Revenue Growth - Revenue for the three months ended December 31, 2024, was €361.7 million, representing a 19% increase on both a reported and constant currency basis[107] - Strong revenue growth across all segments: 16% in the Americas, 17% in EMEA, and 47% in APAC, all on a reported and constant currency basis[107] - Revenue for the three months ended December 31, 2024 increased by €58.8 million, or 19%, to €361.7 million from €302.9 million for the same period in 2023[148] - B2B revenue increased by €41.6 million, or 30%, to €182.0 million for the three months ended December 31, 2024, driven by strong growth across all regions[152] - DTC revenue increased by €17.9 million, or 11%, to €178.5 million for the three months ended December 31, 2024, resulting in a DTC penetration of 49%[153] - Revenue in the APAC segment increased by €15.0 million, or 47%, to €47.1 million, driven by growth in both B2B and DTC channels[172] Profitability - Adjusted EBITDA for the period was €102.1 million, a 25% year-over-year increase, with an adjusted EBITDA margin of 28.2%, up 130 basis points from the previous year[107] - Net profit reached €20.1 million, a significant recovery from a net loss of €7.2 million in the prior year, with earnings per share (EPS) of €0.11[107] - Adjusted net profit was €33.3 million, up 99% from €16.7 million, resulting in an adjusted net profit margin of 9.2%[107] - Adjusted net profit for the three months ended December 31, 2024 was €33.3 million, compared to €16.7 million for the same period in 2023, reflecting a significant increase[125] - Net profit for the three months ended December 31, 2024 was €20.1 million, a turnaround from a net loss of €7.2 million in the same period of 2023[148] - Gross profit for the three months ended December 31, 2024 was €218.0 million, an increase of €33.2 million, or 18%, compared to the same period in 2023[148] Cost and Expenses - Gross profit margin was 60.3%, a decrease of 70 basis points from 61.0% in the first quarter of 2024, primarily due to an increase in B2B share[107] - Cost of sales for the three months ended December 31, 2024 increased by €25.6 million, or 22%, to €143.7 million, primarily due to an increase in the number of units sold[155] - General and administrative expenses decreased by €10.3 million, or 30%, to €24.1 million for the three months ended December 31, 2024[148] - Selling and distribution expenses increased by €14.7 million, or 14%, to €118.2 million, while as a percentage of revenue, these expenses decreased to 32.7% from 34.2%[160] - General and administrative expenses decreased by €10.3 million, or 30%, to €24.1 million, primarily due to non-recurring IPO-related costs incurred in the previous year[161] Cash Flow and Financing - Cash flows used in operating activities improved to €11.6 million from €45.4 million a year ago[107] - Cash flows used in operating activities for Q4 2024 were €11.6 million, a decrease of 74.5% from €45.4 million in Q4 2023, driven by a net profit of €20.1 million and cash outflows from working capital of €67.7 million[182][183] - Cash flows used in investing activities increased to €15.0 million in Q4 2024 from €8.6 million in Q4 2023, primarily due to a decrease in government grant receipts by €6.9 million[184] - Cash flows used in financing activities decreased significantly to €33.0 million in Q4 2024 from €119.8 million in Q4 2023, mainly due to lower loan repayments of €522.4 million and reduced cash interest paid of €16.2 million[185] - Total loans and borrowings as of December 31, 2024, amounted to €1,202.7 million, reflecting an increase from €1,194.6 million as of September 30, 2024[188][189] Market and Operational Risks - The company is exposed to market risks, particularly foreign exchange and interest rate risks, which could impact financial performance[191] - The company faces intense competition and must adapt to changing consumer preferences to maintain market share[198] - Future growth strategies include expanding direct-to-consumer (DTC) channels and enhancing e-commerce platforms[198] - The company faces risks related to regulations governing the use and processing of personal data, as well as potential disruptions and security breaches affecting IT systems[201] - Economic conditions impacting consumer spending, such as inflation, pose significant risks to the company's performance[201] - Currency exchange rate fluctuations are a concern for the company's financial stability[201] - The company is exposed to risks related to litigation, compliance, and regulatory matters[201] - Corporate responsibility and ESG-related risks and costs are factors that the company must manage[201] - The company faces risks associated with its level of indebtedness and the ability to repay its debt[201] - Material weaknesses identified in the company's internal control over financial reporting need to be remediated[201] - The company operates as a foreign private issuer and a "controlled company," which presents unique risks under NYSE rules[201] - Inadequate insurance coverage or increased insurance costs could impact the company's financial health[201] - Tax-related risks are also a consideration for the company's overall risk profile[201]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Core Viewpoint - Ivica Krolo has been appointed as the new Chief Financial Officer (CFO) of the Birkenstock Group, indicating a strategic move to enhance the company's financial leadership and operational efficiency [1] Group 1: Appointment Details - Ivica Krolo brings over 20 years of experience in finance and management, having held senior positions in various international companies [1] - The appointment is part of Birkenstock's ongoing efforts to strengthen its executive team as it prepares for future growth [1] Group 2: Company Strategy - The Birkenstock Group aims to leverage Krolo's expertise to navigate the complexities of the financial landscape and drive sustainable growth [1] - The company is focused on expanding its market presence and enhancing its brand value in the global footwear industry [1]

With 2025 starting on a slightly down note, we note that many investors are probably sounding off cautious alarms on last year's big, momentum-driven winners. Against this backdrop, I continue to favor "growth at a reasonable price" stocks for my portfolio, especially those that have exhibited choppierWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of ...

