Birkenstock Holding PLC Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Matthew Boss - JPMorgan Chase & Co - Analyst : Congrats on another nice quarter. So Oliver, could you speak to current demand trends and visibility today to the acceleration that you've embedded back to high teens constant currency in the fourth quarter? And on the bottom line, excluding foreign exchange, maybe if you could just provide some perspective on the more than 61% gross margin and 35% EBITDA this quarter or just sustainability of this pace of improvement?

Question: Dana Telsey - Telsey Advisory Group LLC - Analyst : And nice to see the progress. Since implementing the price increases on July 1, can you expand on what the market response has been? What are you seeing in demand given the back-to-school season we're in, maybe the Nordstrom anniversary sale in the Americas? We would love an update.

Question: Anna Andreeva - Piper Sandler - Analyst : Congrats, nice to see ongoing momentum. We wanted to ask regarding the tariffs. With the EU tariff now at 15% compared to 10% before August 7, do you see any incremental impact on revenue and on margin? And then as a follow-up on DTC versus B2B, a historical seasonality of the business is such that DTC is a little slower in 3Q, but then accelerates in the fourth quarter. Should we expect a similar dynamic this 4Q? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 12:00PM, BIRK.N - Q3 2025 Birkenstock Holding PLC Earnings Call

Question: Laurent Vasilescu - Exane Bnp Paribas - Analyst : Can I ask about EMEA growth? It was a bit lower than the mid-teens expectation. Are there any reasons why there were one-time factors for 3Q? And should we expect a low-teens growth rate for this region as an algorithm going forward? And then, I have a quick follow-up on gross margin.

Question: Laurent Vasilescu - Exane Bnp Paribas - Analyst : Very helpful, Nico. And then Ivica/Megan, with regards to the 4Q gross margin, I know there was a lot of noise last year relative on a year-over-year basis. I think GMs were down like 600 basis points. But should we assume that 4Q gross margins were up like 200 basis points? And then last call, during the Q&A, I think there was commentary that gross margin should be up for next fiscal year. Is that still the case, the way to think about it, despite FX and incremental tariffs?

Question: Randal J. Konik - Jefferies LLC - Analyst : Just on the B2B versus DTC, just so we have a thought process for -- into next fiscal year, would you want us to kind of think about B2B leading from a growth rate perspective over DTC or any kind of thought process change to that, just so we know? And then you talked about some good significant improvement in penetration in closed-toe, obviously, Boston, et cetera. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 12:00PM, BIRK.N - Q3 2025 Birkenstock Holding PLC Earnings Call Can you give us some perspective just around that out a little bit more beyond the Boston, other kind of wins you're getting in closed-toe, would be super helpful?

Question: Jay Sole - UBS AG - Analyst : Oliver, I want to ask about the durability of the ASP gains that you've seen because -- with FX and tariffs and price increases because of the tariffs, there's a lot of noise around ASP, but it's been a good trend for a long time. How much further into the future can you see good ASP gains for Birkenstock, and why?

Question: Adrien Duverger - Goldman Sachs Group Inc - Analyst : So could you please comment on the factory expansion plans and how they are progressing versus your expectations? And how would you expect the additional supply to evolve over the next few years, particularly given the context you've given today, where supply seems to be the main constraint in the business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 12:00PM, BIRK.N - Q3 2025 Birkenstock Holding PLC Earnings Call

Question: Adrien Duverger - Goldman Sachs Group Inc - Analyst : If I can just maybe follow up on the wholesale channel, could you please comment on the confidence across the wholesale partners? And how you would compare this to like six months ago, for example?

Question: Sam Poser - Williams Trading LLC - Analyst : I've got, I guess, 2.5, so I'll ask them. You mentioned the -- can you give us a breakout of what the -- in the US, what store comps of the comp stores were versus -- as compared to the total? And I guess probably about six or seven of your stores are comp. That's number one. Number two, can you give us specifically -- I know you said it. But can you give us specifically what the reported revenue you're looking at for the full year is based on today -- based on the -- what that reflects on an FX-neutral basis? And three, the tariffs on your product, you were at 11%. It went to 15%. So there's only that 4% variance. You're not -- it's not a stack number. That's correct. So actually, it came down from 21% or so to 15% since you last guided, if I understand it correctly. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 12:00PM, BIRK.N - Q3 2025 Birkenstock Holding PLC Earnings Call

Question: Sam Poser - Williams Trading LLC - Analyst : But a few months ago, your blended rate with the additional tariffs were stacked, so it would have stacked on top of that blended 11%, an additional 10%. Now, it's just 15%, which would help you, which is less than what you thought it was going to be three months ago. Is that fair?

Question: Edouard Aubin - Morgan Stanley - Analyst : Yes, Ivica, so first one is a clarification, sorry, because I couldn't really hear what you said on the DTC in Q4. Did you imply that DTC would reaccelerate from the plus 12% you printed in Q3 to a mid-teen rate or not, just to make sure I understood it correctly? Number one. And the second one is also a clarification, is that, am I right to assume that most of the goods that you're selling in fiscal '25 in the US have already been shipped prior to kind of liberation day. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 12:00PM, BIRK.N - Q3 2025 Birkenstock Holding PLC Earnings Call And therefore, you have very limited? If no tariff impact, then that it will come in '26. If you could clarify that, that would be helpful.

Question: Edouard Aubin - Morgan Stanley - Analyst : So -- but just to follow up on my question, so again, that would imply that you had little impact in fiscal '25, right? Is that fair to say?

Question: Mark Altschwager - Robert W. Baird & Co Inc - Analyst : I guess just first thinking about the DTC business, where perhaps you have some more granular customer data, curious what you're seeing in terms of sort of new customer growth versus spend per customer or frequency per customer? Obviously, closed-toe penetration growth continues to be a theme here. Just wondering to what extent that sandals buyers that are also buying closed-toe styles versus the closed-toe bringing a new customer into the brand, which is maybe how those trends may be evolving? And then, I had one quick guidance follow-up as well.

Question: Mark Altschwager - Robert W. Baird & Co Inc - Analyst : Excellent. And then just on the margin guidance, reiterating the full year, but that does imply a fairly wide range of outcomes for the fiscal fourth quarter, including EBITDA margin being down year-over-year. Just wondering if you could comment on that. I mean, is there a scenario where you see EBITDA margin could be down? Or just what are the factors that you see driving kind of the low end versus the high end of that guidance range?

Question: Paul Lejuez - Citibank Cameroon SA - Analyst : You gave some color on DTC business within EMEA. I think, slower start, and then, it accelerated. Can you give some color about what you saw in the other regions within the DTC business throughout the quarter, whether or not you saw an acceleration or deceleration? And then separate -- I'm sorry if I missed this, but can you talk about what your sell-throughs look like within B2B? And how that compares to what you're seeing in DTC in each region?

Question: Paul Lejuez - Citibank Cameroon SA - Analyst : And were those comments related to EMEA? Or did you see that acceleration in all markets in June?

Question: Luca Solca - Sanford C Bernstein & Co LLC - Analyst : Yes. Maybe a different question, trying to parse out what you've been doing and what you're planning to do in order to maintain or increase brand momentum. And how you are planning to support brand equity in terms of marketing initiatives, collaborations, communication, social media events, activations, anything that if planned on the marketing side would be very useful?