Q4 2023 Birkenstock Holding PLC Earnings Call

January 18, 2024

Unknown: --are in a listen-only mode and the call is being recorded. Following the presentation, we will conduct a Q&A session. The company has allocated 60 minutes in total to this conference call. At this time, I would like to turn the conference over to Alexander Hoff, Vice President of Global Finance. Please go ahead.

Alexander Hoff: Good morning everyone and thank you for joining us today for Birkenstock's fourth quarter and fiscal year '23 earnings call, which is our first earnings call as a public company. Earlier this morning, we announced our latest fourth quarter and fiscal year 2023 results. As a reminder, our fiscal year ends [inaudible]. You may find the supplemental presentation connected to today's discussion on our IR website, birkenstockholding.com.

Alexandra House: Walter just building year. <unk>, which is our earnings call. Earlier this morning, we announced our latest bulk water and Cisco. Do you agree with us.

Alexandra House: <unk>, which is our earnings call. Earlier this morning, we announced our latest bulk water and Cisco. Do you agree with us.

Alexandra House: Earlier this morning, we announced our latest bulk water and Cisco. Do you agree with us.

Alexandra House: Do you agree with us.

Alexandra House: As a reminder, our fiscal year ends. Yeah.

Alexandra House: Yeah.

Alexandra House: You may find the supplemental presentation <unk> today's discussion on our IR best last mile. <unk> already talked about.

Alexandra House: <unk> already talked about.

Alexandra House: Before we begin, we would like to remind you that some of the information provided during this call is forward-looking and accordingly is subject to the safe harbor provisions of the federal securities [inaudible]. These statements are subject to various risks, uncertainties, and assumptions, which could cause actual results to differ materially from these statements. These risks, uncertainties, and assumptions are detailed in the mornings press release as well as our SEC filings, which can be found on our website, birkenstockholding.com. We undertake no obligation to revise or update any forward-looking statements or information, except as required by law.

Alexandra House: These statements are subject to various risks uncertainties assumptions, which could cause actual results to differ materially from these statements. These risks uncertainties and assumptions are detailed in the mornings press release. As well as far as the SEC filings, which can be found on our website. The stock by installing both of them. We undertake no obligation to revise or update any forward looking statements or information, except as required by law.

Alexandra House: These risks uncertainties and assumptions are detailed in the mornings press release. As well as far as the SEC filings, which can be found on our website. The stock by installing both of them. We undertake no obligation to revise or update any forward looking statements or information, except as required by law.

Alexandra House: As well as far as the SEC filings, which can be found on our website. The stock by installing both of them. We undertake no obligation to revise or update any forward looking statements or information, except as required by law.

Alexandra House: The stock by installing both of them. We undertake no obligation to revise or update any forward looking statements or information, except as required by law.

Alexandra House: We undertake no obligation to revise or update any forward looking statements or information, except as required by law.

Alexandra House: During our call today, all revenue growth rates will be stated on a constant currency basis, unless otherwise stated. We will also reference certain non [inaudible] financial information. We use non-IFRS measures that we believe represent the operational performance and underlying [inaudible] the business more accurately. The presentation of this non-IFRS financial information is not intended to be considered by itself or as a substitute for financial information prepared and presented in accordance with IRS. Reconciliations of IFRS to non-IFRS measures can be found in this morning's press release and in our SEC filings.

Alexandra House: We will also reference certain non <unk> financial information we. We use non <unk> measures. Beef that we present, the operational performance and underlying developed their business more accurately. The presentation of this nominal for US financial information is not intended to be considered by itself or as a substitute for financial information prepared and presented in accordance with IRS.

Alexandra House: We use non <unk> measures.

Alexandra House: Beef that we present, the operational performance and underlying developed their business more accurately. The presentation of this nominal for US financial information is not intended to be considered by itself or as a substitute for financial information prepared and presented in accordance with IRS.

Alexandra House: The presentation of this nominal for US financial information is not intended to be considered by itself or as a substitute for financial information prepared and presented in accordance with IRS.

