Birkenstock Holding (BIRK) 18 Dec 242024 Q4 Earnings call transcript

Good morning, and thank you for standing by. Welcome to BIRKENSTOCK's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions]. I would like to remind everyone that this conference call is being recorded. I will now turn over the call to Megan Kulick, Director of Investor Relations.

everyone, us you, thank and for today. joining Hello,

of Chief Reichert, BIRKENSTOCK of of President the Baumann Global Holdings the the also Financial us BIRKENSTOCK Niko David call Finance, Americas; and Alexander and of Q&A. Oliver Kahan, of for are Officer Chief Massmann, Officer On Plc; [ ], Director Chief will President EMEA; Officer; and Hoff, Erik Sales Birkenstock the Group. Group; Claus [ ], the of Weake Executive Vice President join

Today, fourth we ending XXXX. are our reporting the financial quarter September results for fiscal year and full XX,

You may the release our on connected and supplemental find today's discussion to birkenstockholdings.com. press Relations website, Investor presentation

forward-looking these provisions statements as well that subject as the like and differ statements. remind you undertake to update assumptions release materially SEC, our from birkenstockholdings.com. and of of would actual is is to cause some safe risks, to securities various subject which are the with to filings on statements information could website laws. morning's These our in provided by which forward-looking except federal at revise assumptions in the this obligation harbor our These any We the are be and as or We press found uncertainties detailed accordingly to during call the information no risks, can required or uncertainties law. results

cited currency all on During unless constant rates stated. be a the call, revenue will growth otherwise basis

be filings. prepared in in SEC itself this the press business The of financial information believe can financial they represent intended and We by and with financial of Reconciliations underlying IFRS performance information. is use we more release morning's presentation to reference as measures the to will and We substitute accurately. also for non-IFRS IFRS. not certain our considered non-IFRS this non-IFRS our or a the of in operational be measures results found presented non-IFRS accordance as information

our it to regarding over fiscal turn our to your want segment attention in I XX-F In of and our change to XXXX. Americas, comprised segments, fiscal to reporting in years reporting Asia the draw two was Europe including segments East, our the in operating AMA, and note release three Before Africa and the in which Pacific and were Middle I Oliver, India. press up XXXX, beginning

new operating Middle have During to ] internal we of merge Boyaca quarter East Africa fiscal Europe, Middle the Niko a leadership and XXXX, changed Africa, East European segment, the organization or and first segment of [ the reporting region with our India. under create to the

India the leadership with continue the to While Americas operational region Baumann new ]. segment, APAC, will the [ operating the were has the benefits and complementary No regions. segment advantages been was between Asia a to create changes of the Claus which merged of The made change operating composition Pacific due to under segment. the

result, the segments: fiscal and a reportable has [indiscernible] operating three As APAC. with EMEA company starting Americas, XXXX,

structure. new will Our XXXX be reported quarter results segment this first under

with X-K over first year-over-year your Prior aid results, year year With the fiscal we to and and to I'll reporting comparison. the quarter segment under turn that, full of Oliver. in a recast issue XXXX the the XXXX our new release quarters it structure will fiscal XXXX to

you Good call. morning, thank today's everybody, joining and for

in came very report a proud are strong XXXX ahead expectations. of to our fiscal We results which

our fiscal professional, closed-toe silhouettes, expanding driven the year XX% constant products by first record across commitments of by annual track revenue demand segments, 'XX, compounded XX% IPO important orthopedics, in currency. Extending October In we growth, opportunities the delivering and our on profitably. our for we growing categories. Under-penetrated the and product white plus decade-long are categories and during such and identify. APMA we made we our retail. delivered profitably as all are space outdoor our revenue region in IPO growth we continued We channels completed into full growing since own

adjusted silhouettes end grew silhouettes at fiscal of increased In from year our our business top In high beating XX to. of Our rate and XXXX half XXXX, close the revenue margin the expectations. XX.X%, to about share about over EBITDA of group was coastal twice of 'XX, overall X/X. selling were

overall business Our of pace the nearly APMA at business. double the grew XX%,

business own retail doors to investments Our launched new professional pace lines, we opening X.X the [indiscernible] blue certified over own our and outdoors store in 'XX. add the Birki as we fully grew to overall the The of footbed Leveraging innovations. factory, we Waterway continue XX and globally revenue Xx for made the our fleet, fiscal sneakers new expanded including our newest segment. orthopedic our our relaunched Air in

additional production demand We global all growing to in also [indiscernible] made investments for us to products. allowing the increase meet capacity our

We in increased by pairs sold fiscal XX% 'XX.

full year driven applications. fiscal XX% totally. realization the more the over price price for allocate partners distribution adding growth and from targeted of XX% grew up increasing came in new business to existing 'XX. shelf to We product space order maintaining XX% and continue wholesale ensure strong size and our by our categories and the BIRKENSTOCK X% Over was doors as While usage of ASP mix to brand, increase. disciplined and by scarcity

share more key increasingly intentional consumers we gaining in and and shoppers. spending, of partners becoming retail are taking selective attention their and the their As our are

grew penetration 'XX. fiscal base with XX% the was last the grew million X of and spend We to than the stores Our pushup XX% our from by year. nonmembers. DXC more during year approximately over average on globally, business ended XX% [indiscernible], membership at with frequently consistent XX more up XX% over year fiscal of We and end

