Now Reading: Birkenstock shares jump 20% after robust Q3, revenue forecast raised
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Birkenstock shares jump 20% after robust Q3, revenue forecast raised
Birkenstock shares jump 20% after robust Q3, revenue forecast raised
Birkenstock shares surged 20% on Thursday to $46.30 on the NYSE after the German footwear maker posted better-than-expected fiscal third-quarter results and raised its full-year revenue forecast. Revenue for the quarter ended…
The Story in Brief
Birkenstock shares surged 20% on Thursday to $46.30 on the NYSE after the German footwear maker posted better-than-expected fiscal third-quarter results and raised its full-year revenue forecast. Revenue for the quarter ended June rose 15% in constant currency to €720 million, at the high end of its own target, led by 18% growth in Asia-Pacific and strong direct-to-consumer sales.
The company now expects full-year constant-currency revenue growth of 15%, up from its earlier 13-15% range. However, net profit fell 15% to €110 million because of one-time expenses. Adjusted profit rose 15%. The adjusted EBITDA margin narrowed to 33.7% from 34.4%, hit by unfavourable currency moves and US tariffs, partly offset by better capacity use. The company also completed a €230 million share buyback.
The Indian Opinion
The narrative that luxury-adjacent brands are bulletproof against a US spending slowdown gets a fresh test here. Birkenstock's double-digit revenue growth is real, but its margin fell 70 basis points partly because of US tariffs. That is a concrete cost, not a passing headwind. The real test is whether repeated tariff hikes eventually squeeze even loyal customers. Watch next quarter's Americas revenue growth: if it stays high, the “wealthy consumer shield” thesis holds; if it slips, the tariff impact is deeper than brand loyalty alone can absorb.
Source: livemint.com
This story was synthesised by AI from the source linked above.
