Birkenstock's Q4 and fiscal 2024 results beat expectations

Birkenstock Holding reported fiscal 2024 revenue growth of 21 percent on a reported and 22 percent on a constant currency basis to 1.8 billion euros, ahead of the company's guidance of 20 percent, driven by continued strong and growing consumer demand for its products across all segments, channels and categories.

The company said fourth quarter revenue of 456 million euros, increased by 22 percent on a reported and constant currency basis.

Commenting on the fourth quarter and full year update, Oliver Reichert, CEO of Birkenstock Group said: “We are delivering on the commitments we made during our IPO by expanding profitably into the white-space opportunities we identified: closed-toe silhouettes, orthopedics, professional, outdoor, the APMA region and our own retail.”

Birkenstock’s profit jumps in FY24

Birkenstock saw a double-digit revenue growth across all segments including 19 percent in the Americas, 21 percent in Europe and 42 percent in APMA on a constant currency basis. DTC revenue growth was 21 percent and B2B revenue growth was 23 percent on a constant currency basis.

Gross profit margin of 58.8 percent declined 330 basis points, while net profit of 192 million euros, increased by 155 percent year-over-year; and EPS of 1.02 euros, rose 149 percent year-over-year. Adjusted net profit of 240 million euros, was up 16 percent and adjusted EPS of 1.28 euros, increased by 13 percent.

The company’s adjusted EBITDA of 555 million euros, was up 15 percent, while adjusted EBITDA margin of 30.8 percent, was above projected range of 30 to 30.5 percent.

Highlights of Birkenstock’s Q4 results

In the fourth quarter, the company recorded double-digit revenue growth across all segments including 21 percent in the Americas, 19 percent in Europe and 38 percent in APMA on a constant currency basis. DTC revenue growth was 18 percent and B2B revenue growth of 26 percent on a constant currency basis.

Gross profit margin for the quarter of 59 percent, was down 640 basis points but net profit of 52 million euros, increased from a net loss of 28 million euros; while EPS of 0.28 euros, increased from negative 0.15 euros.

Adjusted net profit of 55 million euros, increased by 118 percent and adjusted EPS of 0.29 euros, was up 107 percent. The company added that adjusted EBITDA of 125 million euros, was up 31 percent and adjusted EBITDA margin of 27.4 percent was up 190 basis points.

Birkenstock forecasts 15 to 17 percent revenue growth for fiscal 2025

The company expects revenue growth of 15 to 17 percent in constant currency, with strong contribution from all segments, channels and categories in fiscal 2025.

Adjusted EBITDA margin of 30.8 to 31.3 percent expected to increase up to 50 basis points compared with fiscal 2024.

The company further said that gross profit margin is expected to improve with increased utilization of new production facilities, moving closer to the long-term target of 60 percent.

“As we look into 2025 and beyond, we are confident in our ability to deliver on our medium to long-term objectives for mid-to-high teens revenue growth, gross profit margin of around 60 percent and adjusted EBITDA margin of over 30 percent,” added Reichert.