Birkenstock (BIRK) Q1 2025 earnings summary

Executive summary

• Revenue grew 19% year-over-year to €362 million, surpassing annual guidance, with double-digit growth across all regions and channels, driven by strong holiday demand and robust B2B and D2C performance.

• Net profit reached €20 million, reversing a prior-year net loss of €7 million; adjusted net profit nearly doubled to €33 million, and adjusted EPS rose to €0.18.

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

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

• Membership base grew to 8.8 million, up nearly 30% year-over-year, supporting D2C growth.

Financial highlights

• Q1 revenue reached €362 million, up 19% year-over-year in both reported and constant currency.

• B2B revenue grew 30% to €182 million; D2C up 10%-11% to €179 million; D2C share of business was 49%, down 400 bps from last year.

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

• Adjusted net profit was €33 million, up 99%; EPS was €0.18, up 100% year-over-year.

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

Outlook and guidance

• Full-year revenue growth guidance of 15%-17% in constant currency reiterated; gross margin targeted at 60% and adjusted EBITDA margin at 30.8%-31.3%.

• 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.

• Management expects to finance operations and working capital needs for the next 12 months from operating cash flows.

• Estimated effective tax rate for FY2025 is 34%, down from 35% in FY2024.