Alexandra House: Reconciliations of <unk> to non <unk> measures can be found on the modest press release, and then I'll ask a few topics.

Speaker Change: Joining us on the call today are Oliver Reichert, Chief Executive Officer, Erik Massmann, Chief Financial Officer, David Kahan, President of America, Nico Bouyakhf, President of Europe and Klaus Baumann, Chief Sales Officer.

Speaker Change: And Clark Valmont, Chief sales officer.

Speaker Change: Following our prepared remarks, we'll open the call for your questions. With that, I'm very happy to hand over the call to Oliver. I would like to welcome everyone to the call today, and I'm happy to discuss fiscal '23 and fourth quarter results.

Following our prepared remarks, we'll open the call for your questions. With that, I'm very happy to hand over the call to Oliver.

Alibaba: With that I'm very happy to hand over the call Alibaba.

Oliver Reichert: I would like to welcome everyone to the call today, and I'm happy to discuss fiscal '23 and fourth quarter results.

Alibaba: I would like tobacco, everyone to the call today, and I'm happy to discuss fiscal 'twenty, three and fourth quarter results.

Alibaba: On today's call, I'll share a quick recap of the Birkenstock equity story we presented during the IPO and some highlights regarding our fiscal '23 performance. Next, David, Nico and Klaus will give you an overview about their respective regions. Then you will hear from Erik and Alexander with the review of the financials and our initial outlook for fiscal '24.

Alibaba: Some highlights regarding our physical trading performance. Next David with nickel and Klaus will give you an overview about their respective regions. Then you will hear from Aragon, Alexandre with the review of the financials and our initial outlook for fiscal 'twenty four.

Alibaba: Next David with nickel and Klaus will give you an overview about their respective regions. Then you will hear from Aragon, Alexandre with the review of the financials and our initial outlook for fiscal 'twenty four.

Speaker Change: Then you will hear from Aragon, Alexandre with the review of the financials and our initial outlook for fiscal 'twenty four.

Aragon: So let me begin with a brief overview of our equity story. We are aware that it's not easy to compare Birkenstock to any other listed company. Our business model is unique in many ways. We are the inventor of the footprint. We are in the [inaudible] business offering a functional benefit to consumers that never goes out of style. We are guided by a simple yet fundamental [inaudible]. Human beings are intended to walk barefoot on natural yielding ground, a concept we refer to as [inaudible].

Aragon: We are aware that it's not easy to compare but we spoke to any other listed company. Our business model is unique in many ways. We are the inventor of the footprint. We are in the food business.

Aragon: Our business model is unique in many ways. We are the inventor of the footprint. We are in the food business.

Aragon: We are the inventor of the footprint. We are in the food business.

Aragon: We are in the food business.

Aragon: offering a functional benefit to consumers that never goes out of style. We are guided by a simple yet fundamental [inaudible]. Human beings are intended to walk barefoot on natural yielding ground, a concept we refer to as [inaudible]. Our purpose is to empower all people to work as intended by nature. We are a brand backed by a family tradition of a quarter of a millennium with their resilience, timeless relevance and credibility of a multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For us, 2024 is a very special year in

offering a functional benefit to consumers that never goes out of style. We are guided by a simple yet fundamental [inaudible]. Human beings are intended to walk barefoot on natural yielding ground, a concept we refer to as [inaudible].

Aragon: We are guided by our simple yet fundamental inside you. Human beings are intended to walk barefoot on that true yielding crops. Concept, we prefer. Not talk about it just skewed. Our purpose is to empower our people to work as intended by nature. We are a brand backed by a family tradition of a quarter of our millennium with their resilience. <unk> relevance and credibility. For multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For Us 'twenty 'twenty four is a very special year.

Aragon: Human beings are intended to walk barefoot on that true yielding crops. Concept, we prefer. Not talk about it just skewed. Our purpose is to empower our people to work as intended by nature. We are a brand backed by a family tradition of a quarter of our millennium with their resilience. <unk> relevance and credibility. For multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For Us 'twenty 'twenty four is a very special year.

