Birkenstock Reports Record First Quarter Revenue and Affirms Fiscal 2024 Guidance Amid Strong Demand Growth
1 March 2024
Birkenstock Holding has released its financial results for the first quarter of fiscal 2024, concluding on December 31, 2023. The company has reported record revenue for the first quarter of 2024, propelled by strong demand for its products across all regions, channels, and categories. Birkenstock remains steadfast in its fiscal 2024 guidance, announced one month earlier, along with its mid-term profitability objectives, which include achieving a gross profit margin exceeding 60% and an adjusted EBITDA margin in the low thirties percent.
In the first fiscal quarter of 2024, Birkenstock saw substantial revenue growth, reaching EUR 303 million, a 22% increase on a reported basis and an impressive 26% rise on a constant currency basis, driven by strong performances across all regions, notably in the Americas, Europe, and APMA. The company experienced a notable increase in DTC penetration, reaching 53% of revenue, alongside a 30% constant currency increase in DTC revenue. B2B constant currency revenue also expanded by 22%. Despite a slight dip in gross profit margin to 61.0%, Birkenstock reported improved profitability metrics, with profit before tax increasing to EUR (0) million and adjusted profit before tax rising to EUR 33 million. Earnings per share improved to EUR (0.04) from EUR (0.05), while adjusted EPS decreased to EUR 0.09 and adjusted net profit totalled EUR 17 million. Adjusted EBITDA saw a 12% increase to EUR 81 million, although the adjusted EBITDA margin decreased to 26.9%, attributed to ongoing capacity expansion and adverse currency effects. Operating cash flows improved to EUR 45 million, reflecting increased seasonal inventory preparations for the upcoming Spring/Summer 2024 season.
Oliver Reichert, CEO of Birkenstock Group and Member of the Board of Directors of the Company commented on the results: “Our results for the first quarter of 2024 once again demonstrate the resilience of our business model and the strong sustained demand for our products. Given our engineered distribution model, demand continues to outpace supply in all regions, channels and categories. As previously communicated, our strategic investments into future growth are having a planned, temporary impact on our profitability. However, in the medium-term, we are confident we will continue to deliver our objectives of a gross profit margin over 60% and an adjusted EBITDA margin in the low thirties percent.”
Given the sustained momentum, Birkenstock expresses increased confidence in its fiscal 2024 guidance. Capacity expansion efforts are progressing as planned, and the company remains proactive in mitigating the impact of inflation. Consequently, Birkenstock reaffirms its dedication to achieving mid-term profitability objectives, aiming for a gross profit margin surpassing 60% and an adjusted EBITDA margin in the low thirties percent.
