Financial Data and Key Metrics Changes - Revenue for the quarter was $18.7 billion, reflecting a 5% growth in local currency and a 6% increase in U.S. dollars, at the top of the guided range [17][19] - Adjusted operating margin expanded by 30 basis points year over year to 17% [18][22] - Adjusted EPS grew by 10% year over year to $3.94 [18][22] - Free cash flow for the quarter was $1.5 billion, with a cash balance of $9.6 billion [23] Business Line Data and Key Metrics Changes - New bookings totaled $20.9 billion, representing a 12% growth in U.S. dollars and a 10% growth in local currency [18][19] - Consulting revenues were $9.4 billion, growing 4% in U.S. dollars and 3% in local currency [19] - Managed services revenues reached $9.3 billion, with an 8% increase in U.S. dollars and 7% in local currency [19] Market Data and Key Metrics Changes - In the Americas, revenue grew 4% in local currency, with a 6% growth excluding federal business impacts [20] - EMEA saw a 4% growth in local currency, driven by banking and capital markets [20] - Asia-Pacific revenue grew 9% in local currency, led by banking and capital markets [21] Company Strategy and Development Direction - The company focuses on being a reinvention partner for clients, emphasizing large-scale transformational programs [25] - Advanced AI is increasingly embedded in solutions, with a significant focus on data management and modernization [26][36] - The partnership strategy is crucial, with 60% of revenue coming from top ecosystem partners, which is expected to continue driving growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are prioritizing strategic transformational programs despite a lack of change in discretionary spending [72] - The demand for advanced AI is growing, with expectations for significant market expansion in the coming years [34] - The company anticipates revenue growth of 2-5% in local currency for fiscal 2026, with a focus on maintaining strong cash returns to shareholders [39][40] Other Important Information - The company recorded $308 million in business optimization costs, impacting operating margin and EPS [21] - The company plans to invest approximately $3 billion in acquisitions for fiscal 2026 [39] Q&A Session Questions and Answers Question: Shift in consulting industry's role in AI - Management acknowledged a shift in perception, emphasizing that enterprise AI adoption requires foundational work around data and processes [43][44] Question: Timing for AI partnerships to impact revenue - Management indicated that the impact of AI partnerships on revenue is tied to enterprise adoption, which is expected to evolve over time [51][52] Question: Sustainability of revenue growth outpacing headcount growth - Management confirmed that revenue per person grew 7%, driven by talent rotation, and expects this trend to moderate [56][57] Question: Discretionary spending outlook - Management stated that they are not waiting for discretionary spending to return, focusing instead on delivering results through large transformational deals [72] Question: Fixed-price work growth potential - Management expressed confidence in the competitive advantage of fixed-price deals, noting that they provide clients with certainty in outcomes [74][75]

Financial Data and Key Metrics Changes - Retail transaction volume reached 14,020 units, representing a 134% year-over-year increase and a 35% quarter-over-quarter increase [4][14] - Retail revenue for the quarter totaled CNY 820 million, up 84% year-over-year and 35% quarter-over-quarter [15] - Gross margin for the quarter was 7.5%, up 0.5 percentage points year-over-year and up 2.3 percentage points quarter-over-quarter, marking the highest level in three years [18] - Adjusted EBITDA loss narrowed significantly to CNY 5.3 million, representing a 43% reduction year-over-year and a 68% reduction quarter-over-quarter [19] Business Line Data and Key Metrics Changes - Wholesale transaction volume was 1,884 units, representing an 81% increase year-over-year and a 54% increase quarter-over-quarter [17] - Total revenue combining both retail and wholesale reached CNY 879 million, representing a 77% increase year-over-year and a 34% increase quarter-over-quarter [17] Market Data and Key Metrics Changes - The Wuhan superstore, which opened in February, is expected to reach nearly 1,800 retail units in December, with local market share approaching 10% [5] - The Zhengzhou superstore, opened in late September, is expected to achieve approximately 900 retail units in December, with market share nearing 5% [5] Company Strategy and Development Direction - The company is expanding its superstore network, having completed all three new superstore openings planned for 2025, and plans to open four to six additional superstores in 2026 [8] - The company aims to scale its business model nationwide, driven by precise pricing, higher customer satisfaction, and superior operating efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained