Birkenstock Stock Rises as Shoemaker Sees Margins Improving | Global News Avenue

Birkenstock Holdings Inc. (Burke) on Wednesday reported fourth-quarter results that beat analysts’ expectations and outlined its expectations for its second full fiscal year as a public company, sending shares higher.

The shoe maker reported a profit of 52.5 million euros ($55.1 million) on revenue of 455.8 million euros ($478.2 million). Analysts had expected net profit of 48 million euros on revenue of 437.2 million euros, according to estimates compiled by Visible Alpha.

Full-year revenue was 1.8 billion euros, an increase of 21% compared with fiscal 2023. Chief Executive Officer (CEO) Oliver Reichert says Birkenstock is “cashing on” expansion opportunities it identified before it was founded. Initial Public Offering (IPO) October 2023.

Birkenstock says new production facility will come to fruition in fiscal 2025

Birkenstock shoes say it expects It expects revenue to grow 15% to 17% on a constant currency basis in fiscal 2025 and said gross margins are expected to improve after a pullback this year as investments in new capacity begin to take effect.

Birkenstock shares were up 15% this year as of Tuesday’s close and were up another 5% in premarket trading.