Q3 2024 Birkenstock Holding PLC Earnings Call Transcript
Key Points
- Achieved the highest quarterly revenue in company history, driven by 19% revenue growth in constant currency.
- Strong performance in B2B business with 23% growth, indicating robust demand from wholesale partners.
- Digital business continues to perform well with double-digit growth and a 36% increase in membership year over year.
- Significant momentum in new product categories, particularly closed-toe silhouettes, which grew more than double the rate of the overall brand.
- Strong cash flow generation, with EUR281 million in operating cash flow and a net leverage ratio of 2.1x, on track to reach 2x by year-end.
- Gross profit margin down 220 basis points year over year, impacted by capacity expansion and shift in mix from D2C to B2B.
- Adjusted EBITDA margin down 140 basis points from the prior year, affected by temporary and one-time items.
- Ongoing capacity expansion causing a temporary margin drag of 150 basis points for the fiscal year.
- Some regions experienced weather-related impacts, particularly affecting DTC business during rainy weeks.
- Challenges in balancing inventory and meeting demand across different channels, leading to occasional stockouts.
Good morning, and thank you for standing by. Welcome to bargain stocks third quarter of fiscal 2024 earnings conference call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded.
I will now turn the call over to Megan Kulick, Director of Investor Relations.
Hello, and thank you, everyone, for joining us today. On the call are Oliver Reichert, Director of Birkenstock Holding PLC and Chief Executive Officer of the Birkenstock Group; and Erik Massmann, Chief Financial Officer of the Birkenstock Group. Klaus Baumann, Chief Sales Officer; David Kahan, President of Americas; Tiffany Wu, Managing Director of Greater China; Alexander Hoff, Vice President Global Finance, will join us for the Q&A.
Please keep in mind that our fiscal year ends on September 30, thus our third quarter of fiscal 2024 ended on June 30, 2024. You may find the press release and (technical difficulty) supplemental presentation connected to today's discussion
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