BTC targeted especially continue balance We and new to between goals the our maximize our growing groups. achieve profitability reach. global the and BXB growth into to consumer meet demand,

experienced Revenue the the second the Americas, consumer was for to fiscal segment 'XX. up throughout year. return to the for move We saw in in-person retailers performance compared to our let's discussion demand half largest shopping at XX% we Now of strong brief our region Within a noticeable in brands year. multi-brand segment, year. a of the the

As strategic and the strong throughout very BIRKENSTOCK sell experienced allocated year of as such, back-to-school our our partners many strengthened group. more BXB space

have We strategic retailers. a our mask within brand emerged carry as

and revenue stores significant is We fiscal own. retail believe mid-teens. reach door we with there both We completion stores Europe, In we in what which XX%, with the demand channel, quality We digital, region growth recently distribution and in BXC impressions double-digit exceptional 'XX. additional this which the the full almost expanded later count store we plan achieve is social our in first media transformation unit our Americas growth. during was and several consumer four new broad-based countries our our add presence, the ASP our amplified on beyond our have year. initiatives improved year opening all entirely delivered physical Boston of see the of the channels. In will to delivered clearly growth may the since In first and opened of benefits across

ASP over the grew faster While driving both sandals for closed-toe channels, at than double year. X.Xx Closed-toe grew and higher. at digits

basis space brand points awareness our channels XXXX. We and and BXB our We strategic XXX an and strength partners of transformation began average increased both have in we markets Europe. retail the saw in since in in shelf the key BXC gained

retail these and sell-through alignment led Our partners to increased from performance better accounts. with strategic orders elevated focus key targeted on

Our continue the assortment partners consumer the to meet to demand. expanding widen

In doubled year. order for we in BXB business book 'XX, compared our Autumn/Winter shoes of share to last

in of We retail 'XX. several three years business store Paris. a new pace in as similar region, BXC consolidation our our grew at region, After the BXB. European stores Our expansion on the we including strategy in embarked retail in first opened

'XX. retail APMA segment additional region XX%, throughout in with our pace Europe of 'XX, nearly We the in double additional have The identified stores several fiscal business. locations overall the growing for owned fastest-growing

this penetrating We or continue to the for business space brand. make significant white progress towards

only of and bringing our region, growth opportunity our map to mix, segment. XX% Aligned region. for substantial APMA see and at XX with total to our in road in overall added new commitment XX revenue continue stores, own we retail Still the to invest will the the we

strong Additionally, growth. the strong channel regional supporting online in performance and our of our the the Philippines BXC throughout is launch digital store

strategic our BXB growth by the XX%, in region. drives doors brand partner which our expanded approximately increasing also We mono partnerships

share up China revenue. up of mid-teens Greater made

steadily later now We in still are brand awareness store results retail will successful into permanent our market in are over first demand Chengdu, rollout will building turn to detail. early to I store and our financial turn and Erik through this the our a increased but own in there, October stages and in year. We of our in opened pop-up store more discuss assets. online Shanghai our it

accelerated full achieve and year over pleased and Oliver, share line our coming throughout I'm good into Thanks, in year growth we for year allowing quarter the another XXXX. end, strong saw top our to performance of to XX% growth us expectations. everyone. ahead BIRKENSTOCK's which fiscal fourth Again, morning, of very year

at Fourth was quarter's by BXC BXB accelerating XX% our currency, XX%. up up from This let's third of XX%. EUR constant First, and billion, BXC in revenues. million, growth our XXXX expected . for fiscal BXB full for revenues revenues year. quarter look were of year were XXX EUR over performance The of growth growth XX%, up XX% XX% to brought ahead total up up from our and XXXX X.X XXXX were revenue of and XX%. the XX% was

to analyzing The basis our And In quarter adjustment adjustments margin profit XXX approximately note expenses. increased important noncash that comparable fourth impact by by year true-up EBITDA of reclassification margin year-over-year the end-of-year in points points. the margin, looking to not gross these several XXXX in XXXX. making XXX did QX logistics elevated quarter gross gross Now profit. importantly, quarter. directly the impacted it QX the not was at it's prior Combined, basis period. EBITDA and

year basis, of production the in gross XXX a which all accounts the was for offset by was FX some around the to points. remaining b, profit result a, the basis initiatives. The see of QX quarter under-absorption XXXX gross XXXX impact in capacity, for points new represents normalized margin change. relative XXX share a from last and margin On in gross increase BXB XX%. expected more The reported fiscal pricing fourth margin decline impact, basis

the year For XXXX. basis full was XX.X%, points gross year, XXX from margin full down profit

the a points in consulting expenditures fourth basis XX% under-absorption XXX part those added remaining capacity, other and about XXX the of basis quarter, COGS into of mix lower margin as impacts. our during in was year. the down revenue temporary other to as and expected, representing million expenses distribution channel relative XXX XXX last As points result year-over-year due incurred well Selling the and production combination basis to points from IPO EUR from reclassification of were logistics of the costs decline

XX.X% or million full year, XX.X% revenue, fiscal XXXX. of distribution expenditures the totaled XXX For and year fiscal down selling from EUR in

