Birkenstock shares are now trading around their $46 debut price, after having sunk to as low as $37 in the weeks following its listing. The margin contraction announced this week is modest, but the group still needs to win back investors’ trust. The fundamentals look robust. The group is now forecasting a 30% EBITDA margin – compare this to LVMH’s (LVMH.PA) 33%, or sports brand Lululemon Athletica’s (LULU.O) 27%. Revenue climbed 20% in 2023, with strong growth across Asia Pacific. All Birkenstock has to do is overcome the bad impression left by the excessive hubris it thought would help it defy last year’s choppy capital markets. To avoid further blisters, it needs to keep a fast pace. (By Pamela Barbaglia)
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