in the final fiscal quarter, Birkenstock said.
For fiscal 2024, which ends in September, analysts expect a 6% EPS increase on a nearly 16% revenue gain, with both set to rise further in 2025.
It's not unusual for Birkenstock to be reporting again in February, so soon after its last report. That sometimes happens with a new IPO company, with a delayed initial earnings report followed by more timely reports.
