Even without enough sandals to go around, Birkenstock Holding PLC (NYSE:BIRK) walked its way to a solid quarter.
The Linz am Rhein, Germany-based footwear manufacturer reported solid results for its fiscal third quarter. Its constant currency revenue grew 16% and it reported an EBITDA beat despite strong currency headwinds.
The Birkenstock Holding Analyst: Analyst Dana Telsey or Telsey Advisory Group maintains an Outperform rating and price target of $70.
The Birkenstock Holding Thesis: The company witnessed strong demand for all its product types during the quarter, Telsey said in the note.
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Birkenstock was unable to top the consensus revenue estimate as it did not have enough product to meet demand during the quarter, she added.
While the company's B2B business grew 18% year-on-year, DTC grew 12%, the analyst stated. Management expects B2B growth to outpace DTC in the fiscal fourth quarter, although DTC is expected to accelerate sequentially, she commented.
"We continue to see BIRK bringing new iterations of classic styles to market, which helps drive additional purchases and higher ASPs (average selling prices)," Telsey further wrote.
BIRK Price Action: Shares of Birkenstock Holding had risen by 0.39% to $48.60 at the time of publication on Friday.
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