Holiday demand propels Germany's Birkenstock into a strong FY25 start

Close-toe silhouettes grew at more than twice the pace of the group average and increased share of business by 600 basis points (bps). Revenue growth was supported by double-digit unit growth and mid-single-digit growth in average selling price (ASP).

The gross profit margin of the company was 60.3 per cent, down 70 basis points (bps) from 61.0 per cent in the first quarter of FY24 primarily due to the increase in business-to-business (B2B) share relative to a year ago. The net profit was €20 million, up from a net loss of €7 million; earning per share (EPS) was €0.11, up from negative €0.04, Birkenstock said in a press release.

In the Americas, the company delivered reported and constant currency revenue growth of 16 per cent in Q1 FY25. B2B growth was 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's revenue in the quarter.

In Europe, Middle East, and Africa (EMEA), Birkenstock continues to see market-leading growth and share gains across the region. Revenue in EMEA grew 17 per cent in Q1 FY25 in reported and constant currency, driven by strong demand in both the B2B and direct-to-consumer (DTC) channels across all countries. Closed-toe penetration increased 400 bps YoY to reach over 50 per cent share of business.

In APAC, Birkenstock achieved revenue growth of 47 per cent on a reported and constant currency basis in the first quarter of 2025. The company 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.

The adjusted net profit of the company was €33 million (~$35.64 million), up 99 per cent from €17 million (~$18.36 million); adjusted (EPS) stood at €0.18, up 100 per cent from €0.09. The adjusted EBITDA reached €102 million, up 25 per cent YoY; adjusted EBITDA margin of 28.2 per cent, up 130 bps from 26.9 per cent a year ago.

“Our results for the first quarter of FY25 reflect the continued strength of our brand throughout the important holiday season. Birkenstock proved to be a high-demand gifting item and must-have for our wholesale partners. Our clogs, other closed-toe shoes and boots performed very well, with share of business up 600 bps year-over-year. We once again saw very strong growth across all our segments, with APAC coming in exceptionally strong as we accelerated the pace of store openings and deliveries to some B2B partners in the quarter. With the strong start to the year, we are confident in our ability to deliver on our guidance for 2025,” said Oliver Reichert, chief-executive officer (CEO) at Birkenstock Group.

The company’s B2B revenue grew 30 per cent on a reported and constant currency basis YoY, supported by strong holiday demand and sell-through. Over 90 per cent of B2B growth 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.

DTC revenue grew 11 per cent as reported and 10 per cent on a constant currency basis against an exceptionally strong 30 per cent growth rate on a constant currency basis in Q1 FY24. The company opened four new owned stores during the first fiscal quarter of 2025, bringing the total number of owned retail stores to 71.

Birkenstock invested €19 million in capital expenditures in Q1 FY25, primarily to expand production capacity.

Outlook

Birkenstock has confirmed its FY25 guidance, projecting revenue growth of 15-17 per cent in constant currency and an adjusted EBITDA margin of 30.8-31.3 per cent. The company expects continued gross margin improvement, moving closer to its long-term target of 60 per cent.

ALCHEMPro News Desk (SG)