Q1 2025 Birkenstock Holding PLC Earnings Call Transcript
Key Points
- Birkenstock Holding PLC (BIRK) reported a strong start to fiscal 2025 with record first-quarter results, driven by a 19% revenue growth, surpassing their 15% to 17% target.
- The company's B2B business experienced a 30% growth, supported by strong sell-through and reorders from key wholesale partners during the holiday season.
- The APAC region showed impressive growth at 47%, 2.5 times the pace of the overall business, with significant expansion in retail presence.
- Birkenstock's DTC business grew by 10%, with a strong membership base reaching 8.8 million, up nearly 30% year-over-year.
- The company successfully expanded its product offerings, with closed-toe shoes growing at twice the rate of the overall group, contributing significantly to revenue.
- Despite strong first-quarter results, Birkenstock Holding PLC (BIRK) did not raise its full-year guidance due to macroeconomic uncertainties such as interest rates, currency movements, and potential tariffs.
- Gross margin for the quarter was slightly down by 70 basis points year-over-year, primarily due to a higher B2B mix.
- The company faces challenges in scaling systems, infrastructure, and team in line with rapid growth.
- Cash and cash equivalents decreased from EUR356 million at the end of fiscal 2024 to EUR299 million, due to normal seasonality of working capital usage.
- There is a potential impact on the global economy and consumer sentiment due to inflation and macroeconomic uncertainties, which could affect future performance.
Good morning, and thank you for standing by. Welcome to Birkenstocks first quarter 2025 earnings conference call. (Operator Instructions) , Following the presentation, we will conduct a question-and-answer session. The company allocated 60 minutes in total to this conference call. I would like to remind everyone that this conference call is being recorded. I will now turn over the call to Megan Kulik, Director of Investor Relations.
Hello, and thank you, everyone, for joining us today. On the call are Oliver Reichert, Director of Birkenstock Holdings Plc and Chief Executive Officer of the Birkenstock Group. Erik Massmann, the outgoing Chief Financial Officer of the Birkenstock Group; and Ivica Krolo, Chief Financial Officer of the Birkenstock Group as of February 1.
Klaus Baumann, Chief Sales Officer; David Kahan, President Americas; Nico Bouyakhf, President, EMEA; Alexander Hoff, Vice President, Global Finance, will also join us for the Q&A.
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