and rapid growth, expecting retail transaction volume to exceed 18,500 units in Q4 2025, representing year-over-year growth of over 110% [11][20] - For the full year 2025, retail transaction volume is expected to surpass 50,000 units, reflecting year-over-year growth of over 130% [11][20] Other Important Information - The company has established strategic partnerships with local governments in Tianjin, Guangzhou, and Yinchuan to jointly invest in and operate new used car superstores [8] Q&A Session Summary Question: How does management view the sustainability of the current margin level? - Management indicated that the gross margin of 7.5% is supported by stabilized new car pricing and improved profitability at the Wuhan superstore, with expectations for further margin expansion [22][23][25] Question: What key initiatives drove the outperformance of the Zhengzhou superstore? - Management attributed the outperformance to lessons learned from the Wuhan superstore, improved pricing capabilities, and efficient operations, expecting break-even in about nine months [28][29][30] Question: What are the key similarities and differences between Uxin and Carvana? - Management highlighted that Uxin operates through both offline superstores and an online marketplace, while Carvana primarily sells online, reflecting different market realities [33][34] - Both companies share similarities in operating under an own inventory model and focusing on precise pricing to ensure efficient vehicle turnover [35][36][37]

Financial Data and Key Metrics Changes - Retail transaction volume reached 14,020 units, representing a 134% year-over-year increase and a 35% quarter-over-quarter increase, marking the sixth consecutive quarter of growth above 130% [4][13] - Retail revenue for the quarter totaled RMB 820 million, up 84% year-over-year and 35% quarter-over-quarter [14] - Gross margin improved to 7.5%, the highest level in the past three years, up 0.5 percentage points year-over-year and 2.3 percentage points quarter-over-quarter [16] - Adjusted EBITDA loss narrowed significantly to RMB 5.3 million, a 43% reduction year-over-year and a 68% reduction quarter-over-quarter [17] Business Line Data and Key Metrics Changes - Wholesale transaction volume was 1,884 units, representing an 81% year-over-year increase and a 54% quarter-over-quarter increase [15] - Total revenue combining retail and wholesale reached RMB 879 million, representing a 77% increase year-over-year and a 34% increase quarter-over-quarter [15] Market Data and Key Metrics Changes - The Wuhan superstore, which opened in February, is expected to reach nearly 1,800 retail units in December, with local market share approaching 10% [5] - The Zhengzhou superstore, opened in late September, is expected to achieve approximately 900 retail units in December, with market share nearing 5% [5] Company Strategy and Development Direction - The company is expanding its superstore network, having opened three new superstores in 2025, and plans to open four to six additional superstores in 2026 [7] - The company aims to scale its business model nationwide through improved pricing accuracy, customer satisfaction, and operational efficiency [8][9] - The long-term target gross margin is around 10%, with existing superstores already approaching this target [25] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained and rapid growth, expecting retail transaction volume to exceed 18,500 units in Q4 2025, representing over 110% year-over-year growth [10][18] - The company believes that stable market conditions will support continued growth, with expectations for total revenue to exceed RMB 1.15 billion in Q4 2025 [18] Other Important Information - The company has established strategic partnerships with local governments in Tianjin, Guangzhou, and Yinchuan to jointly invest in new used car superstores [7] Q&A Session Summary Question: Sustainability of the current gross margin level - Management indicated that the gross margin of 7.5% is supported by stabilized new car pricing and improved profitability at the Wuhan superstore, with expectations for further margin expansion due to reduced competition and improved pricing capabilities [21][22][23][25] Question: Performance of the Zhengzhou superstore compared to Wuhan - Management noted that the Zhengzhou superstore has achieved higher sales and profitability in a shorter time frame due to lessons learned from the Wuhan superstore and improved pricing capabilities [28][30][31] Question: Comparison with Carvana's model - Management highlighted differences in sales channels, with Uxin operating through both offline superstores and an online marketplace, while also noting similarities in inventory management and focus on customer satisfaction [32][33][34][36]

