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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