EUR year-over-year, XXXX, the in General XX of Adjusted public million administration Respectively and up X% XX.X% or million expenses full and XX year-over-year. EUR revenue primarily million up of were costs. XX% basis X.X% was up points QX XXX year or XXX XXX revenue was for the EUR to company basis due in of the incremental margin EBITDA year-over-year of quarter. points

margin increased range but basis our to year, of the coming For adjusted EUR to the expected XXX capacity a points XX% down of XX.X%. XX.X% of largely ahead result million expansion, full of XXX EBITDA EBITDA as year-over-year, for XX% and in an

Fiscal of of increased the up ago. profit EPS XXXX was up XXX% from EPS quarter was year-over-year. profit EUR net Adjusted and adjusted a up EUR million in adjusted was XX% XXXX. net X.XX of XXX from XXX%, EUR XX% $X.XX, fourth million year XX

a XX, as have September look at of sheet balance now closer Let's XXXX. our

up were cash improved from as up year-over-year. capital XXX million equivalents million strong to with EBITDA driven fiscal We inventory cash from 'XX at ratio EUR of EUR EUR XXXX. and of million sales September XXXX, in operating combined and by generated the working Cash XXX We XXX end to was improved our This flow XX%, 'XX. during down the growth, XX% efficiency. XX% XX,

'XX, fiscal line in despite very year at for DSO a higher ago 'XX BXB slightly mix. healthy a with Our remained

million XX outstanding net EUR capital loans. During repayments of and EUR made XXXX, spent in XXX million expenditures in we

leverage of September X.Xx. XX, X.Xx Our was stated net as XXXX, below of our target

meet our look we to forward and positioned growth to XXXX, As we profitability of we factors. fiscal believe stable are well

long-term for in medium- Our to outlook our line XXXX is with targets.

within XX%, target. We model to to is our brand full and XX% production the should efficiency BXB. and growth rails realization. or and price we increase scarcity of to closer year-over-year balanced Gross healthy improve demand from revenue expect of both the euro We pace BXC believe margin maintain and right growth facilities, this XX% guide moving meet utilization with as at health and our

increase points of margin an up EBITDA to expect range XX We in to XX.X%, XXXX. compared basis of the XX.X%,

XX%. projected be tax rate around is Our to effective

expect We XXXX. production cash XX in use EUR continue retail to We and capital plan primarily expenditures to million capacity debt. excess to outstanding reducing related our approximately invest And in to store expansion.

approximately Our target leverage XXXX fiscal of X.Xx. ratio for is the end

Now I'm to Oliver. happy hand back over to

Erik. Thanks,

in we fiscal 'XX 'XX deliver made during outlook and commitment year. the promises on our strength Our ability for demonstrate and to our

excellent delivering cash and revenue are growth areas year margins, we a into the strong double-digit highlighted exceptional We expanding white over generation space ago.

with is as brand growing our strong to Our outpace globally BXC BXB strength and point. continues and from partners increasing in evident growth demand our our peers our

maintain ASP drive products, and ensure production carefully meet We full executing investing while proven realization. on stock capabilities in our healthy are distribution for demand levels strong growing to our our engineered price to growth, strategy the

next our APMA region. market, the growth of are into tap white as the We entering we space chapter largest

We and growth digital, market the in the our ahead flavor presence by consumer are following growing see of With and our disciplined the runway in we support continued long BIRKENSTOCK taking investment a on of and prudent distribution purpose of retail are to ASP. educating region brand out. the awareness, increasing share footbed engineered

it year draws to light our a to of our create was In space additional see celebrated years does to allocating our 'XX used moment the our heritage. invested shining to on a brand to as awareness, for we rich for our special purpose wholesale of the to F white close, so drive empower which nature this were appetite placements, in we great shelf brands. space shoemaking, our Many strong intended. region, retail partners work XX people

just years larger of a I've beginning Q&A would more ask operator the kindly As journey. our significant said were much session. open first XXX to the now before, the I and

Instructions]. session. from question JPMorgan. this will [Operator question-and-answer be you. coming time, the we And Thank is At conducting first today a Boss Matthew from

Congrats nice another quarter. on

XX% cited just right what you quarter are right pace the some ago. you're that decade is do business. the forward? growth XX% XX%-plus compare first a give on a you So any change for Oliver, long-term healthy you the in near could term, growth? at XX% us as to to cycling structural of you color seeing in year relative XX% pace that's past why drivers relative to XX% toughest I pace And to the the guess going growth think Or

Again, Matt, for about grow you we of think quarters your on faster. the in not or we question. next see, faster business Yes, can thank Based definitely Can our to the have course. But overall years. demand, decade, whole for we we grow

here. integrated. have vertically That's core remember, plan We we And of mindfully. our business are XXX% to the

us. employees in have the well-being for we production, to take hiring serious So over materials, sourcing we about investing and people, responsibility think raw and X,XXX It's for very globally.

qualitatively are driven writing. a Engineered means us, quality in So standards, the organization for sales very only it's production. also not distribution, quality we

it. comes quality materials, layers, raw of it's to all different So

XX-plus mentioned output years. why doubling is organization for track to record the mid- is comparison, again, right in this the just mid- you if you So And means for long-term the think And the growth operate that's that's sustainable X a think teens a the time last and we pace we you're that And this a whole BIRKENSTOCK high-teens X during you growth high IPO. growth. the And this a was business But XX-plus. yes, every company frame, years it's a values, for very, story. years. the grow the and and right makeup as core And as to roughly core your if -- situation committed just year, our -- can this, periods very we how do if be will or faster. feel of will where if doubling we strong will okay? our we it's absolutely, there then and in about grow we