Aragon: Concept, we prefer. Not talk about it just skewed. Our purpose is to empower our people to work as intended by nature. We are a brand backed by a family tradition of a quarter of our millennium with their resilience. <unk> relevance and credibility. For multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For Us 'twenty 'twenty four is a very special year.

Aragon: Not talk about it just skewed. Our purpose is to empower our people to work as intended by nature. We are a brand backed by a family tradition of a quarter of our millennium with their resilience. <unk> relevance and credibility. For multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For Us 'twenty 'twenty four is a very special year.

Our purpose is to empower all people to work as intended by nature. We are a brand backed by a family tradition of a quarter of a millennium with their resilience, timeless relevance and credibility of a multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For us, 2024 is a very special year in

Aragon: Our purpose is to empower our people to work as intended by nature. We are a brand backed by a family tradition of a quarter of our millennium with their resilience. <unk> relevance and credibility. For multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For Us 'twenty 'twenty four is a very special year.

Aragon: We are a brand backed by a family tradition of a quarter of our millennium with their resilience. <unk> relevance and credibility. For multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For Us 'twenty 'twenty four is a very special year.

Aragon: <unk> relevance and credibility. For multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For Us 'twenty 'twenty four is a very special year.

Aragon: For multigenerational business, which supports our strong heritage and drives the premium feeling of the brands. For Us 'twenty 'twenty four is a very special year.

For us, 2024 is a very special year in which we celebrate our 250th tradition anniversary. We are a universal brand catering to all people, regardless of age, gender, and geography. We have a growing global following exhibiting high engagement and brand loyalty. For instance, US consumers own 3.6 payers on average today. And 90% of our buyers come to us through unpaid channels.

Aragon: For Us 'twenty 'twenty four is a very special year.

Aragon: which we celebrate our 250th tradition anniversary. We are a universal brand catering to all people, regardless of age, gender, and geography. We have a growing global following exhibiting high engagement and brand loyalty. For instance, US consumers own 3.6 payers on average today. And 90% of our buyers come to us through unpaid channels. Our total addressable market is the global population. Our products cover a broad range of price points. We have a significant addressable white space across geography, category expansion and user occasion. Additionally, we also have white space with our own store openings and expansions of our DTC penetration.

which we celebrate our 250th tradition anniversary. We are a universal brand catering to all people, regardless of age, gender, and geography. We have a growing global following exhibiting high engagement and brand loyalty. For instance, US consumers own 3.6 payers on average today. And 90% of our buyers come to us through unpaid channels.

Aragon: We are a universal brands. Turing to all people, regardless of age gender and geography. We have a growing global following exhibiting high engagement and brand loyalty. For instance, U S consumers 136 past on average. Today and. And 90% of our buyers come to us through unpaid channels. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: Turing to all people, regardless of age gender and geography. We have a growing global following exhibiting high engagement and brand loyalty. For instance, U S consumers 136 past on average. Today and. And 90% of our buyers come to us through unpaid channels. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: We have a growing global following exhibiting high engagement and brand loyalty. For instance, U S consumers 136 past on average. Today and. And 90% of our buyers come to us through unpaid channels. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: For instance, U S consumers 136 past on average. Today and. And 90% of our buyers come to us through unpaid channels. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: Today and. And 90% of our buyers come to us through unpaid channels. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: And 90% of our buyers come to us through unpaid channels. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration. Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Our total addressable market is the global population. Our products cover a broad range of price points. We have a significant addressable white space across geography, category expansion and user occasion. Additionally, we also have white space with our own store openings and expansions of our DTC penetration.

Aragon: Our total addressable market is the global population. Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: Our products cover a broad range of price points. We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

We have the significant addressable white space across. Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: Geography. Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: Category expansion and user occasion. Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: Additionally, we also have white space. With our own store openings and expansions of our DTC penetration.

Aragon: With our own store openings and expansions of our DTC penetration.

