Birkenstock Hits Record High on Booming Demand
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Key TakeawaysBirkenstock set a record for second-quarter sales as demand for its footwear jumped in all categories and regions.The company's earnings and revenue exceeded forecasts, and it raised its full-year outlook.The news sent Birkenstock shares to an all-time high.
Shares of Birkenstock Holding Plc (BIRK) jumped to an all-time high Thursday when the maker of fashion footwear posted record second-quarter revenue and boosted its guidance on strong demand across all its segments.The company known for its health-focused sandals reported quarterly revenue jumped 22% to EUR481.2 million ($521.7 million), with adjusted earnings per share (EPS) of EUR0.41 ($0.44). Both were solidly above forecasts. Sales were up 21% in both the Americas and Europe, and 42% in the Asia, Pacific, Middle East, and Africa (APMA) region.The company explained that the revenue increase was the result of “strong consumer demand supported by new production capacity and category expansion.” It noted the gains were helped by higher sales of its closed-toe silhouettes, which accounted for more than a quarter of overall revenue.Chief Executive Officer (CEO) Oliver Reichert noted that demand for Birkenstock shoes has continued to outpace supply in all segments, channels, and categories. He added that the company saw strong growth in its established markets and products, as well as largely untapped “white space areas."Reichert said because of the second-quarter performance, Birkenstock is raising its outlook for full-year revenue growth to 20% in constant currency, up from the previous forecast of 17% to 18% higher.Shares of Birkenstock, which debuted last October on the New York Stock Exchange (NYSE), surged 11% to $55.56 as of 1:45 p.m. ET Thursday. They have gained about 14% year-to-date. Read the original article on Investopedia.
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