Magic Markets #159: Crocs and Birkenstock

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In this episode of Magic Markets, we dug in the back of our cupboards for the shoes we are too embarrassed to wear. Perhaps we just aren’t fashionable enough, as there are many celebrities wearing Birkenstocks. As for Crocs, there are few who would put those on a pedestal for beautiful design.

Moe covered Crocs in this show, starting with a recap of some of the points we covered when issuing our Magic Markets Premium report on Crocs some time ago. As much as we can joke about the shoes, they do a solid job of selling them – along with accessories as well. Revenue guidance for 2024 is muted though, particularly in the Hey Dudes brand.

Ghost took on the responsibility of Birkenstock, which executed its IPO just a few months ago. It was a disaster initially but has subsequently recovered. When you dig into the numbers, you find quite an astonishing story and many strategic similarities to some of Nike’s best recent decisions. The valuation is huge and the share price has been volatile, but the underlying business has an exceptional track record.

Of the two ugly shoe contenders, which one is a buy? And does Birkenstock make a decent case for itself to be covered in Magic Markets Premium at some stage? Listen to this podcast to find out.

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