Birkenstock (NYSE: BIRK ) has announced a record-breaking revenue for its second quarter of fiscal 2024, with a notable 23% year-over-year increase. The company has raised its full-year revenue growth expectations to 20% on a constant-currency basis, up from the previously anticipated 17% to 18%. Direct-to-Consumer (DTC) sales and digital business were significant contributors to this growth, with increases of 32% and 29% respectively.
Despite this success, Birkenstock's gross profit margin experienced a decline due to capacity expansion and inflation-related labor costs. Nonetheless, the company achieved its strongest adjusted EBITDA at EUR162 million and reported a robust adjusted net profit of EUR77 million. Key Takeaways Birkenstock reports record Q2 revenue, up 23% from the previous year, with total revenue of EUR481 million.
Full-year revenue growth forecast increased to 20% on a constant-currency basis. DTC channel and digital business saw significant growth, contributing to the revenue increase. Gross profit margin declined by 320 basis points due to capacity expansion and one-time costs.
Adjusted EBITDA reached a company high of EUR162 million. The company opened five new retail stores, contributing to a total of 19, with strong B2B sales. Demand for closed-toe footwear, particularly clogs, more than doubled.
Company Outlook Birkenstock raises fiscal 2024 revenue forecast to EUR1.77 billion to EUR1.78 billion.
Anticipates adjusted EBITDA margin of 30% to 30.5% and EU.