And globally strong are a regarding seeing QX, season. very holiday we

this guidance we against a Remember, growth our revenue the seen QX, to of last will QX was growth. we've even XX% feel annual range. higher last comfortable what in strong likely there comps year, come the very end year. XX% like Given in that XX%

up do will definitely is a strong outstripping signal the be ending which at guidance end demand, brand the we of range, think So higher global that and here. our our supply for the

next The question Citi. from Paul is Lejuez coming from

versus margin not And you Oliver, can business in inflect in more you BXB planning talk is you when just the gross you performing? to And each BXB wondering give how positive? thinking how gross a margin by but 'XX you're XX% about that maybe those is color little how just year-over-year, around bit of overall, versus on BXC for quarter, can segments? F . XQ, about BXC are then assuming looking up XX% to are

Thank I'm one Paul, BXC on Niko. question. BXB going and forward. taking this is growth you for your the first

So Certainly, will sell-through between what orders sell-in see quarter-to-quarter a some to nuances with of BXB see BXC our continue as throughout online definitely we are Please XXXX. currently. some are driven. some and represents growth fiscal balanced we'll and is more more reminded be XX% from BXC that quarters

performing store our store locations, plan be really fiscal success. our is more more BXC, with So stores Recently expectations. executing And outperforming welcoming other are X. have every year. top-performing in XX% opened Austin Paris retail visitors Please secured is locations X,XXX our exciting really this Europe, also outperforming our in then is expectations. Chengdu open stores to week, we QX assured [indiscernible] words, expansion great opened retail and we've well presenting in just that our from well, of been and day they're performing

about gaining weight and So channel. more see our us in BXC hear . retail you expansion, retail you'll more talking

it on demand is view that wonderful where channel growth overall fill occurs. Our

BXB. distribution remain really in for our we disciplined While

of existing really they what wider to offering. And know, is more offering our their growth space they they and with go They do XX% As coming is wholesale a you offer expand from partners. shelf consumers.

So this distribution enjoy consumers with to superior full out to profitable quality and our full growth broader this realization brand disciplined with gives high broader a that there. a remain and price in any brand. our breadth of other let assortment for consumers the us reach a and a BXB, We is is

And then, margin? Erik, any the on gross maybe color

had impacted gross get didn't I if beginning. you out-of-period QX, at comparison. the margin quarterly accounting Sorry, the that noncash at year the true-ups the margin, number question Gross last of margin look a

about totaled the logistic expenses There true-up of margin basis and a COGS reclassified no these the related distribution XXX and which So that the was of impact full year gross points on more on no at was and internal all were even majority year to between for impact selling EBITDA. expenses. importantly,

as So look you trends know, And why EBITDA we not XX as margin, this margin 'XX we in improvement we for guide will the at guidance a next be should basis points for modest quarterly expect we up Overall, in is have -- said quarterly higher 'XX margin 'XX. and gross will gross a giving year. EBITDA as go we for margin while

next will be question Evercore. The from Michael from Binetti

double to And little about ago? bit. Is as I on click margin as a any unusual Let guess, first about at me know quarterly I going Thanks a it the that the are was to an gross XQ, baseline going there roll a on we about other there the in into need should for items we keep appropriate XXXX, year into color how then we quarter. think on think big XQ? look reclassification we to trends? out think and XQ forward revenues,

the aligned have obviously, difference tough And speak much, quarter. earnings cadence very obviously spend in ended Is and think mentioned BXC a in margins. quarter the fourth the compares lower. SG&A, quarter. finally, revenue year? it the material quarter-to-quarter. the this could I'm the first mid-XXs to two curious on that affects you compare in in to much the with can the pretty hasn't and really in closely tough channels it about started last on -- the growth then past It as between just growing year obviously You if But is Anything the very year

curious about snapped I'm revenues half as Or high and it So to SG&A like to think in is the to growth high best as through in mid- it accelerates single-digit back. first its it first half? rate the teens the a year?

the this model numbers question. to question. for will your Thanks and quarterly our in a 'XX Alexander. that we I is basis part third of quarters. good the And the is this quite take are first Michael, the cadence, 'XX, with the confident

Erik first that. a But the about. of some thing have the is basis start And a are happen SG&A So clean. we know one also likely the to overall, quarter, you margin no in And and 'XX. for the I'm higher on especially This items no with in 'XX slight gross margins 'XX then of back then that of unusual are maybe half 'XX. completely to seasonality. penetration, remark the is is hiccups, There the sure with just BXC last course, mentioned you of ratios. need aware year. good yes, we margin. fourth impacting to uptrend gross -- seeing will and

Okay. SG&A? The

the on starting pure quarters. the also seasonality channel 'XX but taking good Well, this same just is point fluctuations, numbers. and SG&A for good the on point is the it's SG&A, 'XX depending a mix, There cadence and are starting also the but a

The next Group. from from coming question Telsey Dana Telsey is

this year, the ones, Americas, seeing, about, Is year. that's are in coming think wholesale especially going What you're more the existing the from thinking How you And it what I more XX% more trends? anything there order the just quarter? that new Or penetration given increased on . given in still payers of production you continue also stores, at? too? believe, and accounts? are to openings. accelerate store online? As new seeing stores did the are it looking X% the are current on And it the up of were ASP around traffic this sounds What like in you you up forward, capacity

