Yesterday, the $LVMH-backed iconic sandal-maker Birkenstock filed for its NYSE IPO!
With a 250-year history and a product that has been cheaply imitated for decades, $BIRK's 20% revenue CAGR over the last eight years is very impressive. Looking at profitability, Birkenstock actually has 60% gross margins, and its EBIT margins reached as high as 29% in FY22. In 2021, Birkenstock was acquired by the private equity firm L Catterton for $4.3B. Together with Bernard Arnault's family holding company Groupe Arnault, LVMH owns 40% of the ~$30B firm. The rumored valuation of ~$8B would imply an EBIT multiple somewhere around 20x, using the company's FY22 numbers. Source: Quartr
Stock Market: "We don't need central banks anymore, we have AI"
Source: Jeffrey Kleintop
Thankfully, the US is a country where the President has very little impact on the stock market
Stocks tend to go up during most presidencies, regardless of who is in power. Key takeaway: Don't mix politics with your portfolio. Source: Charlie Bilello
German builders warn of crisis as they scrap record number of projects
According to a FT article, cancelled building projects and financial distress among landlords and builders in Germany have hit their highest levels since reunification three decades ago, intensifying the construction crisis in the EU’s biggest economy. Hit by rising interest rates, soaring costs and weaker demand, 20.7 per cent of construction companies said they had been forced to scrap a project in August, up from 18.9 per cent in the previous month, according to a survey of 500 businesses by researchers at the Ifo Institute in Munich. Source: https://lnkd.in/etkDryVY
What powered the world in 2022
Source: Elements
US CORE CPI LITTLE HOTTER THAN EXPECTED => A FED PAUSE IS LIKELY BUT NO RATE CUT ANYTIME SOON
Consensus expected a reacceleration of Headline inflation (+0.6% MoM after +0.2% in July) and a stabilisation of “core” inflation (+0.2% MoM after +0.16% in July). Key actual numbers are the following: ON A SEQUENTIAL BASIS (MoM) Headline inflation numbers are in-line with expectations (+0.6%). That is the biggest MoM since June 2022 and the second straight monthly increase in CPI...The energy index rose 5.6% in August after increasing 0.1% in July. There was a big turn-around in airline fares. They rose 4.9% after dropping 8.1% in each of the previous two months. But the gasoline index dominated with an increase of 10.6 percent in August, following a 0.2% increase in the previous month.
Visualizing Google’s Search Engine Market Share 🔍
https://lnkd.in/dAbVgCFJ
The continued strong demand for consumer services is why the Fed is unable to contain core inflation
According to Apollo, a record 22% of US consumers are planning to vacation in a foreign country. US households want to travel on airplanes, stay at hotels and eat out. The Kobeissi Letter: "That is why inflation in the non-housing service sector continues to be so high. No wonder credit card debt is skyrocketing". Source: The Kobeissi Letter, Apollo
