BIRKENSTOCK FINANCIAL RESULTS Q2 FY25 May 15, 2025 FINANCIAL RESULTS Q2 FY25 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this presentation (the "Presentation") of Birkenstock Holding plc (together with all of its subsidiaries, the "Company," "Birkenstock," "we," "our," "ours," or "us") may constitute "forward-looking" statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, ...

Core Viewpoint - Telsey Advisory Group analyst Dana Telsey maintains an Outperform rating on Birkenstock Holding (BIRK) with a price target of $70, anticipating strong revenue growth and margin improvements in the upcoming second-quarter results [1]. Revenue and Earnings Forecast - Total revenue is projected to grow by 17.7% year-over-year to €566.4 million, slightly below the consensus estimate of €568.2 million [1]. - Adjusted EBITDA is estimated at €193.3 million, up from €162.3 million in the prior-year quarter, closely aligning with the consensus view of €192.9 million, resulting in an adjusted EBITDA margin of 34.1% [5]. Margin Analysis - A gross margin expansion of 30 basis points to 56.6% is expected, marginally exceeding the consensus forecast of 56.5% [2]. - Operating expenses are anticipated to remain flat year-over-year at 27.6%, slightly below the consensus figure of 27.7%, leading to a projected 180-basis-point improvement in pretax profit margin to 24.8%, just under the Street's expectation of a 230-basis-point rise to 25.3% [4]. Market Position and Strategy - Birkenstock benefits from a relative advantage in tariff exposure, manufacturing in Germany and deriving only 52% of its fiscal 2024 revenue from the Americas, which limits vulnerability compared to footwear industry peers [3]. - The company is successfully expanding its closed-toe shoe segment and driving average selling price growth, positioning itself well in a market where consumers are becoming more selective with spending [6]. Current Stock Performance - BIRK shares are currently trading lower by 0.36% at $52.28 [7].

Core Viewpoint - The market anticipates Birkenstock (BIRK) to report a year-over-year increase in earnings driven by higher revenues for the quarter ending March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Birkenstock is $0.57 per share, reflecting a year-over-year increase of +29.6% [3]. - Expected revenues are projected at $610.3 million, which is a 16.8% increase from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.86% higher, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Birkenstock is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.20% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Birkenstock currently holds a Zacks Rank of 2, suggesting a high likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Birkenstock exceeded the expected earnings of $0.16 per share by delivering $0.19, resulting in a surprise of +18.75% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Birkenstock is positioned as a compelling candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [16].

Group 1 - Birkenstock (BIRK) shares have increased by 17.3% over the past four weeks, closing at $51.46, with a mean price target of $68.15 indicating a potential upside of 32.4% [1] - The average of 17 short-term price targets ranges from a low of $57 to a high of $95, with a standard deviation of $9.66, suggesting a variability in analyst estimates [2] - Analysts have shown a strong agreement in revising earnings estimates higher, which correlates with potential stock price movements [11][12] Group 2 - The Zacks Consensus Estimate for the current year has increased by 1.8% over the past month, with three estimates going higher and no negative revisions [12] - Birkenstock currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of the extent of potential gains, it does provide a directional guide for price movement [13]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

Group 1 - The analyst previously held a "hold" rating on Birkenstock (NYSE: BIRK) stock but has changed the stance due to a significant decrease in valuation after a sell-down [1] - The analyst emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1] Group 2 - The article serves as a platform for tracking investment ideas and connecting with like-minded investors [1]

Group 1 - The current earnings season presents a favorable opportunity for active investing, particularly in growth stocks that are undervalued due to weak post-earnings reactions [1] - There is an emphasis on increasing exposure to "growth at a reasonable price" as many attractive growth stocks are available [1] - The analyst, Gary Alexander, has extensive experience in technology sectors and has been contributing insights on platforms like Seeking Alpha since 2017 [1] Group 2 - The article does not provide any specific financial data or performance metrics related to companies or industries [2][3]

