BIRKENSTOCK December 18, 2024 BIRKENSTOCK FINANCIAL RESULTS FY24 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 Securit ...

Credit Risk and Financial Exposure - Credit risk exposure: As of September 30, 2024, one customer accounted for 13% of the company's consolidated accounts receivables balance, representing a significant credit concentration[263] - Foreign exchange loss: The company reported a foreign exchange loss of €19.6 million for the year ended September 30, 2024, compared to €36.1 million in the previous year[264] - USD-denominated revenues: A 10% depreciation of the USD against the Euro would result in lower revenues of €75.5 million and a corresponding decrease in adjusted EBITDA of €53.9 million based on the 2024 cost structure[266] - Interest rate risk: A 100 basis points increase in market interest rates would negatively impact net profit by €7.1 million for the year ended September 30, 2024[268] - Foreign currency exposure: The company is significantly exposed to fluctuations in the Euro to USD exchange rate, with a large portion of its indebtedness denominated in USD[279] Revenue and Cost Analysis - Revenue distribution: The Americas accounted for 52% of revenues in fiscal 2024, Europe 36%, and APMA 12%, with APMA showing significant growth potential[275] - Cost of sales increase: Cost of sales increased by €177.9 million (31%) to €744.0 million in fiscal 2024, driven by higher unit sales, premium product mix, and capacity expansion[278] - Inflation impact: Despite high inflation in the EU and US, the company saw strong revenue growth in fiscal 2024, reflecting continued demand for its products[273] Product Portfolio and Market Strategy - Product portfolio: The company's five core silhouettes (Madrid, Arizona, Boston, Gizeh, and Mayari) represent the majority of revenues, with over 700 silhouettes in total[274] - The Company's Chief Sales Officer oversees regional operations in the APMA region, including the 1774 collaboration[300] - The Company's Chief Product Officer oversees all product creation, design, and development[300] Board of Directors and Leadership - Alexandre Arnault has been a Director since October 2023, bringing expertise in fashion, retail, technology, and e-commerce[288] - J. Michael Chu has been a Director since April 2021 and serves as the chair of the board, with extensive experience in global investment and management[288] - Ruth Kennedy has been a Director since September 2023, with a background in luxury brand, retail, and hospitality consultancy[288] - Nisha Kumar has been a Director since October 2023, with experience as Chief Financial Officer and Chief Compliance Officer at Greenbriar Equity Group[290] - Anne Pitcher has been a Director since October 2023, with a career spanning luxury fashion and department store sectors[290] - Nikhil Thukral has been a Director since April 2021, focusing on buyout funds and private equity investments[290] - Oliver Reichert has been the Chief Executive Officer since 2013, leading the company's transformation and innovation[290] - Dr. Erik Massmann was appointed Chief Financial Officer in 2023, bringing over 30 years of financial leadership experience[292] - Markus Baum was appointed Chief Product Officer in 2019, responsible for product creation and sustainability development[293] - Klaus Baumann was appointed Chief Sales Officer in 2015, leading the company's creative and innovation hub, BIRKENSTOCK 1774[293] - The Company's Chief Technical Operations Officer oversees more than 4,000 staff members across manufacturing and logistics sites[295] - The Company's Chief Legal Officer manages a global team of lawyers and legal experts, providing guidance on IP law, compliance, and commercial law[295] Compensation and Incentive Plans - Share-based compensation: The company recognized €3.6 million in share-based compensation expense for the year ended September 30, 2024, compared to €65.4 million in the previous year[283] - Aggregate compensation for senior management for the fiscal year ended September 30, 2024 was €19.9 million, with €0.8 million allocated for pension, retirement, or similar benefits[296] - Non-employee directors receive $125,000 per year in cash compensation and an annual equity grant of restricted share units valued at $75,000 under the 2023 Omnibus Incentive Plan[297] - Senior management members are eligible for discretionary annual cash bonuses based on pre-determined performance criteria, including corporate and individual goals[299] - The Company's 2023 Equity Incentive Plan reserves 11,265,925 ordinary shares for issuance, with no more than 11,265,925 shares available for incentive share options (ISOs)[303] - Non-employee directors are limited to receiving awards valued at $750,000 per fiscal year, with exceptions for new directors or those serving in special roles, where the limit increases to $1,000,000[306] - Senior management members, including executive officers, have the opportunity to acquire indirect ownership in the Company through investments in ManCo, a management ownership vehicle[298] - The company has reserved a total of 3,756,511 ordinary shares for issuance under the Employee Share Purchase Plan[312] - The purchase price of ordinary shares under the Employee Share Purchase Plan is 85% of the lower of the fair market value on the first or final trading day of the offering period[314] - Employees are eligible to participate in the Employee Share Purchase Plan if they meet the eligibility requirements, but cannot own 5% or more of the company's total voting power or value[312] - The Employee Share Purchase Plan allows participants to purchase shares through payroll deductions, with the administrator setting the maximum percentage of eligible compensation that can be deducted[312] - The company may adjust the number of shares subject to the Employee Share Purchase Plan for changes in capitalization or corporate transactions[312] - The Employee Share Purchase Plan is designed to align employee interests with shareholders and provide a retention incentive[309] - The company may modify award terms or establish subplans to comply with non-U.S. laws or stock exchange rules[309] - The Employee Share Purchase Plan permits participants to withdraw and receive accrued payroll deductions or exercise their option at the end of the offering period[314] - The company's clawback policy applies to all awards granted under the Equity Plan, allowing for reduction, cancellation, or recoupment[309] - The Equity Plan remains in effect for ten years unless terminated earlier by the board of directors[309] Workforce and Employment - The company employed approximately 7,400 individuals as of September 30, 2024, including 6,200 full-time employees and 930 contingent workers[321] - Full-time employees were distributed as follows: 360 in corporate-owned stores, 190 in distribution (logistics), 4,140 in production, and 1,500 in selling, general, administrative, and other functions[321] - The workforce was 55% female and represented more than 95 nationalities as of September 30, 2024[321] - The company's workforce increased from approximately 6,300 employees in September 2023 to 7,400 employees in September 2024[321] - The company's production sites in Germany employed approximately 4,140 full-time employees as of September 30, 2024[321] Shareholder and Ownership Structure - Entities affiliated with L Catterton owned 135,218,071 ordinary shares, representing 72.0% of the company's outstanding shares as of November 30, 2024[325] - Financière Agache SA owned 10,352,863 ordinary shares, representing 5.5% of the company's outstanding shares as of November 30, 2024[325] - The company's total number of ordinary shares issued and outstanding as of November 30, 2024, was 187,829,202[324] - As of November 30, 2024, the company had 23 shareholders of record, with approximately 98% of outstanding ordinary shares held by 15 U.S. shareholders[329] Tax and Financial Agreements - The total balance of the Tax Receivable Agreement (TRA) liability as of September 30, 2024, amounted to €359.9 million[329] - The company expects to utilize tax attributes created by the pre-IPO owner, MidCo, which will reduce future tax payments[329] - Payments under the TRA are based on 85% of tax savings from U.S. and German tax attributes, with interest accruing at SOFR plus 3.00% per annum[331] - The TRA liability is measured at amortized cost, considering current expected cash flows and the original effective interest rate[329] - The company may be required to make lump-sum payments under the TRA in certain circumstances, such as early termination or changes of control[331] - Restrictions under the TRA could limit the company's ability to obtain financing, potentially affecting working capital and growth[333] Legal and Governance - The company's board of directors consists of seven members divided into three classes serving staggered three-year terms[317] - The audit committee is composed of Ruth Kennedy, Nisha Kumar, and Anne Pitcher, with Nisha Kumar serving as chairperson[319] - The company has entered into employment and indemnification agreements with executive officers and directors[334] - The company has entered into a Registration Rights Agreement with MidCo, allowing MidCo to require the company to register ordinary shares under the Securities Act and pursue underwritten offerings or block trades[335] - MidCo can issue an unlimited number of demand registration requests and the company will bear all fees, costs, and expenses of registrations, excluding underwriting discounts and commissions[335] - The company has entered into a Shareholders' Agreement with MidCo, granting MidCo the right to designate a majority of the board of directors as long as it owns at least a majority of the company's shares[335] - MidCo is entitled to designate a proportional number of directors based on its ownership percentage if it owns less than a majority but at least 5% of the company's ordinary shares[335] - The company is subject to litigation in the ordinary course of business, but no current legal proceedings are expected to have a material adverse effect on its business or financial position[341] - The company may enter into commercial transactions with L Catterton and its portfolio companies, but none of these transactions are expected to be material[338] - No significant changes have occurred in the company's operations since the date of the financial statements included in the Annual Report, other than those described in the report[343] Dividends and Financial Strategy - The company has not declared or paid cash dividends on its ordinary shares and intends to retain all available funds for business development and expansion[342]

