Birkenstock (BIRK) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 21% (22% constant currency) to €1.8 billion, surpassing guidance, with growth across all segments, channels, and categories.

• Adjusted EBITDA margin reached 30.8%, exceeding guidance, with adjusted EBITDA of €555 million (+15% YoY).

• Adjusted net profit was €240 million (+16% YoY); adjusted EPS €1.28 (+13% YoY).

• Net leverage reduced to 1.8x, supported by strong operating cash flow and major loan repayments.

• Membership base grew over 30% to 8 million, with members spending 30% more than non-members.

Financial highlights

• Q4 2024 revenue: €456 million, up 22% constant currency; full-year revenue: €1.8 billion, up 21% year-over-year.

• Gross profit margin: 58.8% for FY24 (down 330 bps YoY) due to capacity expansion and channel mix.

• Adjusted EBITDA: €555 million (+15% YoY), margin 30.8% (down 160 bps, but above guidance).

• Operating cash flow: €429 million (+20% YoY); cash and equivalents: €356 million.

• Inventory-to-sales ratio improved to 35% (from 40%).

Outlook and guidance

• Fiscal 2025 revenue growth expected at 15–17% constant currency, with balanced D2C and B2B contributions.

• Adjusted EBITDA margin guidance: 30.8–31.3%, up to 50 bps higher than 2024.

• Gross margin projected to improve, targeting 60% long-term as new facilities are utilized.

• CapEx planned at €80 million, mainly for production and retail expansion.

• Target net leverage ratio: ~1.5x by year-end 2025.