Birkenstock (BIRK) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 FY24 revenue of EUR 565 million, up 19% year-over-year, driven by strong demand across all segments, channels, and categories.

• Adjusted EBITDA rose 15% to EUR 186 million, with a margin of 33.0%.

• Adjusted net profit increased 14% to EUR 92 million; adjusted EPS up 11% to EUR 0.49.

• Net leverage improved to 2.1x LTM EBITDA, reflecting strong cash generation and debt reduction.

• Opened 7 new stores in Q3, bringing the total to 64 globally, with expansion in APMA and new mono-brand partner stores.

Financial highlights

• Revenue grew 19% year-over-year to EUR 565 million; Americas up 15%, Europe up 19%, APMA up 41%.

• B2B revenue up 23-24%, D2C revenue up 14%, with DTC penetration at 40%.

• Gross profit margin was 59.5%, down 220 bps year-over-year, mainly due to capacity expansion and channel mix shift.

• Adjusted EBITDA margin at 33.0%, down 140 bps year-over-year.

• Operating cash flow was EUR 281 million, with total cash flow of EUR 229 million.

Outlook and guidance

• Fiscal 2024 guidance confirmed: revenue growth of 20% in constant currency and adjusted EBITDA margin of 30-30.5%.

• Medium- and long-term targets: mid-to-high teens revenue growth, 60% gross profit margin, and adjusted EBITDA margin over 30%.

• Management expressed high confidence in meeting or exceeding the high end of guidance, supported by strong order books and backlog.

• Management reiterates long-term revenue CAGR of 20% since 2014, with continued growth expected.

• Forward-looking statements highlight risks from competition, supply chain, consumer trends, and macroeconomic factors.