Holiday Season Demand Drives Growth and New Store Openings
- 19% revenue growth to €362m (£299m) in Q1 FY25
- Adjusted EBITDA increased 25% to €102m (£84m)
- Net profit up to €20m (£16m)
- Growth attributed to strong holiday season demand
- Close-toe silhouettes grew at twice the pace of group average
- Revenue increase across Americas, EMEA, and APAC
- B2B revenue up 30% to €182m (£150.7m)
- DTC revenue up 11% to €178.5m (£147.8m)
- Gross profit margin down 70 basis points to 60.3%
- Total owned stores increased to 71 with four new openings in Q1 2025
- Guidance for FY25: revenue growth 15-17%, adjusted EBITDA margin 30.8-31.3%
- Continued improvement in gross margin towards 60% target
Birkenstock has reported a strong start to its fiscal year 2025, with a 19% increase in revenues reaching €362m (£299m) for the first quarter ended 31 December 2024. The company’s adjusted EBITDA also increased by 25%, and net profit reached €20m (£16m). The growth was driven by strong consumer demand during the holiday season, particularly for close-toe silhouettes which grew at twice the pace of the group average, increasing their share in business by 600 basis points. Revenues increased across all segments: Americas by 16% to €211m (£174.7m), EMEA by 17% to €103m (£85.29m), and APAC by 47% to €47.1m (£39m). Birkenstock’s B2B revenue grew 30% to €182m (£150.7m) and DTC revenue rose 11% to €178.5m (£147.8m). However, the gross profit margin decreased by 70 basis points to 60.3%, mainly due to an increase in B2B share compared to the previous year. The company opened four new owned stores during Q1 2025, bringing the total number of owned retail stores to 71. Birkenstock maintains its guidance for fiscal year 2025, expecting revenue growth between 15-17% in constant currency, an adjusted EBITDA margin of 30.8-31.3%, and a continued improvement towards the long-term gross margin target of 60%. CEO Oliver Reichert stated that the strong start to the year confirms their ability to meet the guidance.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Birkenstock’s financial performance, including revenue growth, EBITDA, net profit, and gross margin changes. It also includes quotes from the CEO to support the claims made in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about Birkenstock’s financial performance and growth, with specific numbers and details about revenue, EBITDA, and gross profit margin. It also includes insights from the CEO. However, it lacks analysis or exploration of broader trends or consequences beyond the company’s results.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Birkenstock’s financial performance, including revenue growth, adjusted EBITDA, and net profit. It also mentions the company’s guidance for fiscal year 2025. However, it does not directly impact specific financial markets or companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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