Why Birkenstock Is Still a Buy After Earnings
Birkenstock shares are soaring Wednesday after the sandal maker beat expectations for its fiscal fourth quarter. Here's what Wall Street has to say.


Birkenstock Holding (BIRK) shares are trading higher Wednesday after the footwear maker beat top- and bottom-line expectations for its fiscal 2024 fourth quarter.
In the three months ending September 30, Birkenstock's revenue increased 21.7% year over year to 455.8 million euros, due in part to 26% growth in its business-to-business (B2B) segment to 240.2 million euros and a 17.7% jump in its direct-to-consumer (DTC) segment to 214.9 million euros. Its net profit more than doubled from the year-ago period to 29 euro cents per share.
"I'm proud to be reporting very strong 2024 results, with both revenue and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] coming in ahead of our expectations," said Birkenstock CEO Oliver Reichert in a statement. "As we continue to gain the attention of consumers and wholesale partners, we are seeing strong, balanced growth in both our DTC and B2B channels."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. Wall Street was anticipating revenue of 455.8 million euros and earnings of 26 euro cents per share, according to CNBC.
"As we look into 2025 and beyond, we are confident in our ability to deliver on our medium to long-term objectives for mid-to-high teens revenue growth, gross profit margin of around 60% and adjusted EBITDA margin of over 30%," Reichert said.
Is Birkenstock a buy, sell or hold?
Birkenstock shares are up more than 23% for the year to date, slightly lagging the broader S&P 500's nearly 27% gain. But Wall Street remains bullish on the consumer discretionary stock.
According to S&P Global Market Intelligence, the average analyst target price for BIRK stock is $65.35, representing implied upside of almost 17% to the December 17 close. Additionally, the consensus recommendation is a Buy. Analysts may very well raise their price targets in the days and weeks ahead following the earnings beat.
Financial services firm UBS Global Research is one of the more bullish outfits on the retail stock with a Buy rating and $85 price target.
"We think BIRK's sales and earnings per share outlook warrants a higher valuation," wrote UBS analyst Jay Sole in a December 10 note. "We believe Birkenstock has the potential to expand its dominance as a premium casual footwear brand with a presence globally."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Trump's Immigration Policies and the Price of Home Healthcare: First 100 Days
President Trump's immigration policies may wallop your pocketbook if you rely on a home healthcare aide.
-
Stock Market Today: Stocks Extend a Quiet Winning Streak
The S&P 500 Index could actually close April with a monthly gain, which would be an extraordinary sign of market resilience.
-
Stock Market Today: Stocks Extend a Quiet Winning Streak
The S&P 500 Index could actually close April with a monthly gain, which would be an extraordinary sign of market resilience.
-
How Trump's First 100 Days Have Impacted Your Portfolio
President Trump's first 100 days in office have been busy, with a flurry of executive orders sparking volatility in the stock and bond markets.
-
Is It Still Worth It to Gift Savings Bonds?
Kiplinger editor explores if it's still a good idea to get savings bonds as gifts for children, looking at their returns and usability.
-
Don't Veer Off Course at the First Sign of a Squall in the Markets
When markets go nuts and investor sentiment drops, you can keep your sanity by trusting in and sticking with your long-term plan.
-
How Business Owners Can Prepare for a Terminal Diagnosis
The most important thing is readiness, whether the owner faces a life-changing diagnosis or an employee does.
-
Advisers, Take Note: How 2025 Social Security Changes May Impact Your Clients
What financial advisers might need to know to help their clients navigate Social Security in 2025.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.