Footwear giant Birkenstock beat its revenue expectations in its first fiscal year as a public company and shared its guidance for the next fiscal year on its Dec. 18 earnings call.
Birkenstock grew its revenue to EUR 1.8 billion, a 21% increase compared to last year, which exceeds the company’s previous guidance of 20% growth. Its adjusted EBITDA margin for fiscal 2024 was 30.8%, again beating the company’s 30% to 30.5% target.
“We are delivering on the commitments we made during our IPO by expanding profitably into the white-space opportunities we identified: Closed-toe silhouettes, orthopedics, professional, outdoor, the APMA region and our own retail,” said Oliver Reichert, Birkenstock’s CEO and a member of the board of directors, in a statement.
Birkenstock’s net profit was EUR 192 million, a 155% increase year-over-year. Its adjusted net profit was EUR 240 million, an increase of 16% year-over-year.
Birkenstock reported that DTC revenue grew 21% and B2B revenue grew 23% on a constant currency basis in fiscal 2024.
“As we continue to gain the attention of consumers and wholesale partners, we are seeing strong, balanced growth in both our DTC and B2B channels,” Reichert said. “Both of these channels are highly profitable and allow us to maximize our reach, especially into new targeted consumer groups.”
Birkenstock’s revenue grew by:
- 19% in the Americas.
- 21% in Europe.
- 42% in APMA.
Revenue from closed-toe styles such as the trendy Boston grew more than twice the average of the brand’s other styles and now makes up one-third of its business.
Birkenstock’s Fourth-Quarter Results
In the fourth quarter ended Sept. 30, Birkenstock’s revenue grew by 22% to EUR 456 million.
DTC revenue grew by 18% compared to the same quarter last year, and B2B revenue grew by 26% in the quarter.
Revenue grew by 38% in APMA, 21% in the Americas, and 19% in Europe.
Birkenstock’s net profit was EUR 52 million, up from a net loss of EUR 28 million in the same quarter the previous year.
Birkenstock’s Future Outlook
Birkenstock also shared its guidance for fiscal year 2025.
“As we look into 2025 and beyond, we are confident in our ability to deliver on our medium to long-term objectives for mid-to-high teens revenue growth, gross profit margin of around 60% and Adjusted EBITDA margin of over 30%,” Reichert said.
Revenue is expected to grow by 15% to 17%, and adjusted EBITDA margin will be 30.8% to 31.3%, an increase of up to 50 basis points compared to fiscal 2024.
