Birkenstock (BIRK) Q3 2024 earnings summary

Executive summary

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

• Adjusted EBITDA rose 15% to €186 million, with a margin of 33.0%; adjusted net profit increased 14% to €92 million, and adjusted EPS rose 11% to €0.49.

• Net profit rose 18% to €75 million, with EPS up 15% to €0.40.

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

• Opened 7 new stores in Q3, bringing total to 64 globally, and expanded APMA presence with new stores and mono-brand partners.

Financial highlights

• Revenue grew 19% year-over-year to €565 million; Americas up 15-16%, Europe up 19-20%, APMA up 36-41%.

• DTC revenue increased 14%, B2B revenue up 23-24%; DTC penetration rate at 40%.

• Gross profit margin was 59.5%, down 220 bps year-over-year due to capacity expansion and higher B2B share.

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

• Operating cash flow was €281 million, up from €237 million a year ago; total cash flow was €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 guidance, supported by strong order books and backlog.

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