Birkenstock is scheduled to report quarterly earnings for the first time since its October IPO before the market opens on January 18.
The iconic German shoe company is projected to post fiscal 2023 fourth-quarter earnings of $0.18 per share on revenue of $391.16 million.
Back in November, analysts at Bank of America initiated coverage of Birkenstock with a Neutral rating and $44 price target, calling the company “a differentiated brand with strong growth at a fair price.”
Shares of Birkenstock traded nearly 2% higher Wednesday afternoon at $47.52.
“While we view it as a strong brand with unique attributes, we think outsized growth on top of the robust recent trends will be difficult,” the analysts wrote at the time. “This leaves multiple expansion as the key driver of stock performance.”
Bank of America forecast sales growth of 16% in fiscal 2024 and 2025 based on double-digit expansion in all regions.
“Birkenstock's key product differentiation is its footbed, which the company promotes as the ‘next best option to walking barefoot.’ Roughly 75% of its sales come from core silhouettes (several of which have been in the market for over 40 years) and embedding the footbed technology into new products is a key strategic expansion opportunity,” the analysts added.