I'll going color David, Dana, then over us the the first on question, to give my of take this the Niko. to and some part piece. I'm hand to team is colleague, Americas

definitely So being see on a previous years. volume ASP than we versus of driver bigger growth, growth units

you capacity categories space such BXB our but to it category, is growth, revenue like-for-like our the the all capacity increased we ASP to close finally, also APAC of space incremental and APMA pricing our really other by that, know, allows to such positive also expect [ assortment our As us shelf white areas their we also Profenyl as growth. ]. contribution growth really product existing with business. business unit gain offering. on play benefiting that partners forward. These that as going high widening Further but have are with unit region, unlock to or mix a are Even predominantly, to this driven fields

Dana, this is David.

the follow to up back question. on of half that Just

repeatedly XX% As existing only of us, accounts you've in existing heard from our but revenue from growth doors. not comes

of The shelf increased and space, our penetration, increased that new mainly in that current be tactical distribution points distribution. getting would strategic. in spread ones are points very very, collection, shows we're only increased our that So of

to but spoken established specialty, For previously, basis, sports very that we've, we've about nice us, specific . small over but channel. disciplined year, a where the specifically in growth this most last related very, sport

. Vasilescu BNP will be from from Paribas. next Laurent question The

leads we should of really Asia? kind to to wanted Last three-part XX assume And it That 'XX, for fiscal a may. be I I this year, us weighted year? to stores year many if should for stores you question, the question. second ask how opened

you the is tote lastly, China 'XX and still XX% is the Oliver, you closed goes you mentioned your do And the EUR Where term. you very APMA about roughly the you think do brand offering region, what that think, positioning was only in X/X for of I the think of million can small, XX then and longer-term talk China longer opportunity? business. mentioned of but that about FY so

going hand Niko Thank stores again. your over is related, Asia to the I'm do part is which then question. over to of to you I'm Claus the piece. going it, first This for for

As you a pillar for is know, massive us. retail growth

and operating added in have stores XXXX. currently We are XX adding stores, XX

have We more. open to plans

locations Cash disciplined go but is, XX within know, payback requirements. on very that regards after, are We months. investment our we in return of as also you

So but expand yes, very you also if we we consciously, do expand, will.

fiscal to for increase door by aim is the 'XX Our fleet XX%.

significant of has as to X. our well fleet. store from perform day is a growth is every door that's that So really performing and opened said, And I

exciting We So us just come. having opened up. see more we some to lined -- [indiscernible], opened in Amsterdam, you really Europe, locations opened we just

success said, there I As Paris regions. in in and others Europe, very, so a the many are very other is great story

to come on more So that.

entering Hello the Laurent, question. Klaus here China

for growth, and to we all, know are we we store of operating our yes, we sales, First are long accelerating it's a delivering two are our to development. are we And a and history mean important mono in China. have now -- that are partner as I BXB we owned of X-point not now we new there. you know, signed stores. up

digital On side, mini-cat program. and sales channels we social the as offered the TikTok

year, we I will forward, mean, looking double the next So fleet. for pace keep this sure,

that hear. where you goes for closed over think on great That's time? a to and year do to offering, this And

Yes.

is this again. Niko So

you than is So grow growing it to and at offering, of know, continues that now twice close pace business note sandals as as to of double the Important our our as to sandals. digit. more is fast

closed-toe will business, while both overperforming. we go It is of the areas So more. grow

set one, closed-toe . this ourselves haven't increased going a an for share of but business forward. you target see will We

. Konik be from will question from next Jefferies. The Randy

Can And lastly, the And think of in us XX% Or lot kind a Can of lot that that give in you a getting sandal? the to driving. driving what are of closed-toe? give on closed-toe that? mix what's you more XX%, within the just that on drivers again, forward? you some of Boston views a breadth the kind difference little more flavor of do little to assortment flavor category. going us unpack a Just that's close is approach more. could the little that, a Is are there driving other of versus ASP that average

David. it's Randy,

very that a which is. clearly, that's Again, no ASP. actually across been general. of is we're off, now. convertible know collection beauty from amount that been the I X in entire clogs Tokyo. is of because And the a lucre, called to ASP new at specifically, is its clogs X the of closed-toe higher closed-toe. there's to. interest by history. ASP they right much what exact selling it are globally encompasses seeing of copy sell-throughs I in close total has slipper, that's the its it years don't driven and to of clogs. from also clog the do that think First than boots, it's the in now It's for retail sandals you out across in XMat closed line the U.S. the positive mix of higher the spilling it the velocity to dollar changes season strap to just clogs the . Obviously, not is everything anything momentum all over to Boston. a may has impact as on But our overall, the toe close have than certainly the very, The business In best clogs element are have with having even in and of an is and seen paste The There's well. beauty every

and close Europe to Nico. think I'll so bit boot to pass this shoe seeing is more of a reaction, I a

indeed. Yes, David. Thank you,

a remember of So very success where our year silhouettes. boot QX fiscal launched fiscal very, strong last maybe saw we 'XX, year,

price the four launched that top those and above sellers cord -- out top well. of a the Highwood EUR really tires fact, of XXX were press in very XX and EUR performed In XXX, last shoes, BXC, and point we the XX -- at