Aragon: We have made in Germany over 95% of our products and 100% of our footprints are produced in one of our six owned factories in Germany. 100% of our footwear is produced in the EU, one of the safest and most regulated markets in the world. Most raw materials are sourced from Europe, which ensures supply chain reliability and the materials also adhere to strict quality and social and environmental standards. We are committed to uncompromising premium quality. Our products are made to last. We are a unique business. We are neither luxury nor fashion footwear, but our business model has elements that are typical of the luxury industry,

We have made in Germany over 95% of our products and 100% of our footprints are produced in one of our six owned factories in Germany. 100% of our footwear is produced in the EU, one of the safest and most regulated markets in the world.

Aragon: Well, 100% of our footwear is produced in the EU. One of the safest and most regulated markets in the world. Most raw materials are sourced from Europe, which ensure supply chain reliability. The materials. Adhere to strict quality and social and. Viral mental standards. We are committed to uncompromising premium corporate team. Our products are made through last. We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Aragon: One of the safest and most regulated markets in the world. Most raw materials are sourced from Europe, which ensure supply chain reliability. The materials. Adhere to strict quality and social and. Viral mental standards. We are committed to uncompromising premium corporate team. Our products are made through last. We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Aragon: Most raw materials are sourced from Europe, which ensure supply chain reliability. The materials. Adhere to strict quality and social and. Viral mental standards. We are committed to uncompromising premium corporate team. Our products are made through last. We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Most raw materials are sourced from Europe, which ensures supply chain reliability and the materials also adhere to strict quality and social and environmental standards. We are committed to uncompromising premium quality. Our products are made to last. We are a unique business. We are neither luxury nor fashion footwear, but our business model has elements that are typical of the luxury industry, that is a premium quality product, market [inaudible] and the high desirability of the brand, which altogether translate into a premium margin. Other than the luxury industry, which is primarily built on price and social status, Birkenstock is a true purpose and typecast brand, as such, we are beyond fashion. Our disciplined engineers distribution model drives consistent and predictable revenue growth by strategically allocating products across channels and segments to maximize profitability and to balance demand and supply, to create [inaudible] in the market. We delivered a strong financial profile, 20% revenue revenue CAGR over a decade, 60% plus gross profit margin, 30% plus adjusted EBIT [inaudible] and our fiscal '23 figures underscores this once again.

Aragon: The materials. Adhere to strict quality and social and. Viral mental standards. We are committed to uncompromising premium corporate team. Our products are made through last. We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Aragon: Adhere to strict quality and social and. Viral mental standards. We are committed to uncompromising premium corporate team. Our products are made through last. We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Aragon: Viral mental standards. We are committed to uncompromising premium corporate team. Our products are made through last. We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Aragon: We are committed to uncompromising premium corporate team. Our products are made through last. We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Aragon: Our products are made through last. We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

We are a unique business. We are neither luxury nor fashion footwear, but our business model has elements that are typical of the luxury industry, that is a premium quality product, market [inaudible] and the high desirability of the brand, which altogether translate into a premium margin. Other than the luxury industry, which is primarily built on price and social status, Birkenstock is a true purpose and typecast brand, as such, we are beyond fashion. Our disciplined engineers distribution model drives consistent and predictable revenue growth by strategically allocating products across channels and segments to maximize profitability and to balance demand and supply, to create [inaudible] in the market. We delivered a strong financial profile, 20% revenue revenue CAGR over a decade, 60% plus gross profit margin, 30% plus adjusted EBIT [inaudible] and our fiscal '23 figures underscores this once again.

We are a unique business. We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Aragon: We are neither luxury north fashion footwear. But our business model has elements that are typical of the luxury industry.

Aragon: But our business model has elements that are typical of the luxury industry.

Aragon: that is a premium quality product, market [inaudible] and the high desirability of the brand, which altogether translate into a premium margin. Other than the luxury industry, which is primarily built on price and social status, Birkenstock is a true purpose and typecast brand, as such, we are beyond fashion. Our disciplined engineers distribution model drives consistent and predictable revenue growth by strategically allocating products across channels and segments to maximize profitability and to balance demand and supply, to create [inaudible] in the market. We delivered a strong financial profile, 20% revenue revenue CAGR over a decade, 60% plus gross profit margin, 30% plus adjusted EBIT [inaudible] and our fiscal '23 figures underscores this once again.

