Birkenstock Aims for Stronger Profitability Ahead After Margins Shrink -- Update
Marketwatch - Dec 18th, 2024
Birkenstock reported a decrease in profitability for the fiscal year ending September 30, with a gross margin of 58.8%, down from 62.1% the previous year. The decline was attributed to increased production capacity and higher wholesale revenue, which typically has lower margins. Despite this, the company expects improved margins in the next period due to expanded factory space. Birkenstock is broadening its product range to include orthopedic and professional shoes and has increased its retail stores to 67. The company's EBITDA margin dropped to 30.8% from 32.4% last year but is expected to improve in fiscal 2025. Birkenstock aims for an EBITDA margin of 30.8%-31.3% and organic revenue growth of 15%-17%. The company sold €1.8 billion worth of footwear, exceeding its 20% growth target, with a net profit increase of 16% to €240 million. Despite past concerns over margins affecting investor confidence, Birkenstock shares were slightly down in premarket trade.
RATING
The article provides a concise and factual report on Birkenstock's financial performance for the fiscal year. It includes specific data on margins and projections, but lacks multiple perspectives and external sources.
RATING DETAILS
The article presents specific financial figures and projections from Birkenstock, which appear accurate and consistent. However, without external verification, we cannot fully confirm the data's accuracy.
The article primarily reflects the company's perspective without presenting additional viewpoints or external analysis, leading to limited balance in reporting.
The article is clearly written with a logical structure and neutral tone. However, additional context about market conditions or competitors could improve reader comprehension.
The article cites company statements and uses FactSet for analyst forecasts, both reliable sources. However, it lacks a broader range of independent sources to enhance credibility.
The article provides clear data and acknowledges the reporter's contact information, but does not disclose any affiliations or potential conflicts of interest.