I give a hold rating for Birkenstock (NYSE: BIRK ) as I do not see any upside to where the share price is today. On BIRK’s fundamentals, I think it's great, and the outlook is very positive with potential forI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historica ...

Telsey Advisory Group analyst Dana Telsey reiterated the Outperform rating on Birkenstock Holding plc BIRK with a price forecast of $70.Yesterday, the company reported fourth-quarter fiscal 2024 results, with revenue growing 22% year over year on a reported and constant currency basis to 456 million euros.The analyst notes that management is observing positive momentum across the entire closed-toe category, ranging from clogs to boots.In the U.S., Birkenstock is experiencing strong demand for clogs, particu ...

As of Dec. 19, 2024, three stocks in the consumer discretionary sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, a ...

Financial Data and Key Metrics Changes - Birkenstock reported a strong fiscal 2024 with a revenue growth of 22% in constant currency, achieving over EUR 1.8 billion in total revenue, surpassing the expected growth of 20% [12][32] - Adjusted EBITDA margin for fiscal 2024 was 30.8%, exceeding expectations, while adjusted net profit for the fourth quarter was EUR 55 million, up 180% year-over-year [13][39] - Gross profit margin for the fourth quarter was 59%, with a full-year gross profit margin of 58.8%, down 330 basis points from the previous year [36][38] Business Line Data and Key Metrics Changes - Revenue from closed-toe silhouettes grew at over twice the rate of the overall group, accounting for about one-third of the business [13][14] - The APMA business segment grew by 42%, nearly doubling the pace of the overall business, while own retail revenue grew over two times the overall business growth [14][27] - The wholesale business increased by 23% in fiscal 2024, with over 90% of growth coming from existing doors [16][17] Market Data and Key Metrics Changes - Revenue in the Americas increased by 19% compared to fiscal 2023, with a notable return to in-person shopping [20][21] - Europe experienced exceptional growth of 21%, driven by improved distribution quality and increased brand awareness [22][24] - The APMA region, while still only 12% of overall revenue, is seen as a significant growth opportunity, with 13 new retail stores added [27][28] Company Strategy and Development Direction - The company aims to balance growth between B2B and DTC channels, with a focus on expanding into under-penetrated product categories and regions [12][18] - Birkenstock plans to open 50% more stores in fiscal 2025, with a disciplined approach to location selection [86] - The company is committed to maintaining brand health and full-price realization while tapping into white space markets, particularly in the APMA region [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of 15% to 17% in fiscal 2025, supported by strong holiday season performance [51][52] - The company anticipates improvements in gross margin as production efficiency increases, targeting a gross margin closer to 60% [43][44] - Management highlighted the importance of disciplined distribution and brand strength, which has allowed them to maintain high full-price realization rates [46][125] Other Important Information - The company will change its segment reporting structure starting in fiscal 2025, merging the Middle East and Africa with Europe to create a new EMEA segment [8][9] - Birkenstock's cash and cash equivalents were EUR 356 million as of September 30, 2024, with a net leverage ratio of 1.8x, below the target of 2.0x [40][42] Q&A Session Summary Question: What is the rationale behind the 15% to 17% growth guidance? - Management believes this pace is appropriate for long-term health, with strong demand expected to continue [51][52] Question: How are DTC and B2B performing in Q1? - DTC is expected to grow, particularly with new store openings, while B2B remains strong with existing partners [55][56] Question: What is the outlook for gross margin in 2025? - Management expects a modest improvement in gross margin, with a clearer trend emerging in the latter half of the year [63][70] Question: How is the closed-toe category performing? - Closed-toe offerings are growing significantly, with expectations for increased share in the future [91][96] Question: What are the growth plans for the APMA region? - The company plans to grow the APMA region at double the speed of mature markets, with a focus on balanced growth across all areas [113][114]

Shares of sandal company Birkenstock (BIRK 5.57%) jumped on Wednesday after the company reported its financial results for its fiscal fourth quarter of 2024, capping off a strong year of growth and profitability. As of 9:45 a.m. ET, Birkenstock stock was up 7% but it had been up as much as 12% earlier in the day.One of the market's oldest companies just keeps growingBirkenstock had a great fiscal 2024. The fiscal year ended on Sept. 30 and during those 12 months, revenue jumped by 21% from its fiscal 2023. ...

Company Performance - Birkenstock Holdings PLC (NYSE:BIRK) shares increased by 8.8% to $61.00, reaching a high of $62.45 after reporting better-than-expected fiscal fourth-quarter earnings and revenue [1] - The popularity of close-toed clogs significantly contributed to the sales boost, prompting Piper Sandler to raise its price target to $70, indicating a 15% premium over the current stock price [1] Stock Activity - The stock is currently trading at its highest level since the record high of $64.78 on August 26, 2023, and has a year-to-date gain of 23.2% [2] - There has been increased activity in the options market, with 4,814 calls and 1,530 puts exchanged, which is 2.3 times the average daily options volume [2] Short Interest - A portion of the stock's price increase may be attributed to short covering, as short interest accounts for 10.8% of the stock's available float, equating to over three days' worth of buying power [3]