Q2 2025 Birkenstock Holding PLC Earnings Call Transcript
Key Points
- Birkenstock Holding PLC (BIRK) reported a record EUR574 million in revenues for the second quarter, marking a 19% increase year over year.
- The company achieved a gross margin of 57.7%, up 140 basis points from the previous year, driven by better absorption of costs and favorable currency translation.
- Birkenstock's D2C channel showed strong growth, with a 25% increase in its membership base, reaching over 10 million loyal members.
- The APEC region was the fastest-growing segment, with a 30% increase in revenue, driven by strong growth in the D2C channel and strategic partnerships.
- The company is on track to expand its retail presence, aiming for 100 owned stores by the end of the fiscal year, with 77 stores currently in operation.
- The company faces potential headwinds from tariffs and foreign exchange fluctuations, which could impact growth and margins in the second half of the year.
- Despite strong performance, the third quarter is expected to be the slowest growth quarter due to the seasonal mix of products.
- General administration expenses increased by 150 basis points year over year, primarily due to higher IT expenses related to ERP conversion.
- The company is experiencing increased competition in the market, which may require strategic pricing adjustments to maintain its competitive edge.
- Birkenstock's reliance on European manufacturing and materials could pose risks if there are disruptions in the European supply chain.
Good morning, and thank you for standing by. Welcome to Birkenstock's quarter 2025 earnings conference call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded.
I will now turn over the call to Megan Kulick, Director of Investor Relations.
Hello and thank you everyone for joining us today. On the call are Oliver Reichert, Director of Birkenstock Holding PLC and Chief Executive Officer of the Birkenstock Group; and Ivica Krolo, Chief Financial Officer of the Birkenstock Group; David Kahan, President of Americas; Nico Bouyakhf, President of EMEA; and Alexander Hoff, Vice President of Global Finance, will join us for the Q&A.
Today, we are reporting the financial results for our fiscal second quarter of 2025 ending March 31, 2025. You may find the press release and supplemental presentation connected to today's discussion on our investor relations website at Birkenstock-holding.com. We would like to remind you that some of the information during
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