Financial Data and Key Metrics Changes - The company reported full-year revenue growth of 18% in constant currency, reaching EUR 2.1 billion, exceeding the initial guidance of 15%-17% [8][15] - Gross margin increased by 30 basis points to 59.1%, while adjusted EBITDA margin rose by 100 basis points to 31.8% [9][18] - Adjusted net profit for the fourth quarter was EUR 94 million, up 71% year over year, with adjusted EPS of EUR 1.85 for the full year, up 45% from fiscal 2024 [18][19] Business Line Data and Key Metrics Changes - The Americas segment grew by 18% in constant currency, EMEA by 14%, and APAC by 34% [15][16] - B2B channel revenue increased by 21%, while D2C grew by 12% in constant currency [16] - Closed-toe share of revenue increased by 500 basis points year over year to 38% [11] Market Data and Key Metrics Changes - The company sold over 38 million pairs in fiscal 2025, up over 12%, with an average selling price (ASP) increase of 5% in constant currency [9][10] - The APAC segment now accounts for 11% of global revenue, with the highest ASP [11] Company Strategy and Development Direction - The company plans to open about 40 new stores in 2026, aiming for a total of 150 stores ahead of schedule [10][24] - Focus on maintaining brand scarcity and managing distribution tightly to support full-price realization, which remains over 90% [10][12] - The company is investing in production capacity and innovation to meet growing demand, particularly in the APAC market [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite challenges from FX and tariffs, expecting a slower revenue growth of 13%-15% in fiscal 2026 [20][22] - The company highlighted strong demand across all segments, particularly from younger consumers in the B2B channel [30][49] - Management noted that production capacity constraints are the primary limitation to growth, not demand [31][60] Other Important Information - The company repurchased shares totaling EUR 176 million and reduced net leverage from 1.8x to 1.5x [19][20] - Capital expenditures for fiscal 2026 are expected to be between EUR 110 million and EUR 130 million [24] Q&A Session Summary Question: What is driving the more conservative view for 2026? - Management indicated that while demand remains strong, production capacity constraints are the main limitation to growth [30] Question: Can you elaborate on the margin outlook for 2026? - Management explained that FX and tariffs will significantly impact margins, with a total drag of about 200 basis points expected [39][40] Question: How do you see channel growth in 2026? - Management expects B2B to continue outpacing D2C growth, driven by strong demand from younger demographics [49] Question: What are the expectations for consumer demand in the EU? - Management reported strong growth in EMEA, particularly in closed-toe products, and expects continued positive trends in Q1 [57][58] Question: How will the new stores be located and what is the strategy for DTC? - The company plans to open stores in key cities and aims to enhance the DTC channel through targeted membership benefits and loyalty programs [78][80]

Financial Data and Key Metrics Changes - Revenue for the first quarter reached $18.7 billion, growing 5% in local currency, with adjusted EPS growth of 10% compared to the same quarter last year [6][17][20] - Adjusted operating margin expanded by 30 basis points year over year, reaching 17% [7][17] - Free cash flow for the quarter was $1.5 billion, with a cash balance of $9.6 billion at the end of the quarter [21][22] Business Line Data and Key Metrics Changes - New bookings totaled $20.9 billion, representing 12% growth in U.S. dollars and 10% growth in local currency [16][17] - Consulting revenues were $9.4 billion, growing 4% in U.S. dollars and 3% in local currency, while managed services revenues were $9.3 billion, growing 8% in U.S. dollars and 7% in local currency [18] - Advanced AI bookings reached $2.2 billion, nearly doubling from the previous year, with revenue of approximately $1.1 billion [9][10] Market Data and Key Metrics Changes - Revenue growth in the Americas was 4% in local currency, with a 6% growth excluding federal business impacts [18][19] - EMEA saw 4% growth in local currency, driven by banking and capital markets, while Asia-Pacific experienced 9% growth, led by Japan and Australia [19] - The demand for reinvention remains strong, with 60% of revenue in Q1 coming from work with top 10 ecosystem partners [11][12] Company Strategy and Development Direction - The company aims to be the most client-focused, AI-enabled workplace, emphasizing the importance of partnerships and strategic acquisitions to enhance capabilities [5][14] - Recent acquisitions include a 65% stake in DLB Associates, expanding capabilities in the AI data center engineering market [14] - The focus is on embedding advanced AI across various solutions, moving beyond standalone projects to integrated end-to-end solutions [10][34] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are prioritizing large-scale transformational programs, with no significant changes in discretionary spending observed [24][66] - The company expects revenue growth for fiscal 2026 to be in the range of 2-5% in local currency, with an inorganic contribution of about 1.5% from acquisitions [37][39] - The outlook for adjusted diluted earnings per share for fiscal 2026 is projected to be between $13.52 and $13.90, reflecting 5-8% growth over the previous fiscal year [38][39] Other Important Information - The company recorded $308 million in business optimization costs related to employee severance, impacting operating margin and EPS [20] - The company continues to invest significantly in talent and technology, with nearly 80,000 AI and data professionals targeted [7][8] Q&A Session Summary Question: Shift in consulting industry's role in AI - Management acknowledged a shift in perception, emphasizing that enterprise AI adoption requires foundational work around data and processes [42][44] Question: Revenue impact of AI partnerships - Management indicated that partnerships are crucial for enterprise adoption and will contribute to revenue as the market evolves [50][51] Question: Sustainability of revenue per head growth - Management confirmed a 7% growth in revenue per person, driven by talent rotation, but expects moderation as new hires are integrated [52][54] Question: Discretionary spending outlook - Management stated that they are not waiting for discretionary spending to return, focusing instead on delivering results despite current market conditions [65][66] Question: Fixed-price work growth potential - Management expressed confidence in the competitive advantage of fixed-price contracts, which have increased significantly, and noted ongoing evolution in commercial models [67][68]

Financial Data and Key Metrics Changes - Retail transaction volume reached 14,020 units, representing a 134% year-over-year increase and a 35% quarter-over-quarter increase [5][16] - Retail revenue for the quarter totaled CNY 820 million, up 84% year-over-year and 35% quarter-over-quarter [17] - Gross margin for the quarter was 7.5%, marking the highest level in the past three years, up from 7% a year ago and 5.2% in the prior quarter [19][22] - Adjusted EBITDA loss narrowed significantly to CNY 5.3 million, a 43% reduction year-over-year and a 68% reduction quarter-over-quarter [21] Business Line Data and Key Metrics Changes - Wholesale transaction volume was 1,884 units, representing an 81% increase year-over-year and a 54% increase quarter-over-quarter [18] - Total revenue combining retail and wholesale reached CNY 879 million, representing a 77% increase year-over-year and a 34% increase quarter-over-quarter [18] Market Data and Key Metrics Changes - The Wuhan superstore, which opened in February, is expected to reach nearly 1,800 retail units in December, with local market share approaching 10% [6] - The Zhengzhou superstore, opened in late September, is expected to achieve approximately 900 retail units in December, with market share nearing 5% [6] Company Strategy and Development Direction - The company is expanding its superstore network, having opened three new superstores in 2025, and plans to open four to six additional superstores in 2026 [9][10] - The company aims for a gross margin target of around 10% in the long term, with existing superstores already approaching this target [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained and rapid growth, expecting retail transaction volume to exceed 18,500 units in Q4 2025, representing year-over-year growth of over 110% [12][22] - The company believes that vehicle prices will remain stable or trend upward, supporting margin improvements [28] Other Important Information - The company's Net Promoter Score (NPS) was 67, maintaining an industry-leading level for six consecutive quarters [5] - Strategic partnerships with local governments in Tianjin, Guangzhou, and Yinchuan have been announced to jointly invest in and operate new used car superstores [9] Q&A Session Summary Question: Sustainability of current margin level - Management indicated that the gross margin of 7.5% is supported by stabilized new car pricing and improved profitability at the Wuhan superstore, with expectations for further margin expansion [25][26][28] Question: Performance of Zhengzhou superstore - Management noted that the Zhengzhou superstore's sales and profitability are outperforming the Wuhan superstore due to lessons learned and improved pricing capabilities [34][36] Question: Comparison with Carvana - Management highlighted differences in sales channels, with Uxin operating through both offline superstores and an online marketplace, while sharing similarities in inventory management and customer satisfaction focus [38][42][45]

Birkenstock (NYSE:BIRK) Q4 2025 Earnings Call December 18, 2025 08:00 AM ET Speaker0Good morning, and thank you for standing by. Welcome to the Birkenstock Quarter and Fiscal 2025 earnings conference call. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. The compan ...