February 20, 2025 BIRKENSTOCK FINANCIAL RESULTS Q1 FY25 Certain statements in this presentation (the "Presentation") of Birkenstock Holding plc (together with all of its subsidiaries, the "Company," "Birkenstock," "we," "our," "ours," or "us") may constitute "forward-looking" statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litig ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of €362 million, representing a 19% growth year-over-year, exceeding the annual guidance of 15% to 17% [28][12] - Gross margin for the quarter was 60.3%, slightly down 70 basis points year-over-year due to a higher B2B mix [30][28] - EBITDA for Q1 was €102 million, up 25% year-over-year, with an EBITDA margin of 28.2%, an increase of 130 basis points year-over-year [31][28] - Adjusted net profit was €33 million, up 99% year-over-year, with earnings per share at €0.18, also up 100% from a year ago [31][28] Business Line Data and Key Metrics Changes - B2B revenue grew by 30% in the first quarter, while DTC revenue increased by 10% [28][12] - DTC share of business was 49%, down 400 basis points from a year ago [29] - Revenue from closed-toe silhouettes grew at over twice the rate of the overall group, accounting for over half of the revenue in the quarter [13][14] Market Data and Key Metrics Changes - The Americas region saw a revenue increase of 16% compared to Q1 2024, with closed-toe products making up nearly two-thirds of the business [18][20] - EMEA delivered growth of 17%, with closed-toe products growing over 2.5 times faster than sandals [20][21] - The APAC region was the fastest-growing segment, with a growth rate of 47%, now representing 13% of total revenue, up from 10.5% a year ago [23][24] Company Strategy and Development Direction - The company aims to balance growth between DTC and B2B channels, with expectations for DTC to slightly outpace B2B in the second half of the year [16][34] - The focus is on expanding into white space opportunities, particularly in closed-toe shoes, owned retail, and the APAC region [39][13] - The company plans to open additional retail stores, aiming to increase the total from 71 to closer to 100 by the end of the fiscal year [132][131] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong consumer demand despite macroeconomic uncertainties, including inflation and potential tariffs [44][43] - The company reiterated its revenue growth forecast of 15% to 17% for the year, with expectations for improved gross profit margins as production efficiency increases [35][34] - Management highlighted the importance of maintaining a healthy stock-to-sales ratio and the strategy of engineered distribution to manage growth [89][90] Other Important Information - The company ended the quarter with cash and cash equivalents of €299 million, down from €356 million at the end of fiscal 2024 [32] - The inventory-to-sales ratio improved to 39%, down from 42% in Q1 2024 [32] Q&A Session Summary Question: Why isn't the company raising the full-year guidance despite a strong Q1? - Management noted that Q1 is the smallest quarter of the year, comprising only 17% of total annual revenue, and cited macroeconomic uncertainties as reasons for maintaining guidance [43][44] Question: What drove the strong B2B growth? - Management indicated that strong sell-through rates and increased shelf space allocation by wholesale partners contributed to the B2B growth [46][47] Question: What are the biggest challenges for the new CFO? - The new CFO highlighted the need to scale systems and infrastructure in line with rapid growth as a key challenge [55] Question: What is the outlook for gross margin in the coming quarters? - Management expects a modest improvement in gross margin in the second half of the year, driven by increased factory utilization [72][73] Question: How is the company addressing potential tariffs? - The company plans to monitor tariffs closely and has historically been able to offset inflationary pressures through pricing adjustments [140][141]

Core Insights - Birkenstock reported better-than-expected earnings per share (EPS) of EUR 0.18, surpassing the forecast of EUR 0.17, while revenue of EUR 362 million fell short of the expected EUR 373 million, indicating strong demand despite sales challenges [2][3][6] Financial Performance - Adjusted EPS for Q1 2025 was EUR 0.18, a 100% increase year-over-year from EUR 0.09 in Q1 2024 [3] - Revenue increased by 19.5% year-over-year to EUR 362 million, compared to EUR 303 million in Q1 2024 [3][6] - Adjusted net profit rose to EUR 33 million, up 94.1% from EUR 17 million in the previous year [3] - Adjusted EBITDA reached EUR 102 million, reflecting a 25.9% increase from EUR 81 million in Q1 2024 [3] Regional Performance - The Americas region experienced a 16% revenue increase, driven by strong demand for closed-toe products [7] - EMEA region saw a 17% growth, while APAC reported a remarkable 47% increase, highlighting successful strategic investments [7] Business Strategy - The company is focusing on expanding its retail presence in under-penetrated markets and investing in geographic growth [5] - A strategic emphasis on B2B channels contributed to a 30% revenue rise in this segment, although it slightly impacted gross profit margin, which decreased by 0.7 percentage points to 60.3% [8] - An investment of EUR 19 million was made to enhance production capacity, ensuring the company can meet future demand [8] Future Outlook - For fiscal 2025, Birkenstock projects revenue growth between 15% and 17% and targets an adjusted EBITDA margin of 30.8% to 31.3% [9] - The company plans to open 30 new stores and expand its geographic footprint, particularly in the promising APAC region [9]