Aragon: Market cost of tea and the high is our ability of the brand, which altogether translate into a premium margin. Other than the luxury industry, which is primarily built on price and social status. <unk> stock is a true purpose and typecast brands. Such weird beyond fashion. Our disciplined engineers distribution model drives consistent and predictable revenue growth by strategically allocating products across channels and segments to maximize profitability and to balance demand and supply. To create Scott to teach the market. We deliver a strong financial profile. 20% revenue. Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: Other than the luxury industry, which is primarily built on price and social status. <unk> stock is a true purpose and typecast brands. Such weird beyond fashion. Our disciplined engineers distribution model drives consistent and predictable revenue growth by strategically allocating products across channels and segments to maximize profitability and to balance demand and supply. To create Scott to teach the market. We deliver a strong financial profile. 20% revenue. Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: <unk> stock is a true purpose and typecast brands. Such weird beyond fashion. Our disciplined engineers distribution model drives consistent and predictable revenue growth by strategically allocating products across channels and segments to maximize profitability and to balance demand and supply. To create Scott to teach the market. We deliver a strong financial profile. 20% revenue. Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: Such weird beyond fashion. Our disciplined engineers distribution model drives consistent and predictable revenue growth by strategically allocating products across channels and segments to maximize profitability and to balance demand and supply. To create Scott to teach the market. We deliver a strong financial profile. 20% revenue. Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: Our disciplined engineers distribution model drives consistent and predictable revenue growth by strategically allocating products across channels and segments to maximize profitability and to balance demand and supply. To create Scott to teach the market. We deliver a strong financial profile. 20% revenue. Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: To create Scott to teach the market. We deliver a strong financial profile. 20% revenue. Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: We deliver a strong financial profile. 20% revenue. Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: 20% revenue. Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: Over a decades 60. 60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

60% plus gross profit margin, 30% plus adjusted EBIT arm ups.

Aragon: Erik and Alexander will review our financial performance in more detail shortly. But here are a few highlights from fiscal '23. We are very pleased to announce that we delivered extraordinary revenue growth of 20% in fiscal '23, marking the best year in Birkenstock's history with revenues of $1.49 billion euros. Our fourth quarter contributed to that development with 22% growth. These numbers tie in with our great performance in the last decade, with a revenue CAGR of 20% and demonstrates the sustainability of our growth.

Eric and Alexandre revenue, our financial performance in more detail shortly. But yeah. Few highlights from fiscal 'twenty three. We are very pleased to announce that we delivered extraordinary revenue growth of 20% in fiscal 'twenty three. Marking the best year in <unk> history with revenues of $1 four 9 billion euros. Our fourth quarter contributed to that development with 22% growth. These numbers tie in with our great performance in the last decade, with a revenue CAGR of 20% and demonstrates the sustainability of our growth.

But yeah. Few highlights from fiscal 'twenty three. We are very pleased to announce that we delivered extraordinary revenue growth of 20% in fiscal 'twenty three. Marking the best year in <unk> history with revenues of $1 four 9 billion euros. Our fourth quarter contributed to that development with 22% growth. These numbers tie in with our great performance in the last decade, with a revenue CAGR of 20% and demonstrates the sustainability of our growth.

Aragon: Few highlights from fiscal 'twenty three. We are very pleased to announce that we delivered extraordinary revenue growth of 20% in fiscal 'twenty three. Marking the best year in <unk> history with revenues of $1 four 9 billion euros. Our fourth quarter contributed to that development with 22% growth. These numbers tie in with our great performance in the last decade, with a revenue CAGR of 20% and demonstrates the sustainability of our growth.

Aragon: We are very pleased to announce that we delivered extraordinary revenue growth of 20% in fiscal 'twenty three. Marking the best year in <unk> history with revenues of $1 four 9 billion euros. Our fourth quarter contributed to that development with 22% growth. These numbers tie in with our great performance in the last decade, with a revenue CAGR of 20% and demonstrates the sustainability of our growth.