Financial Data and Key Metrics Changes - The company achieved a 20% bit shipment growth in fiscal 2026, driven by efficiencies in existing fabs and node transitions [6][21] - Gross margin reached 68%, with expectations for gradual increases in the future due to strong demand and supply constraints [24][25][27] - Free cash flow margin was near 30% in the first quarter, with record-setting free cash flow reported [51][70] Business Line Data and Key Metrics Changes - DRAM pricing increased by 20% sequentially, while NAND pricing also saw significant growth [12][21] - The attach rate for high-capacity SSDs in AI servers is growing, with Micron leading in QLC workloads [18][19] Market Data and Key Metrics Changes - There is a substantial mismatch between supply and demand across all segments, including DRAM and NAND, with the data center segment seeing particularly high demand [13][14][30] - The company is experiencing challenges in meeting customer demand due to industry-wide supply constraints [13][57] Company Strategy and Development Direction - The company is focusing on diversifying its business across segments while prioritizing strategic customers [14][15] - Future growth is expected to tilt more towards the data center market, with ongoing investments in technology and capacity [15][56] Management's Comments on Operating Environment and Future Outlook - Management highlighted a generational change in technology driven by AI, which is expected to sustain demand for memory products [25][26] - The company is committed to maintaining technology leadership and ensuring adequate supply to meet customer needs [70][71] Other Important Information - The company plans to double construction CapEx from fiscal 2025 to 2026, indicating a strong commitment to expanding capacity [46][75] - The company has paid down $2.7 billion of debt in the first quarter and has returned to a net cash position [51][70] Q&A Session Summary Question: How has the company factored in bit shipments between NAND and Flash? - The company is working to increase bit supply and expects modest growth in bit shipments sequentially [6][7] Question: How does the company decide to allocate capacity between conventional DRAM and HBM? - The company is facing a significant demand-supply mismatch and is working to ensure adequate supply for all segments [13][14] Question: What is the outlook for gross margins moving forward? - Management indicated that gross margins could continue to rise due to strong demand and supply constraints [24][25][27] Question: How does the company manage wafer allocation between different product types? - The company can change wafer allocation within one process cycle time, but design stability is crucial for complex products like HBM [39][41] Question: What are the priorities for cash generation moving forward? - The company prioritizes reinvestment in the business, maintaining technology leadership, and strengthening the balance sheet [70][71]

Financial Data and Key Metrics Changes - The company reported a 20% bit shipment growth in fiscal 2026, driven by efficiencies in existing fabs and node transitions [7][8] - Gross margin reached 68%, with expectations for gradual increases in the future due to strong demand and operational efficiencies [25][28] - Free cash flow margin was near 30% in the first quarter, with plans to increase free cash flow throughout the year [52][70] Business Line Data and Key Metrics Changes - DRAM pricing increased by 20% sequentially, while NAND pricing also saw significant growth [13][22] - The attach rate for high-capacity SSDs in AI servers is growing, with Micron leading in QLC workloads [19][20] - SSD business exceeded $1 billion in the first quarter of 2026, with expectations for accelerated growth as supply chain issues are resolved [22] Market Data and Key Metrics Changes - Demand for both DRAM and NAND is substantially higher than supply, affecting all segments [14][15] - The company is experiencing a mismatch between supply and demand across all market segments, particularly in data centers [15][16] Company Strategy and Development Direction - The company is focusing on diversifying its business across segments while prioritizing strategic customers [15][16] - There is a shift towards data center products, with an emphasis on higher ROI segments [56] - The company plans to double construction CapEx from fiscal 2025 to 2026, indicating a strong commitment to expanding capacity [47][76] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment is expected to remain strong, with significant unmet demand across all segments [30][31] - The company is confident in its ability to sustain or expand margins due to favorable market conditions and operational