Birkenstock (BIRK) Q1 2025 earnings summary

Executive summary

• Revenue grew 19% year-over-year to €362 million in Q1 FY25, surpassing annual guidance, with double-digit growth across all segments and channels driven by strong holiday demand.

• Adjusted EBITDA increased 25% to €102 million, with margin improving to 28.2%.

• Adjusted net profit nearly doubled to €33 million, and adjusted EPS rose 100% to €0.18.

• Net profit reached €20 million, reversing a €7 million loss in the prior year quarter.

• Membership base reached 8.8 million, up nearly 30% year-over-year.

Financial highlights

• Gross profit margin was 60.3%, down 70 bps year-over-year due to higher B2B mix.

• B2B revenue grew 30% to €182 million; D2C revenue up 10%-11%, with D2C share at 49%.

• Cash and equivalents: €299 million at quarter end; inventory-to-sales ratio improved to 39%.

• Adjusted selling & distribution expenses: €118 million (32.7% of revenue), and adjusted G&A expenses: €24 million (6.7% of revenue), both down as a percentage of revenue.

• Operating cash flow improved by €34 million year-over-year, totaling €12 million used.

Outlook and guidance

• Full-year revenue growth guidance of 15%-17% in constant currency reiterated.

• Adjusted EBITDA margin forecasted at 30.8%-31.3%, up to 50 bps higher than 2024.

• Gross margin targeted to move closer to long-term goal of 60%.

• CapEx expected at €80 million; net leverage to decrease to ~1.5x by year-end.

• D2C growth expected to outpace B2B in the second half of the year.