just boots of BXC and and are also it business. you asked as can with and business. So the till, where the the BXB quite laced-up we to invest doubled success shoes heading, but what of partners our collection. success spare first that intake great with order In not our BXC because the selling range great into see, we do was closed shared the partners do us, And into we our And part through shoes. our the that broaden our we are for layup to 'XX, season we and us [indiscernible] for great in is the learnings we take season that was the significant now

order doing exactly that really sell-through intake now the positive. is Now of

of continuation with, of and a and overperforming laced-up the the see trend rest the performing shoes Boots QX again, business. last of really we So well and against

half, ask maybe in the between back the for BXB-led BXB BXC half At BXB may XX% us least whole the follow-up, -- just BXC more for thoughts than or qualify, us you higher first guide, more to In our BXB, one In give can do 'XX growth half BXC? in but BXC. Great. an effort and properly recognizing XX% some first the help year. in I for [indiscernible] is Erik. calibrate that you to think of Can the

lower or to can or XX% would Just to us of channels flavor the give between us XX% just and helpful. you grow they higher super the kind any how should be relative give

of because question. It the wasn't

So down you break detail, but it's in moderate know, don't it all a -- it's areas. growth in we as

And moderate both whatever have we again, business year, the the bit and we past, for BXC a is is say no positive moderate as as I I a for. yes, overall sides. with would therefore, But And the as answer. us overall don't discussed it's obviously, balanced demand know the specifics. it's the seen year. this seasonality enough So what to a growth in asking have, quarters as margin-wise. in moderate I for business And growth, on that's full BXB it's a plan think,

I is follow there up want This to just also. Megan.

in the reminder XX% the to already which grow BXB we'll BXC business both we forward sizable look And that a is BXC. a business into and of as pretty continue BXC, is Just XXXX.

start greater BTC BXB. the I and side, half the toward that BXC looking that that On side, will versus on retail probably be at be see more a think the to additional we'll on stores contribution you'll side

America. will Lorraine The of from Bank be question next from Hutchinson

step grow continued talk just And can it region about percentage think for and back term. the the place to about partnerships progress distribution outsized to talk you What you longer growth? wanted over on time? and AMA of your over could putting just in sales I do the

This is Klaus.

about to are planning XX% share. think I we grow

a cadence, like markets. out our are balancing we'd that speed we please? the question, plan. And should in have of repeat can So the to mature regions. That's the double growth the in the say you region second APA

and on the for hoping just partnerships was I your on progress an to continue building that update you need distribution that growth.

Okay. Thank you.

As you partner China. a know, for we signed up

see and we very mainly for the almost we to prepared, context open our development are right in business here Asia, Southeast that also are on over you We a doubling and well on now. partners BXB stores. section, focused BXC much very are more can And

operating ourselves stores have the only this side, And now in like BXB stores. stores year. by XX where are We XX we we added XXX

forward So very well. going

Oliver okay, a okay? you So is Asian very focusing really again, I the region to double control for APMA us. only a establish that rest speed to China, understand way aggressive is mindful growth we're good So say, the we not of a Southeast sorry, -- the to try think the in try it's strong for that's business. on compared speed important the to -- and world, It's we

And have Australia, but is a very, of very, business strong and forward. retail very our We where for good. Japan, we focus strong has a lot own very in especially to investors, a of positive moving balance course, up very business try a China main catching in everything

you ask in stuff crazy way situation mind, change in other if these from regions expect will political don't keep questions So around. us the exactly the because

over the double region forward, XX%. grow moving way speed. We mindful this So in

say to It's it's Thank important more really important I and pretty overwrite but that's don't speed but would -- you. it's So keep -- in it's this. And nice it area. balanced. this --

from Simeon BMO The Siegel next will Capital Markets. question from be

at have Erik Can Really the we happy Hope regional think And about environment I that large, on clearance. see see versus as revenue, there on there's seeing outside, thinking thoughts restatements, cetera? or we how you -- just last residents. speak et know a step promotional side you Alexander, And you can great you're that then your how some families just you're can the share comfortable a model holidays. breath the can for P&L, chance maybe higher guys? that see. its brand then that very just about past level. we're strong versus wholesale maybe you -- your competition clear element we you what to the from are the versus

So of in guide gross becomes any color of there, progression margin. to lapping about on a promo next you're thinking [indiscernible] And gross good that how approaches margin the context environment then relevant. clearance when the year

long thanks, question, Sami. That sounded a like but

start and a logistics and distribution comment very not P&L. me with costs the let in your It's reclassification can a regarding So clear. restatement. It's internal It's which of be shown 'XX. [ it we Cox we from show so do companies some on the like and cleaned do of now companies sort majority the as can it up this of ] it. And sales

it margin. showed our so in gross And

reclass a EBITDA, you of logistic that's costs, So impact as impact. internal seen, also have no noncash

to of to where we think now. see I I think I'll being that's run we hand you improvement then your year all the David. . And quality to details. of the first look if the to So to at company, we came understand. big the sort numbers And And and feel important listed as had had of we to a over come see question, yes, fine family from a used and

think things on but through demand we full I I what out lot that that are a the We're the shopping seeing there. price. the is about question is that promotional selling they're intentionally few fortunate one promoted, general at environment, brands. Simeon, bifurcation think those very of for you're really people Yes, are this

very Having that that, is digital As what amount a the may manage going very industry very, carry time mathematically are you for But such scarcity assortment, term low said to broad you certainly, a business level where have see sizes with style. is any you breadth. given any of we hash, a of you discipline know, which high depth in when a more do be the broken at small. given developed quite

know So XX%. it's business, in U.S., MAP retailers realization which our over right on so with own experience well specifically tight digital the price pricing, now, again I who season to our is largely you're full over we managed XX% BXC wholesale referencing

bit So more you're a certainly to going not any but see depth whatsoever. breadth, . significant

