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Prada Looking at Dual Listing but Not M&A

A model walks the runway of Prada fashion show during the Milan Fashion Week Womenswear Spring/Summer 2024 on September 21, 2023 in Milan. (Photo by Marco BERTORELLO / AFP)
A model walks the runway of Prada fashion show during the Milan Fashion Week Womenswear Spring/Summer 2024 on September 21, 2023 in Milan. (Photo by Marco BERTORELLO / AFP)
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Prada Looking at Dual Listing but Not M&A

A model walks the runway of Prada fashion show during the Milan Fashion Week Womenswear Spring/Summer 2024 on September 21, 2023 in Milan. (Photo by Marco BERTORELLO / AFP)
A model walks the runway of Prada fashion show during the Milan Fashion Week Womenswear Spring/Summer 2024 on September 21, 2023 in Milan. (Photo by Marco BERTORELLO / AFP)

Hong Kong-listed Prada is looking at a dual listing on the Milan bourse, though it is not the Italian fashion group's priority, the Chief Executive said on Monday.
A dual listing in Europe would help Prada widen its investor base, as some investment funds can only put money in European or US stocks, Reuters said.
Andrea Guerra added that Prada had no need for M&A deals in the next 3-5 years, but would carry on with organic growth, "to have the role that belongs to us", speaking at a fashion conference

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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)
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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.