Birkenstock Holding plc Ordinary Shares

Good morning and thank you for standing by. Welcome to Birkenstocks second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. The company has asked that you please limit yourself to one question and return to the queue for any follow-up. The company has allocated 60 minutes in total to this conference call. I would like to remind everyone that this conference call is being recorded. I will now turn over the call to Megan Kulik, Director of Investor Relations.

Hello, and thank you, everyone, for joining us today. On the call are Oliver Reichert, Director of Birkenstock Holding, PLC, and Chief Executive Officer of the Birkenstock Group, and Ivica Krolo, Chief Financial Officer of the Birkenstock Group. David Kahn, President of Americas, Niko Bujov, President of EMEA, and Alexander Hoff, Vice President of Global Finance, will join us for the Q&A. Today, we are reporting the financial results for our fiscal second quarter of 2025, ending March 31st, 2025. You may find the press release and supplemental presentation connected to today's discussion on our investor relations website at birkenstock-holding.com. We would like to remind you that some of the information during this call is forward-looking and accordingly is subject to the safe harbor provision of the federal securities laws. These statements are subject to various risks, uncertainties, and assumptions, which could cause our actual results to differ materially from these statements. These risks, uncertainties, and assumptions are detailed in this morning's press release, as well as in our filings with the SEC, which can be found on our website at birkenstock-holding.com. We undertake no obligation to revise or update any forward-looking statements or information except as required by law. We will reference certain non-IFRS financial information. We use non-IFRS measures as we believe they represent the operational performance and underlying results of our business more accurately. The presentation of this non-IFRS financial information is not intended to be considered by itself or as a substitute for the financial information prepared and presented in accordance with IFRS. Reconciliations of IFRS to non-IFRS measures can be found in this morning's press release and in our SEC filings. With that, I'll turn the call over to Oliver.

Good morning, everybody, and thank you for joining us. We are meeting today at a moment when the world seems unpredictable. The current context is a stress test for the resilience of business models. As our results for the second quarter show, we have passed this test very well. Our company is in a good shape and we are confident about our future. Our performance is rooted in the power of a universal purpose-driven brand that stood the test of time. We control our own supply chain with 95% of our products made in Germany and 100% made in Europe and 96% of our raw materials sourced in Europe. This helps shield our business from the current disruptions. Once again, we're delivering on the promises we made during our IPO. In the second quarter, we delivered a record 574 million euros in revenues. On a reported basis, this was up 19% year over year. In constant currency, revenue grew by 18% above the high end of our 15% to 17% target for the full year. Revenue growth was driven by a double-digit volume increase, supported by continued ASP growth. The manufacturing capacity we have added over the past two years has allowed us to increase our production to meet the increasing demand for Wittgenstock. Sales numbers for our five iconic silhouettes grew double-digit, contributing to both volume and ASP growth. At the same time, we continued to tap into the white spaces, which are, as you know, closed-toe shoes, our own retail stores, and the APEC region, all of which contributed to our strong growth. As expected, growth in the second quarter was balanced between our B2B and D2C channels, with B2B coming in at 18% and D2C at 17%. The D2C growth was driven by our investments in our online and own retail stores. Our membership base reached over 10 million loyal members, up over 25% year over year. We are on track with our retail expansion with now 77 owned stores, adding six new doors during the second quarter. As shared, we are heading towards 100 owned stores by the end of this fiscal year, and we are confident we will get there. During the quarter, revenue from closed-door silhouettes grew at twice the rate of the overall group and increased share of business by 400 basis points. Demand for closed-toe silhouettes for spring-summer 25 was up strong double digits, and we see continued strength as we build our order book for spring-summer 26. Almost half of our top 20 selling silhouettes in the quarter were closed-toe. Let us now have a brief look at the segment performance. Within our largest segment, the Americas, we experienced continued strong consumer demand for our brand. Revenue in the region was up 23% in reported currency and 20% in constant currency. Compared to the second quarter of 24, both the B2B and the DTC channel grew double digit. Within the B2B channel, the fastest growth came from our youth, sporting goods, outdoor and department store partners. America's DTC strengthened in the quarter from investments we made in the digital channel and from our expanded physical retail presence. We opened one new door in Nashville, bringing our own store count in the region to 10. In EMEA, we delivered double-digit growth of 12%. In the recently integrated Middle East-Africa area, we have been taking further actions to be more focused in our growth. DTC remained very strong, outpacing B2B growth by one and a half times. Within our DTC channel, shoes are the second biggest category behind classics leather, showcasing the continued momentum in this important area. We increased our brand presence and awareness with the opening of new stores in London and Paris, bringing our store count in EMEA to 37. we created some strong brand moments, bringing our mission to life across the region. One highlight was an experimental pop-up store in Les Deux Alpes in France, where we hosted over 3,000 brand fans and members in a month. The APEC region was again the fastest growing segment in the quarter. Our largest wide space region grew by 30%, driven by very strong growth in our DTC channels. We opened three new owned retail stores in India, Japan and China, bringing the total number of stores in the region to 30. We also expanded our strategic partnerships, increasing our monobrand partner doors by 20%, driving very strong double-digit growth in our B2B channel. Consistent with the other segments, Closed-toe and higher-priced premium leather executions are growing faster than the regional average and contributing to positive ASP growth in the region. Our three top markets in terms of revenue were Australia, China, and Japan. All grew significantly above segment average, with China more than doubling in revenue year over year. As a reminder, we're just beginning to enter Greater China in a meaningful way and see the opportunity for continued strong growth in this market. The strong results make us confident for our important spring-summer selling season, as we are seeing great momentum across all product channels, categories, and segments. I will now turn it over to Ibiza to discuss our financial results in more detail.