2. Birkenstock Holding plc (NYSE:BIRK)
Revenue growth past 5 years: 19.41%
Number of hedge fund holders: 36
German footwear manufacturer, Birkenstock Holding plc (NYSE:BIRK) is celebrated for its iconic sandals and shoes featuring contoured cork footbeds. The brand of footwear has a unique personality and a strong presence in the global footwear industry. Birkenstock’s product portfolio includes a diverse range of sandals, shoes, closed-toe silhouettes, skincare products, and accessories, catering to a wide audience across various markets. The company’s focus on both quality and comfort has solidified its position as a leading brand in the footwear sector.
Birkenstock Holding plc (NYSE:BIRK) presented robust financial results in the first quarter of 2025. Revenue increased by 19% to €361.7 million, driven by strong demand during the holiday season. Particularly in the Asia-Pacific region, revenues surged by 47% to €47.1 million. Net income for the quarter reached €20.12 million, a significant turnaround from the net loss of €7.15 million in the same period the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 25% to €102.1 million, reflecting the company’s operational efficiency and strategic market position.
While gross margins declined to 58.8% from 62.1% in 2024 due to increased production capacity and a higher proportion of wholesale revenue, Birkenstock Holding plc (NYSE:BIRK) remained optimistic about its future profitability. The company anticipates improved gross profit margins, aiming for a long-term target of 60% through enhanced production capabilities and strategic price adjustments. The company projects revenue growth between 15% and 17% for the fiscal year 2025, capitalizing on robust performance in both wholesale and retail channels.
Strategically, Birkenstock Holding plc (NYSE:BIRK) is targeting the expansion of its product categories to encompass and increase its retail footprint globally. It has plans to open additional stores and enhance its direct-to-consumer channels to meet the growing demand for its unique products. Boasting strong brand loyalty and effective market strategies, Birkenstock’s growth trajectory remains positive for sustained revenue growth and profitability in the coming years.
