On February 20, German footwear brand Birkenstock Holding plc announced its financial results for the first quarter of fiscal year 2025 (October to December 2024). The company reported revenue of €362 million, marking a 19% year-over-year increase. This growth surpassed the company’s 15-17% annual guidance, driven by strong demand during the holiday season.
Strong Performance Across All Regions with Double-Digit Growth
The company’s revenue growth was supported by expansion in key markets. The Americas region saw a 16% increase, EMEA (Europe, Middle East, and Africa) grew by 17%, and APAC (Asia-Pacific) experienced an impressive 47% growth. In particular, the APAC region’s rapid expansion of mono-brand stores, both owned and through partners, contributed significantly to the overall development.
Looking at revenue by channel, B2B (business-to-business) sales surged 30% year-over-year, driven by strong demand from wholesale partners expanding their Birkenstock offerings. DTC (direct-to-consumer) sales increased by 11%, showing steady growth despite a slowdown compared to the exceptionally high growth of previous years.
By product category, clogs, other closed-toe shoes, and boots performed exceptionally well, with these items gaining 600 basis points of market share compared to the previous year.
Profit Growth and Financial Position
The net profit for Q1 FY2025 was €20 million, marking a significant improvement from a net loss of €7 million in the same period of the previous year. Earnings per share (EPS) rose to €0.11, compared to -€0.04 in the prior year. The adjusted net profit doubled to €33 million (99% YoY increase), with adjusted EPS reaching €0.18 (up 100%).
Adjusted EBITDA grew 25% year-over-year to €102 million, while the EBITDA margin improved by 130 basis points to 28.2% from 26.9% in the previous year, reflecting stronger profitability.
However, the gross profit margin declined slightly to 60.3% from 61.0%, primarily due to an increase in the proportion of B2B sales.
The company continued investing in production expansion, with capital expenditures reaching €19 million. As of the end of the first quarter, cash and cash equivalents stood at €299 million, with a net leverage ratio of 1.9x, maintaining a stable financial foundation.
Oliver Reichert, CEO of Birkenstock Group and a member of the board of directors, commented: “Our results for the first quarter of 2025 reflect the continued strength of our brand throughout the important holiday season. BIRKENSTOCK proved to be a high-demand gifting item and must-have for our wholesale partners. Our clogs, other closed-toe shoes and boots performed very well, with share of business up 600 bps year-over-year. We once again saw very strong growth across all of our segments, with APAC coming in exceptionally strong as we accelerated the pace of store openings and deliveries to some B2B partners in the quarter. With the strong start to the year, we are confident in our ability to deliver on our guidance for 2025.”
Outlook and New Segment Reporting Structure
Birkenstock has reaffirmed its guidance for the fiscal year 2025, setting the following targets:
- Revenue growth of 15-17% (constant currency)
- Adjusted EBITDA margin of 30.8-31.3%
- Continued improvement in the gross profit margin, approaching the long-term target of 60%
Additionally, starting from the first quarter of fiscal year 2025, Birkenstock has implemented a new segment reporting structure. The EMEA (Europe, Middle East, and Africa) segment now includes the Middle East and Africa regions, while the APAC (Asia-Pacific) segment has incorporated India. There are no changes to the Americas segment.
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