Birkenstock Holding plc BIRK will release its fourth-quarter financial results, before the opening bell, on Wednesday, Dec. 18.Analysts expect the UK-based retailer to report quarterly earnings at 26 cents per share, up from 13 cents per share in the year-ago period. Birkenstock projects quarterly revenue of $439.29 million, compared to $374.54 million a year earlier, according to data from Benzinga Pro.On Aug. 29, Birkenstock posted worse-than-expected third-quarter financial results.Birkenstock shares gai ...

The market expects Birkenstock (BIRK) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be relea ...

Investors might want to bet on Birkenstock (BIRK) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Individ ...

Investors in Birkenstock Holding PLC (BIRK) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $20 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It coul ...

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When valuations are high, even little things can lead to disappointment. Shares of shoe company Birkenstock (BIRK -1.83%) dropped 15.6% during August, according to data provided by S&P Global Market Intelligence. The stock was actually up close to 8% late in the month before shares plunged on Aug. 29. That was the day the company reported financial results for its fiscal third quarter of 2024. As you might have guessed, investors were let down after looking over the numbers. To be clear, it's not because Bi ...

herstockart The Q2 earnings season is coming to a close, and one major trend that has emerged is a big beating in consumer discretionary names. Across restaurant stocks, food, and retail names, we've seen the impacts of weaker consumer spending starting to color near-term results. Birkenstock (NYSE:BIRK), the German shoemaker, has been one of the unfortunate laggards within this group. After an impressive year-to-date rally, Birkenstock shares have fallen more than 20% after reporting lackluster Q2 results, ...

herstockart Birkenstock's (NYSE:BIRK) Q3 2024 was great, with the company growing impressively behind challenging figures for most peers. Despite this, the stock price collapsed because of a revenue and earnings miss. Like Abercrombie & Fitch (ANF) this earnings season, the BIRK price collapse is a warning against buying a growing business at high valuations. Even when things work great, the stock may collapse. Apart from that price event, the result and the call did not provide much new information. Howeve ...