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]

Core Insights - Birkenstock reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.09 per share a year ago, resulting in an earnings surprise of 18.75% [1] - The company achieved revenues of $385.88 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.18% and increasing from $326.19 million year-over-year [2] - Birkenstock shares have underperformed the market, losing about 3.5% since the beginning of the year compared to the S&P 500's gain of 4.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $588.35 million, and for the current fiscal year, it is $1.77 on revenues of $2.2 billion [7] - The estimate revisions trend for Birkenstock is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Shoes and Retail Apparel industry, to which Birkenstock belongs, is currently in the bottom 13% of over 250 Zacks industries, which may impact stock performance [8] - Nike, another company in the same industry, is expected to report quarterly earnings of $0.28 per share, reflecting a year-over-year decline of 71.4% [9]

Revenue Growth - Revenue for the three months ended December 31, 2024, was €361.7 million, representing a 19% increase on both a reported and constant currency basis[107] - Strong revenue growth across all segments: 16% in the Americas, 17% in EMEA, and 47% in APAC, all on a reported and constant currency basis[107] - Revenue for the three months ended December 31, 2024 increased by €58.8 million, or 19%, to €361.7 million from €302.9 million for the same period in 2023[148] - B2B revenue increased by €41.6 million, or 30%, to €182.0 million for the three months ended December 31, 2024, driven by strong growth across all regions[152] - DTC revenue increased by €17.9 million, or 11%, to €178.5 million for the three months ended December 31, 2024, resulting in a DTC penetration of 49%[153] - Revenue in the APAC segment increased by €15.0 million, or 47%, to €47.1 million, driven by growth in both B2B and DTC channels[172] Profitability - Adjusted EBITDA for the period was €102.1 million, a 25% year-over-year increase, with an adjusted EBITDA margin of 28.2%, up 130 basis points from the previous year[107] - Net profit reached €20.1 million, a significant recovery from a net loss of €7.2 million in the prior year, with earnings per share (EPS) of €0.11[107] - Adjusted net profit was €33.3 million, up 99% from €16.7 million, resulting in an adjusted net profit margin of 9.2%[107] - Adjusted net profit for the three months ended December 31, 2024 was €33.3 million, compared to €16.7 million for the same period in 2023, reflecting a significant increase[125] - Net profit for the three months ended December 31, 2024 was €20.1 million, a turnaround from a net loss of €7.2 million in the same period of 2023[148] - Gross profit for the three months ended December 31, 2024 was €218.0 million, an increase of €33.2 million, or 18%, compared to the same period in 2023[148] Cost and Expenses - Gross profit margin was 60.3%, a decrease of 70 basis points from 61.0% in the first quarter of 2024, primarily due to an increase in B2B share[107] - Cost of sales for the three months ended December 31, 2024 increased by €25.6 million, or 22%, to €143.7 million, primarily due to an increase in the number of units sold[155] - General and administrative expenses decreased by €10.3 million, or 30%, to €24.1 million for the three months ended December 31, 2024[148] - Selling and distribution expenses increased by €14.7 million, or 14%, to €118.2 million, while as a percentage of revenue, these expenses decreased to 32.7% from 34.2%[160] - General and administrative expenses decreased by €10.3 million, or 30%, to €24.1 million, primarily due to non-recurring IPO-related costs incurred in the previous year[161] Cash Flow and Financing - Cash flows used in operating activities improved to €11.6 million from €45.4 million a year ago[107] - Cash flows used in operating activities for Q4 2024 were €11.6 million, a decrease of 74.5% from €45.4 million in Q4 2023, driven by a net profit of €20.1 million and cash outflows from working capital of €67.7 million[182][183] - Cash flows used in investing activities increased to €15.0 million in Q4 2024 from €8.6 million in Q4 2023, primarily due to a decrease in government grant receipts by €6.9 million[184] - Cash flows used in financing activities decreased significantly to €33.0 million in Q4 2024 from €119.8 million in Q4 2023, mainly due to lower loan repayments of €522.4 million and reduced cash interest paid of €16.2 million[185] - Total loans and borrowings as of December 31, 2024, amounted to €1,202.7 million, reflecting an increase from €1,194.6 million as of September 30, 2024[188][189] Market and Operational Risks - The company is exposed to market risks, particularly foreign exchange and interest rate risks, which could impact financial performance[191] - The company faces intense competition and must adapt to changing consumer preferences to maintain market share[198] - Future growth strategies include expanding direct-to-consumer (DTC) channels and enhancing e-commerce platforms[198] - The company faces risks related to regulations governing the use and processing of personal data, as well as potential disruptions and security breaches affecting IT systems[201] - Economic conditions impacting consumer spending, such as inflation, pose significant risks to the company's performance[201] - Currency exchange rate fluctuations are a concern for the company's financial stability[201] - The company is exposed to risks related to litigation, compliance, and regulatory matters[201] - Corporate responsibility and ESG-related risks and costs are factors that the company must manage[201] - The company faces risks associated with its level of indebtedness and the ability to repay its debt[201] - Material weaknesses identified in the company's internal control over financial reporting need to be remediated[201] - The company operates as a foreign private issuer and a "controlled company," which presents unique risks under NYSE rules[201] - Inadequate insurance coverage or increased insurance costs could impact the company's financial health[201] - Tax-related risks are also a consideration for the company's overall risk profile[201]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers a wide range of sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive has a presence in key finance and investing hubs with bureaus and studios located in major cities such as London, New York, and Sydney [2] Group 2 - The company emphasizes the use of technology to enhance workflows and improve content production [4] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - Ivica Krolo has been appointed as the new Chief Financial Officer (CFO) of the Birkenstock Group, indicating a strategic move to enhance the company's financial leadership and operational efficiency [1] Group 1: Appointment Details - Ivica Krolo brings over 20 years of experience in finance and management, having held senior positions in various international companies [1] - The appointment is part of Birkenstock's ongoing efforts to strengthen its executive team as it prepares for future growth [1] Group 2: Company Strategy - The Birkenstock Group aims to leverage Krolo's expertise to navigate the complexities of the financial landscape and drive sustainable growth [1] - The company is focused on expanding its market presence and enhancing its brand value in the global footwear industry [1]