The following is a summary of the Birkenstock Holding Plc (BIRK) Q3 2024 Earnings Call Transcript:
Financial Performance:
Birkenstock achieved the highest quarterly revenue in its history in Q3 2024, with a record 19% revenue growth in constant currency.
The gross profit margin was 59.5%, with a sequential increase of 320 basis points, despite being 220 basis points lower compared to the previous year, mainly due to the shift from D2C to B2B channels.
Third quarter adjusted EBITDA reached EUR 186 million, marking the strongest quarterly EBITDA in company history, up 15% versus the previous year.
Adjusted net profit increased by 14% with adjusted earnings per share at EUR 0.49, up 11%.
Cash and equivalents stood at EUR 404 million as of June 30, 2024, with operating cash flow at EUR 281 million, reflecting a 19% year-over-year increase.
Business Progress:
Significant retail expansion noted with the opening of seven new stores in Q3, bringing the total to 64 stores globally, enhancing the physical brand touchpoints.
The Membership program grew by 36% year-over-year, reflecting enhanced consumer engagement and loyalty.
Continued strong performance in newer product lines, such as closed-toe silhouettes, which saw double the growth rate of the brand overall.
Further expansion in APMA region, including new store openings in India and Japan, contributing to a 41% revenue growth in the area.
Strategic shifts in European operations, such as phasing out distributors for direct distribution, which bolstered regional performance.
Risks:
A noticeable shift toward in-person shopping could impact the dynamics of online sales, requiring adjustments in digital and physical sales strategies.
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