Aragon: Marking the best year in <unk> history with revenues of $1 four 9 billion euros. Our fourth quarter contributed to that development with 22% growth. These numbers tie in with our great performance in the last decade, with a revenue CAGR of 20% and demonstrates the sustainability of our growth.

Aragon: Our fourth quarter contributed to that development with 22% growth. These numbers tie in with our great performance in the last decade, with a revenue CAGR of 20% and demonstrates the sustainability of our growth.

Aragon: These numbers tie in with our great performance in the last decade, with a revenue CAGR of 20% and demonstrates the sustainability of our growth.

Aragon: We are delivering all that in uncertain times and macroeconomic backdrops, which reflects our optimism in the future growth trajectory of the business. Our revenue development in fiscal '23 is driven by both unit growth of 6% and ASP increase of 14%. Compared to fiscal '22, our unit growth doubled from 3% to 6%. Our ASP growth was primarily driven by steering consumers to premium products with higher price points. This effect accounted for 50% of the ASP growth. The ASP is further driven by a favorable channel mix towards B to C and RSP increase. Both effects accounted for 25% of the ASP growth. We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a high consumer demand for Birkentock, resulting in a double digit revenue growth in all three segments in fiscal '23.

We are delivering all that in uncertain times and macroeconomic backdrops, which reflects our optimism in the future growth trajectory of the business. Our revenue development in fiscal '23 is driven by both unit growth of 6% and ASP increase of 14%. Compared to fiscal '22, our unit growth doubled from 3% to 6%.

Aragon: Our revenue development in fiscal 'twenty, three is driven by both unit growth of 6% and ASP increase of 14%. Compared to fiscal 'twenty, two our unit growth doubled from 3% to 6%. Our ASP growth was primarily driven by steering consumers to premium products with higher price points. This effect accounted for 50% of the ASP growth. The ESP is further driven by a favorable channel mix towards B to C and RSP increase. Both effects accounted for 25% of the ASP growth. We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a higher consumer demand for Britain stock, resulting in a double digit revenue growth in all three segments in fiscal 'twenty three.

Compared to fiscal 'twenty, two our unit growth doubled from 3% to 6%. Our ASP growth was primarily driven by steering consumers to premium products with higher price points. This effect accounted for 50% of the ASP growth. The ESP is further driven by a favorable channel mix towards B to C and RSP increase. Both effects accounted for 25% of the ASP growth. We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a higher consumer demand for Britain stock, resulting in a double digit revenue growth in all three segments in fiscal 'twenty three.

Our ASP growth was primarily driven by steering consumers to premium products with higher price points. This effect accounted for 50% of the ASP growth. The ASP is further driven by a favorable channel mix towards B to C and RSP increase. Both effects accounted for 25% of the ASP growth. We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a high consumer demand for Birkentock, resulting in a double digit revenue growth in all three segments in fiscal '23.

Aragon: Our ASP growth was primarily driven by steering consumers to premium products with higher price points. This effect accounted for 50% of the ASP growth. The ESP is further driven by a favorable channel mix towards B to C and RSP increase. Both effects accounted for 25% of the ASP growth. We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a higher consumer demand for Britain stock, resulting in a double digit revenue growth in all three segments in fiscal 'twenty three.

Aragon: This effect accounted for 50% of the ASP growth. The ESP is further driven by a favorable channel mix towards B to C and RSP increase. Both effects accounted for 25% of the ASP growth. We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a higher consumer demand for Britain stock, resulting in a double digit revenue growth in all three segments in fiscal 'twenty three.

Aragon: The ESP is further driven by a favorable channel mix towards B to C and RSP increase. Both effects accounted for 25% of the ASP growth. We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a higher consumer demand for Britain stock, resulting in a double digit revenue growth in all three segments in fiscal 'twenty three.

