Birkenstock Holding plc ( BIRK ) shares are trading lower after the company reported the fourth-quarter fiscal 2024 results.

Revenue grew 22% year over year on a reported and constant currency basis to 456 million euros. Adjusted EPS stood at 0.29 euro, up 107% Y/Y, in the quarter. In USD, revenue of $500.93 million beat the street view of $439.29 million, and adjusted EPS of $0.32 exceeded the consensus of $0.26.

The company witnessed double-digit revenue growth across all segments, including 21% in the Americas, 19% in Europe, and 38% in APMA on a constant currency basis.

DTC and B2B revenue grew 18% and 26%, respectively, on a constant currency basis in the quarter.

Gross margin declined 640 basis points to 59.0% due to the under-absorption from added production capacity, higher B2B share, and currency translation impacts along with tough comparison.

Adjusted EBITDA rose 31%to 125 million euros, with an adjusted EBITDA margin of 27.4%, which was up 190 basis points year-over-year.

Operating cash flow rose to 429 million euros from 359 million euros a year ago. As of September 30, 2024, Birkenstock ( BIRK ) had cash and cash equivalents of 356 million euros.

FY25 Outlook: The company sees FY25 revenue growth of 15% – 17% in constant currency, adjusted EBITDA margin of 30.8% – 31.3% (up 50 basis points) and capital expenditures of around 80 million euros.

Oliver Reichert, CEO and Member of the Board of Directors, said, “As we continue to gain the attention of consumers and wholesale partners, we are seeing strong, balanced growth in both our DTC and B2B channels. Both of these channels are highly profitable and allow us to maximize our reach, especially into new targeted consumer groups.”

”As we look into 2025 and beyond, we are confident in our ability to deliver on our medium to long-term objectives for mid-to-high teens revenue growth, gross profit margin of around 60% and Adjusted EBITDA margin of over 30%.”

Change in Reporting Segment: Starting fiscal first-quarter 2025 (ending December 31, 2024), Middle East and Africa (previously under APMA) will merge with Europe to form a new Europe, Middle East, and Africa (EMEA) segment.

India (previously under APMA) will merge with the remaining Asia Pacific countries to create a new Asia Pacific (APAC) segment, while Americas segment will remain unchanged.

Price Action: BIRK shares are up 1.32% at $56.80 premarket at the last check Wednesday.

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