And helpful. to Erik, Really . ramp line great. about ramp and benefit becoming to that work way a really think -- it just, then we through item? starts the [indiscernible] That's when we any

in has only that ], Pazebalg in [ how thanks built far, pleased so and also not Simeon, Yes, in this Overall, we gone Portugal. our [indiscernible] Alexander. part. take I is new factory are will the for absolutely expansion in that over the in with out but existing well

did 'XX has growth. foundation in steps 'XX been the expansionary the unit we So our and of

already, primarily the transitionary with will expect confirm the of year. in in year the especially expected quarter full mention in in XX as gives to that's we we a that better absorption absorption are going situation to peak every -- was was pressure year -- costs important and think pressure we And units. clearly . a where now of a I of a us it's And this also communicated also margin substantially discussed third of the only This will and that year, not as margin. drag, the into see the opportunity we back It in that single 'XX fixed to grow half XX%. upfront.

is question from from Mark next coming Altschwager Baird. The

a looks XXXX a XXXX. driver. similar X%. Thank about XXXX. you. for And That that change good on Congrats a the It there on in year. think ASP price quarter about as of pricing. accounted Call strong a about expect way to big question was we I half Should like well? mix. also much it, and X% ask for the wanted to of Is increase

right. the for Mark, question. this absolutely And Thanks Alexander. is you're

mix you're products. by buying is We dose like-for-like driven are premium example into when that approximately with and X/X continuously closed also mentioned as consumers here. in points product yes, And ASP looking I into mentioned think primarily unit we price approximately So and Nico growth, 'XX, expecting growth. pricing more an ASP X/X higher

a But channel 'XX, are from leather share, major a on and supporting into trend also continue but mix. expecting embellishment higher So future. ASP product influence on in have the will overall, this we not are the this Retail channel will expansion.

next Williams Poser question be . will Sam Trading. The from from

but is the and that of stores those in happen stores to And sales. 'XX fiscal -- total. XX-plus BXC that, the want bit to XX% in Is Americas, then into just incrementally. ex more, it? that of over BXC dig When open the the BXC -- digital. think the most happens of drive around business and a Europe out way in the Asia about Will represents XX% of in probably the I that especially percent Americas, business the little growth later

it's continue U.S. by Sam, right side that retail to to to on the region. channel, your we question, ]. the Megan of and [ in APA . to and seeing side stores as not contribution And side your digital the see growth think very to ramp growth by the we're on And additional Yes. into other will In that year yes, the region, particularly Obviously, you're particular, BXC the will think we get don't predominantly look BXC But the stores. B I additional to those on BXC we we're this digital coming continue -- BXC -- coming we I be from drive from will there. move and and in U.S., of part growth from providing the growth the the both latter growth in regions. e-com. higher, strong a the coming lot BXC as channels

that year. you is them to term, digital do would of foresee you you guess, a you digitally have call than total be these you just I guess, the penetration, the going XX-plus how many I higher and foresee stores globally? ahead percent -- need over start stores to XX-plus stores a Is term, you're long in long do In the open And open stores what producing. get just mature? need number to like mature really to stores this tough really And owned and going

here. David it's Tim,

to door we're our going increase XX% by off, count physical First in XXXX. doors

we physical the world. touch market, not in little play But becomes market It pretty little that new bit . may get doesn't you optimal mathematical. again, It's It more serve I different slightly It as to brands. little and right far the once other a to it I would a going you different that we on It as most the balance bit we It XX% a I seeking might that's purpose may far as grow it's stores it open in would might other. as see. have So the balance retail try in digital around say by mean a pretty optimized. that incremental serve, anecdotal. openings. door optimized to top growth not say, Once business, from will digital and out the -- it's penetration points BXC years now be you're growth purely of the pretty aggressive that's dollars, have versus say would few to the healthy think we region. a is. we've that learned but lean a grow. channel above to think more one over I actually play last by And of XX% little share quarter. the revenue so be I out that it with into But where will about brand, much as going

Janine question BTIG. from Stichter . coming next The is from

And younger owned? what you're seeing number I or I'm seeing just there wanted a what you're pairs any demographic. seeing seeing to of terms just you're there. get what customer lens. you're audience? a behavior a change Or more Are in the Is curious seeing either on curious from color you customer in repeat purchase of also

your for question. Thank Niko. is This you

to of members. than still has grow. how our purchases, fast nonmembers. we membership a members imagination There in do million currently It's been growing XX% buildup already your use you spending very strong have So base -- XX% regards this with growing year-on-year now can repeat

more with shoes, segments. but adopted members with in than member expensive members see categories, becoming such categories typically So is into is a job our shoes, done nonmembers. what transcend that let's than we with also also We've other newer laced-up much as us, business, great faster of say, categories with on typically install sort they clearer

members. our becoming So personal how us And treat see you'll more we exclusive. in more

very faster of is also the that online. the We meant a for large much, And than is members that that typically through product sells line. very, exclusively much of displayed have amount rest

membership, business significantly. be to healthy a members, growth very growing yes, So in very a yet healthy but with

