Birkenstock Holding plc (Group) reported first quarter revenue growth of 19 percent on both a reported and constant-currency basis for the three-month period ended December 31, 2024, exceeding the company’s annual guidance for 15 percent to 17 percent growth.

Birkenstock reports in the euro (€) currency.

Growth was said to be driven by strong holiday demand for its products across all segments, channels and categories. Revenue for the quarter amounted to €361.7 million, beating consensus estimates for €355.4 million for the period.

BIRK shares were down early in pre-market trading on Thursday, despite the top- and bottom-line beat against consensus estimates as the company maintained its full-year forecast.

Close-toe silhouettes reportedly grew at more than double the pace of the Group average and increased the share of business by 600 basis points. Revenue growth was supported by double-digit unit growth and mid-single-digit growth in Average Selling Prices (ASPs).

The Group posted strong double-digit revenue growth across all segments including 16 percent growth in the Americas, a 17 percent increase in EMEA and a 47 percent jump in APAC in both reported and constant-currency (cc) terms.

Fiscal First Quarter Channel and Segment Results
(in € thousands)


Channel Summary
Wholesale (B2B) revenue grew 30 percent on a reported and constant-currency basis year-over-year, said to be supported by strong holiday demand and sell-through. Over 90 percent of B2B growth reportedly came from within existing doors as key retail partners continue to expand the breadth and depth of their Birkenstock offerings, including a growing assortment of closed-toe silhouettes.

Direct-to-Consumer (DTC) revenue grew 11 percent year-over-year as reported and 10 percent on a constant-currency basis, cycling against an exceptionally strong 30 percent growth rate on a constant-currency basis in the first fiscal quarter of 2024.

The company opened four new owned stores during the first fiscal quarter of 2025, bringing the total number of owned retail stores to 71 doors.

Segment Summary
In the Americas segment, Birkenstock said it delivered reported and constant-currency revenue growth of 16 percent in the first quarter of fiscal 2025. B2B growth was said to be especially strong as key wholesale partners allocated more space to support strong holiday demand for Birkenstock. Closed-toe, driven by the clog category, accounted for nearly two-thirds of the America region’s revenue in the quarter.

In the EMEA segment, Birkenstock said it continues to see market-leading growth and share gains across the region. Revenue in EMEA grew 17 percent in the first quarter of 2025 in both reported and constant-currency terms, driven by strong demand in both the B2B and DTC channels across all countries. Closed-toe penetration increased 400 basis points year-over-year to reach over 50 percent share of business.

In the APAC segment, Birkenstock reportedly achieved revenue growth of 47 percent on both a reported and constant-currency basis in the first quarter of 2025. The company said it continues to invest in this important growth segment and increase brand awareness by expanding its physical presence with the opening of several new owned and partner mono-brand stores.

Income Statement Summary
Gross profit margin came in at 60.3 percent of revenue in Q1, down 70 basis points from 61.0 percent in the first quarter of 2024, said to be primarily due to the increase in B2B share relative to a year ago.

Net profit was €20 million in Q1, compared to a net loss of €7 million; earnings per share (EPS) was €0.11 in Q1, up from a loss of €0.04 per share in the prior-year first quarter.

The company posted Adjusted net profit of €33 million, compared to Adjusted net profit of €17 million in the prior-year Q1 period. Adjusted EPS amounted to €0.18 per share in Q1, compared to €0.09 Adjusted EPS in the prior-year Q1 period and the consensus estimate of €0.16 per share.

Adjusted EBITDA amounted to €102 million, up 25 percent year-over-year, representing an Adjusted EBITDA margin of 28.2 percent of revenue, up 130 basis points from 26.9 percent in the year-ago comparative quarter.

Investing in Production Capacity
Birkenstock reportedly invested €19 million in capital expenditures in the first quarter of 2025, primarily to expand production capacity.

Cash flows used in operating activities were €12 million, an improvement of €34 million from the prior-year Q1 period.

Birkenstock ended the quarter with cash and cash equivalents of €299 million and net leverage of 1.9x as of December 31, 2024, up slightly from 1.8x at September 30, 2024 due to the normal seasonality in working capital. The Company remains committed to further deleveraging its balance sheet with free cash flow throughout the remainder of Fiscal 2025.

Outlook
Birkenstock is confirming its previous guidance for fiscal year 2025:

  • Revenue growth of 15 percent to 17 percent in constant-currency terms;
  • Adjusted EBITDA margin of 30.8 percent to 31.3 percent; and
  • Gross margin improvement, moving closer to its long-term target of 60 percent.

Internal Segment Reporting Changes
As previously announced, beginning with the quarter ended December 31, 2024, the company made the following changes to its internal and external segment reporting:

  • Middle East and Africa regions (part of “APMA” prior to fiscal 2025) were merged with the Europe operating segment to create a new Europe, Middle East and Africa (“EMEA”) reporting and operating segment;
  • India (part of “APMA” prior to fiscal 2025) was merged with the remaining Asia Pacific countries to create a new Asia Pacific (“APAC”) reporting and operating segment; and
  • No change to the Americas’ segment.

The new reporting segments, Americas, EMEA and APAC are effective as of this fiscal first quarter report.

Images courtesy of Birkenstock Holding plc