Iconic New York Discount Luxury Store Reopens After Pandemic Bust 

A customers shops during the reopening of the Century 21 flagship department store in New York City on May 16, 2023. (AFP)
A customers shops during the reopening of the Century 21 flagship department store in New York City on May 16, 2023. (AFP)
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Iconic New York Discount Luxury Store Reopens After Pandemic Bust 

A customers shops during the reopening of the Century 21 flagship department store in New York City on May 16, 2023. (AFP)
A customers shops during the reopening of the Century 21 flagship department store in New York City on May 16, 2023. (AFP)

Forced to shutter during the Covid-19 pandemic, discount luxury goods store Century21 reopened its flagship location in Manhattan on Tuesday, drawing elated crowds of bargain hunters back to the New York institution.

Shoppers traversed the city and even state borders to line up from as early as 6:00 am to be some of the first to enter the legendary Big Apple department store near the World Trade Center complex in lower Manhattan.

Under red balloons and to the applause of Century21 owners the Gindi family, the first shoppers shouted with joy as they entered the store after three years of closure due to the pandemic, which brought New York to its knees in 2020 and 2021.

"It means so much to the people of New York," said 63-year-old Gale Kaplan, who traveled from Brooklyn across the East River for the reopening.

"During 9/11 it closed and when it reopened, everybody was so joyful, so to see it able to come back after Covid, it feels like a real new blossoming of New York and I'm just thrilled to be back here shopping."

Brooklyn was the home of the first iteration of Century21, founded in 1961 and decked with clothes and accessories from coveted brands such as Valentino, Louis Vuitton, Calvin Klein, Ralph Lauren, Guess, Levi's, Kate Spade, Helmut Lang, but at end of stock reduced prices that defied all competition.

'The best store'

Melody White, 62, traveled from the borough of Queens to get in line by 6:00 am.

"I was really, really upset when they closed because it's the best store, you could get the best buys, nice clothes, everything."

Kaplan was "more excited standing on line to the Century21 opening than I was on line for the Sistine Chapel," she said.

"That's how happy I am."

Also all smiles, Century21 vice president Eddie Gindi said Tuesday was "an incredible day for us."

"Right now we're making history," he said, more than 20 years after almost disappearing after the September 11, 2001, attacks that destroyed the twin towers at the nearby World Trade Center, and three years after the company filed for bankruptcy as New York was battered by the pandemic.

"We don't take this for granted," he said.

New York Mayor Eric Adams, who has put the economic and touristic recovery of the megalopolis at the heart of his policies -- despite inflation -- was also celebrating, hugging the Gindi family in the store, its aisles again stacked with merchandise.

"When they had to close, it just broke their hearts. And all they thought about is how do we come back?... How do we serve the people? It was a main anchor for our tourists, they would come here and line up and shop, to see the good products that we had in all places," he said.

For Gindi, the grand reopening of Century21 "is bringing back the spirit of New York City like no other company can do because we are part of the thread of New York City," one of the world's leading economic and commercial centers.



Birkenstock Results Beat on Resilient Demand, Forecasts Margin Recovery

A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
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Birkenstock Results Beat on Resilient Demand, Forecasts Margin Recovery

A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)

Birkenstock beat market expectations for fourth-quarter results on robust demand for its pricey footwear and forecast a recovery in margins in fiscal 2025, sending the company's shares up 7% on Wednesday.

With fresh styles becoming a priority for consumers, Birkenstock's sandals and closed-toe clogs have drawn new customers both at its own stores and at retailers.

The company bypassed steep discounting trends evident during the holiday shopping season, which Birkenstock executives said was off to a strong start globally.

"The expansion of ranges into more closed-toe silhouette has helped boost revenue, given that they offer multi-season wear," Susannah Streeter, head of money and markets at Hargreaves Lansdown, said.

Germany-based Birkenstock's average selling prices across its product range were up 8% in fiscal 2024, in part due to higher sales of clogs, the company said, adding that closed-toe styles now made up about a third of its business.

The company has invested in expanding its global store presence and increasing manufacturing capacity this year to meet demand.

While it led to a 330-basis point drop in gross margins in fiscal 2024, Birkenstock forecast a recovery in margins in fiscal 2025 as it ramps up production from new facilities.

The company reported fourth-quarter revenue of 455.8 million euros ($478.27 million), compared with the average analyst estimate of 439.2 million euros, according to data compiled by LSEG.

However, Birkenstock's forecast for fiscal 2025 revenue to increase between 15% and 17% was below estimates of 17.5% growth.

"It would appear with this incredibly healthy growth, the company is choosing to adopt a conservative approach that they expect to be able to meet and beat," BMO Capital Markets analyst Simeon Siegel said.

On an adjusted basis, Birkenstock earned 0.29 euro per share, beating estimates of 0.26 euro.