Birkenstock's Q1 2025: Contradictions in Growth Strategies, Margin Projections, and Tariff Management

These are the key contradictions discussed in Birkenstock Holding plc's latest 2025 Q1 earnings call, specifically including: B2B-B2C Growth Expectations, Gross Margin Projections, Revenue Growth Expectations, and Tariff Impact:



Strong Revenue Growth and Market Demand:
- Birkenstock reported a 19% increase in revenue for Q1 2025, which exceeded their guidance range of 15% to 17% for the full year.
- The growth was driven by strong consumer demand for Birkenstock's products, particularly during the peak holiday season, and by double-digit volume growth and mid-single-digit growth in average selling price.

Closed-Toe Shoe Expansion and Market Share:
- The share of closed-toe silhouettes in total revenue increased by 600 basis points to over half of the quarter's revenue.
- This trend was fueled by the popularity of clogs and lace-up shoes, which accounted for over half of the top 20 selling styles, driven by strong consumer loyalty and demand for year-round footwear.

APAC Region Growth:
- Birkenstock's APAC business grew 47%, more than twice the pace of the overall business, contributing 13% of total revenue.
- The significant growth in the region resulted from accelerated store openings, early shipments to strategic partners, and strong brand awareness and demand, particularly in China.

B2B and DTC Growth:
- The B2B business grew by 30%, with strong sell-through and reorders from key wholesale partners, while the DTC business grew by 10%.
- This balanced growth is a strategic move to align demand with the brand's engineered distribution strategy, ensuring healthy stock levels and maintaining strong full-price realization.