Birkenstock up as revenues boosted by strong global demand

Birkenstock (NYSE:BIRK) shares gained around 12% in Thursday’s dealing, boosted by positive financial results for its second quarter.

Revenue for the three months, ending March 31, amounted to €481 million which was 23% higher than the same period a year ago.

The fashionable German manufacturer of sandals and clogs generated €162.3 million of earnings (adjusted EBITDA), which was comfortably ahead of consensus Wall Street forecasts predicting €145.8 million.

On a per share basis earnings came in at 38 euro cents, also better than the 35 cents forecast by analysts.

Chief executive Oliver Reichert told investors that the strong financials reflected the strength of its business model and the growing demand for the German firm’s footwear.

"We see strong demand growth in the largely untapped white space areas we have identified across geographies, channels, categories and usage occasions,” Reichert said. “At the same time, we continue to see very strong growth in our established markets and products."

Now, thanks to the strong performance, Birkenstock has upgraded its guidance for the full-year.

It now expects to hit €1.77 to €1.78 billion of revenue for the year, nudged up from €1.75 billion. Earnings for the year is meanwhile forecast between €535 million and €545 million, from €520 million and €530 million.

Birkenstock highlighted that it is continuing investments to enhance manufacturing capacity as well as its retail footprint, with the group reacting to the upward demand trend – albeit, at €35 million for the year-to-date the capital spend remains somewhat modest.

In New York, Birkenstock shares were up $6.03 or 12% changing hands at $55.97.