Does Birkenstock Holding plc (BIRK) have Durable Internal Profit Catalysts?

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global markets saw an incredible but volatile second quarter, shifting from deep declines to strong gains. In the quarter, its Investor Class fund ARTSX returned 7.30%, Advisor Class fund APDSX posted a return of 7.33%, and Institutional Class fund APHSX returned 7.36%, compared to a return of 11.97% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its second-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as Birkenstock Holding plc (NYSE:BIRK). Birkenstock Holding plc (NYSE:BIRK) engages in the manufacturing and distribution of footwear products. The one-month return of Birkenstock Holding plc (NYSE:BIRK) was 4.40%, and its shares lost 14.42% of their value over the last 52 weeks. On August 22, 2025, Birkenstock Holding plc (NYSE:BIRK) stock closed at $53.40 per share, with a market capitalization of $9.821 billion.

Artisan Small Cap Fund stated the following regarding Birkenstock Holding plc (NYSE:BIRK) in its second quarter 2025 investor letter:

“Notable adds in the quarter included Birkenstock Holding plc (NYSE:BIRK), ServiceTitan and Stevanato. Birkenstock is a heritage casual footwear brand known for its portfolio of primarily open-toe and open-heel products. It operates a hybrid distribution model across both wholesale and direct-to consumer channels and executes a supply-constrained strategy that drives high levels of full-price sell-through. This disciplined approach has historically supported measured and sustainable growth. We believe the brand’s enduring franchise value and supply-led model position it well for steady unit expansion and rising average selling prices—together driving attractive long-term revenue growth. We initiated a GardenSM position in Birkenstock toward the end of Q1 2025, as the stock weakened in anticipation of potential tariff impacts and an increasingly uncertain consumer spending environment. We continued to build our position during the “Liberation Day” selloff, as we believe there is a durable set of company-specific profit cycle drivers, including product cycle innovation, increasing geographic distribution and a time- and cyclical-tested brand.”

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A customer browsing a retail store, finding the perfect footwear for their casual outfits.

Birkenstock Holding plc (NYSE:BIRK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Birkenstock Holding plc (NYSE:BIRK) at the end of the second quarter, which was 43 in the previous quarter. While we acknowledge the risk and potential of Birkenstock Holding plc (NYSE:BIRK) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Birkenstock Holding plc (NYSE:BIRK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.