Birkenstock (BIRK) Q1 2025 earnings summary

Executive summary

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

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

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

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

• Closed-toe products now represent over half of revenue, with share up 600 bps year-over-year and strong APAC growth at 47%.

Financial highlights

• B2B revenue grew 30% to €182 million; D2C revenue up 10% to €179 million, with D2C share at 49%, down 400 bps year-over-year.

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

• Adjusted EBITDA margin improved by 130 bps to 28.2%.

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

• Operating cash flow improved to -€12 million from -€45 million year-over-year.

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 targeted at ~1.5x by year-end.

• Q2 expected to be B2B-heavy with seasonal gross margin decline, but within full-year margin guidance.