efficiencies [28][70] Other Important Information - The company paid down $2.7 billion of debt in the first quarter and returned to a net cash position [52][70] - CapEx as a percentage of sales is expected to be in the mid-20s for the second quarter, down from below 35% in the first quarter [51] Q&A Session Summary Question: Bit shipments of DRAM and guidance for NAND and Flash - The company achieved a slight increase in bit shipments of DRAM and expects more growth in the second quarter, primarily driven by price [6][8] Question: DRAM pricing and capacity allocation - The company is unable to meet the demand for both conventional DRAM and HBM due to supply constraints, with a focus on strategic customer relationships [14][15] Question: Future gross margin expectations - Management indicated that gross margins could increase gradually, supported by strong demand and operational efficiencies [25][28] Question: HBM production and flexibility - The company is sold out for HBM, with significant unmet demand, and any increases in supply will not significantly impact overall demand [30][31] Question: CapEx breakdown and trends - The company plans to increase construction CapEx significantly, with a focus on expanding capacity in various locations [47][76] Question: Allocation decisions across markets - The company faces challenges in balancing allocation across different markets, ensuring support for strategic customers while optimizing for gross margin [66][68]

Financial Data and Key Metrics Changes - The company reported a 20% growth in bit shipments for fiscal 2026, driven by efficiencies in existing fabs and node transitions [6][20] - Gross margin reached 68%, with expectations for gradual increases in the future due to strong demand and supply constraints [23][24] Business Line Data and Key Metrics Changes - DRAM pricing increased by 20% sequentially, while NAND pricing also saw significant growth [12][24] - The attach rate for high-capacity SSDs in AI servers is growing, with the company leading in QLC workloads [17][20] Market Data and Key Metrics Changes - Demand for both DRAM and NAND is substantially higher than supply, creating challenges in meeting customer needs across all segments [13][14] - The company is experiencing a significant mismatch between supply and demand, particularly in the data center market [14][30] Company Strategy and Development Direction - The company is focusing on diversifying its business across segments while prioritizing strategic customers for long-term deals [14][15] - Future growth is expected to tilt more towards the data center segment, with ongoing investments in technology and capacity [15][50] Management Comments on Operating Environment and Future Outlook - Management highlighted the ongoing structural supply constraints and the positive long-term demand driven by AI technology [24][25] - The company is optimistic about sustaining or expanding margins due to strong market conditions and effective cost management [25][26] Other Important Information - The company plans to double construction CapEx from fiscal 2025 to 2026, indicating a strong commitment to expanding capacity [41][45] - Free cash flow margin was near 30% in the first quarter, with plans to continue paying down debt and potentially increasing dividends [46][62] Q&A Session Summary Question: DRAM and NAND bit shipments growth - The company confirmed a slight sequential increase in DRAM bit shipments and expects more growth in the second quarter, primarily driven by pricing [5][7] Question: DRAM pricing and capacity allocation - Management noted that the aggregate demand for DRAM and NAND is significantly higher than supply, complicating capacity allocation decisions [12][13] Question: Future gross margin expectations - Management indicated that while gross margins are at record levels, they expect gradual increases moving forward, influenced by strong demand and supply constraints [23][24][26] Question: HBM production and flexibility - The company stated that it is sold out for HBM based on current agreements, with significant unmet demand remaining [29][30] Question: CapEx breakdown and trends - Management did not provide specific breakdowns for 2027 but indicated that total CapEx will increase compared to 2026, with a focus on construction and equipment [40][41] Question: Allocation decisions for different markets - The company emphasized the difficulty in balancing allocation across various markets, ensuring support for strategic customers while optimizing for gross margin [57][59] Question: Cash generation priorities - The company plans to prioritize reinvestment in the business, maintaining technology leadership, and managing the balance sheet effectively [60][62]