Duffy The will from from question next Stifel. be Jim

cash of midpoint I lines? in improvement CapEx. Can there flow about some at repurchases? want on and debt. cash just does as You've that cash in X.Xx EBITDA capital guide Or given working to cash free to talk allocation. objectives? us net generation such some capital modest The use of ask flow net leverage the offset sort imply share adjusted the implies Is of the you

the Happy Thank comparatively we of over. business, which to target our of you. shows next of end rich, is the X.Xx below Erik. Xx year. Yes, the for year and the cash hit are leverage, goal And It's we take around strength X.Xx.

the this same Going much forward, as the is year. was plan it

First of all, invest in the business. That's always priority. first

the think So will XX we to pay around for Afterwards, year. if it. plan down business, something is of needed, if EUR continue million and current we debt. it do our helps the

the leverage that everything will X.Xx decision Board, expect, way. loan. conversion strength the on of right a We pay U.S. the very and be the And obviously. eventually end flow term after But business said, the the I shows as we strong this year. our are made off by of cash

$XXX million What debt. is That's thinking there $XX You've implies of offset us than EBITDA net flow? are the leverage in net year-end. I'm impeding on guide, like Erik, at some of net in the the curious, that's fiscal CapEx the free of 'XX at million guide cash so year-end. the you just midpoint given sort terms or better debt. X.Xx progress

Calculation wise, you correct. are

this, the capable needed, want build most is as afterwards. the one. whatever personally, yes, debt, because U.S. inventory USD else to you it's euro for loan loan decided CapEx, million. know, It's be we free term another invest around everything up Plus, XXX priority and the bond first board will just expensive the there's is into and there's . by or a of the be Of me, either on have investing in course, we be term to

from . Rambourg will question be from next Erwan The HSBC.

if managers it margin wanted maybe on by anecdotal but to APAC, And different or the operating to back from I APM than on the a P&L what it -- linked regrouping regions manner Congrats APAC particular to particular a past? understand just implications Is of in year. accretive? APAC? to come margin countries an or dilutive? moving together that are just synergies great Is gross in . is

over Alexander. then is this hand the Erwan, first and Nico. I'll part to take

to it a leverage keep much really points with in compare simple the but to bigger you So business get more of on that the we price business, if margin nice the have side, share of -- you course, don't regions. full that

Some And region expect mid- bigger. in already to markets are no long we pressure developed. margin term, from that the quite making

But starting definitely fully supporting up in margin. year fair, markets, built is this full don't that when X but it's X, So to profitability ramping, our and some the or that have year be into plan. you in

Thank you, Alexander.

into realign segment and Americas, structure to our decided Basically, we similarities in beyond structural but yes, the but operational see also change, taken East, been Europe between Middle also APAC. has EMEA segment the because on Just APAC. advantages and decision we Africa,

provide I EMEA the leadership the and So all quarter's will just with QX Asia and execute financials to with release new in new will Klaus take segment formation next and We've this recast space of India segment segment, February. care the Bauman of in results APAC Pacific, under . started the in in responsibility segment.

contribution said think was APMA check, China you just mid-teens I to a And sales. to

Or that about Is . China? that's is X%. So Greater China? that Mainland

The next question will be from Jay Sole from UBS. .

Great.

and newer shoes products. about of the lot a talked closed-toe You some

that You performed expect XQ and next just sandal injection how talked that molded see about business your you and year? in to what in business

Oliver. Jay, this is

You're the outdoor the talking segment, ready water sandals. [indiscernible] about

cover in this just was segment. Asia region on and more around So the Actually, humidity Southeast the working new it we conditions are invented to tropical AMA total.

the U.S. Europe, and sudden a in the at outdoor starts in pretty performed segment of this good. All

in push globally. will some So the, out we areas outdoor-ish that just ready where let's up in collaboration hiking, occasion be these some makeups new category introduce environment. a and coming say, and styles water special will also wearing it's rolled new soft some There be

in may or You globe of trotter outdoor other in and it U.S. REI doors the some in see Europe. some

set very classical we up promising category. the this invested why in plastics of kind it's different in start [indiscernible] manufacturing completely new because this it's So sandals. than a And that's technically process it's for wise,

from Adrien And Sachs. question the will Duverger from next be Goldman

the on manufacturing follow-up just a that you mentioned. Just

over your your expect expectation? of how they terms supply additional expansion evolve to plans, next to are In progressing do factory how the investments and X the you years. the X versus And

margin or just 'XX, out absolutely touched what on The We drag far. this nothing question we is continue done in in factory, XX call, only this that here's -- think plan, X earlier this out. gilet. X a in And will is on me and wrap what months. also building in we 'XX on in expected so especially until that and on will I Adrien, the not let started up not last is 'XX. is which everything the but the new plan other

good So now, year. all for

today's question-and-answer conclude have session, And this the reached you. of end we Thank does conference. the and

You participation. may Have Thank you for time. disconnect your day. lines your wonderful at this a