Birkenstock: Stock Is Still Not Attractive After Price Drop
Summary
- Birkenstock's Q3 2024 showed an impressive 19% YoY revenue growth, but the stock price dropped 20% due to a revenue and earnings miss.
- Despite strong performance, high valuations and fashion risk make Birkenstock's stock inherently risky, leading me to maintain a Hold rating.
- The company's shift from DTC to B2B impacted gross margins, but management's guidance of 20% topline growth and 30% EBITDA margins remains intact.
- Birkenstock's current valuation requires excessive growth to justify its price, making future returns uncertain and supporting my Hold recommendation.
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