William Blair initiated research coverage of Birkenstock Holding plc (BIRK $40.20), a global brand anchored by a broad array of footwear featuring the company’s proprietary contoured footbed.
Analyst Sharon Zackfia estimated that the company would generate revenue of €1.47 billion in 2023, up from €1.24 billion in 2022, and rising to a projected €1.71 billion in 2024.
“Reflecting a complete overhaul of its distribution model to enhance brand positioning, investments to increase production capacity, diversification into closed-toe and premium-priced styles, and a multiyear consumer trend toward casual and comfortable fashion, Birkenstock’s revenue grew at a robust 20% compound annual rate from fiscal 2014 to 2022, with strong results continuing in fiscal 2023, with revenue up 21% year-to-date,” said Zackfia. “The company’s owned production and engineered distribution model create almost real-time flexibility, enabling the company to send product to where it makes the most money while driving high-quality growth.”
Zackfia added, “In addition to continued innovation around its core silhouettes and style franchises, Birkenstock has a robust pipeline of products to address new categories and use occasions, including products designed for healthcare, hospitality, and utility professionals; expanded collections of active EVA and outdoor; additional kids’ profiles; and exchangeable footbeds.”
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Current Ratings Distribution (as of 11/6/23)
Outperform (Buy): 71%
Market Perform (Hold): 29%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 7%
Market Perform (Hold): 3%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
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