Birkenstock’s revenues grew 21 percent in its fiscal nine months ended June 30 due to broad-based growth across regions and channels, according to an updated regulatory filing tied to its initial public offering.
The German-based company filed for an IPO in the U.S. on September 12 but the initial prospectus only showed financial results for the six months through March 31.
Extrapolating six-month results from nine-month results shows sales in the fiscal third quarter rose 25.0 percent to €473.2 million from €378.79 million a year ago. Adjusted EBITDA climbed 26.6 percent to €162.6 million from €128.4 million. Net profit after adjustments for the IPO transaction totaled €63.1 million against €55.6 million a year ago.
The updated filing shows that the 21 percent gain in the nine months was driven by an increase in the number of units sold of 6 percent as well as an increase in ASP (average selling prices) of 15 percent. The ASP increase was driven by higher DTC and closed-toe silhouette penetration, the effect of a retail price increase in December 2021, and the appreciation of the U.S. dollar relative to the Euro. On a constant currency basis, revenues increased 19 percent.
By channel, revenues generated by B2B or wholesale channels increased 15 percent in the nine months to €697.4 million. The increase was primarily driven by strong growth across all regions, further supported by an overall increase in the number of units sold as well as a favorable category mix shift towards higher ASP product categories and the effect of the retail price increase implemented in December 2021.
Revenues generated by the DTC channel climbed 34 percent to €416.1 million, primarily attributable to growth in the number of units sold, increased traffic and higher average order values resulting from price increases and product mix, offset by the strategic consolidation of retail stores in Europe, whereby legacy stores were closed to focus on premium full-price stores, that temporarily led to fewer stores. Outsized growth in strategic product categories with higher price points, such as closed-toe silhouettes, leather products and shearling products that are predominately sold in Birkenstock-owned channels, positively contributed to an increased DTC penetration of 37 percent in the latest nine months, up from 34 percent for the same period in 2022.
By region, revenues for the Americas segment increased 18 percent, to €617.5 million, driven primarily by increased revenues in its DTC channel, which demonstrated growth in both unit volumes sold and ASP, as well as, to a lesser extent, growth in the B2B business.
Revenues for the Europe segment climbed 24 percent, to €386.0 million, driven by strong sales in both the B2B and DTC channels. Revenues for the APMA segment gained 32 percent, to €110.0 million, driven by approximately 10 new retail store openings in the APMA region, strong online sales, and growth within the B2B channel.
Gross margins in the nine months expanded to 61 percent for the latest nine months from 59 percent for the year-ago nine months, reflecting higher ASP resulting from price increases and an increased DTC share. Adjusted gross profit margin decreased to 61 percent from 62 percent a year ago.
Net profit decreased 20.0 percent to €103.3 million from €129.1 million a year ago. Adjusted EBITDA grew 16 percent to €387.0 million from €332.5 million a year ago with adjusted EBITDA margin contracting 1 percentage point to 35 percent.
Birkenstock has not announced how many shares it or its shareholders plan to sell in the IPO. The IPO, expected to come to market in early October, could be valued at more than $8 billion, according to Bloomberg.
Photo courtesy Birkenstock