Birkenstock - comment

Q1 was a strong quarter, but management maintained guidance for FY2025 due to macroeconomic uncertainty (including tariffs). We expect little change in the SUNs based on these numbers. We will tweak our model over the next few days to reflect the new geographical reporting segments. 

The Q1 FY25 results were ahead of our expectations. Revenue was €30m higher at €362m, whilst EBITDA was €23m higher at €102m. Q1 is the smallest quarter, and management has not changed its full-year guidance. The Gross Margin improvement (+70bp to 60.3%) was despite a higher weight of B2B sales with a lower gross margin than DTC sales. DTC sales have a higher gross margin but also higher SG&A costs. Birkenstock expects the growth to balance out over the remaining three quarters. Revenue growth estimates were maintained at +15% - +17%, with one-third coming from ASP and two-thirds from increased unit sales. Management is relaxed about potential tariffs and their impact, and so are we. The higher EBITDA fed through to a better-than-expected OCF.