Aragon: Both effects accounted for 25% of the ASP growth. We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a higher consumer demand for Britain stock, resulting in a double digit revenue growth in all three segments in fiscal 'twenty three.

We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a high consumer demand for Birkentock, resulting in a double digit revenue growth in all three segments in fiscal '23.

Aragon: We achieved strong full price realization, which demonstrates our unique outlier precision and brand strength. Within each of our geographies, we saw a higher consumer demand for Britain stock, resulting in a double digit revenue growth in all three segments in fiscal 'twenty three.

Aragon: Within each of our geographies, we saw a higher consumer demand for Britain stock, resulting in a double digit revenue growth in all three segments in fiscal 'twenty three.

Aragon: Our two channels B to B and B to C grew double digits with B to C, especially outperforming and achieving a penetration of 14%. This demonstrates how broad base our revenue growth is. The same applies to the product perspective where most of our categories grew double digits. Fiscal '23 marked another year with industry leading margins. We achieved a gross profit margin of 62.1% and an adjusted EBITDA margin of 32.4%. At this time, I will hand, the call over to David and his team for reviewing the America performance.

Aragon: This demonstrates how broad based our revenue growth is. The same applies to the product perspective, where most of our categories grew double digits. Fiscal 'twenty three marked another year with industry leading margins. We achieved a gross profit margin of 62, 1%. And an adjusted EBIT margin of 32, 4%. At this time I will hand, the call over to David and his team for reviewing the America performance.

Aragon: The same applies to the product perspective, where most of our categories grew double digits. Fiscal 'twenty three marked another year with industry leading margins. We achieved a gross profit margin of 62, 1%. And an adjusted EBIT margin of 32, 4%. At this time I will hand, the call over to David and his team for reviewing the America performance.

Aragon: Fiscal 'twenty three marked another year with industry leading margins. We achieved a gross profit margin of 62, 1%. And an adjusted EBIT margin of 32, 4%. At this time I will hand, the call over to David and his team for reviewing the America performance.

Aragon: We achieved a gross profit margin of 62, 1%. And an adjusted EBIT margin of 32, 4%. At this time I will hand, the call over to David and his team for reviewing the America performance.

Aragon: And an adjusted EBIT margin of 32, 4%. At this time I will hand, the call over to David and his team for reviewing the America performance.

Speaker Change: At this time I will hand, the call over to David and his team for reviewing the America performance.

David Kahan: Thank you. In the Americas, we achieved a revenue growth of 20% in fiscal '23 making the region the largest contributor to overall revenue growth in 2023. Due to our brand strength, Birkenstock outperformed a generally flat market with retail partners who have seen overall challenges in both traffic and conversion. We know retailers are seeking to shift investments to the highest performing brands. This is an opportunity for us to increase our share and drive top line as we are one of the true must-have brands. And while we will take this opportunity to grow with partners, we will do so without compromising on our profit land product allocation strategy.

David: The Americas, we achieved a revenue growth of 20% in fiscal 'twenty, three making the reach and the largest contributor to overall revenue growth in 2023. Due to our brand strength Birkenstocks outperformed a generally flat market with retail partners, who have seen overall challenges in both traffic and conversion. No retailers are seeking to shift investments to the highest performing brands. This is an opportunity for us to increase our share and drive top line. As we are one of the true must have brands and while we will take this opportunity to grow with partners we will. Do so without compromising on our profit land product allocation strategy.

David: Due to our brand strength Birkenstocks outperformed a generally flat market with retail partners, who have seen overall challenges in both traffic and conversion. No retailers are seeking to shift investments to the highest performing brands. This is an opportunity for us to increase our share and drive top line. As we are one of the true must have brands and while we will take this opportunity to grow with partners we will. Do so without compromising on our profit land product allocation strategy.

David: No retailers are seeking to shift investments to the highest performing brands. This is an opportunity for us to increase our share and drive top line. As we are one of the true must have brands and while we will take this opportunity to grow with partners we will. Do so without compromising on our profit land product allocation strategy.

David: Do so without compromising on our profit land product allocation strategy.

David: We chose to remain very disciplined B to B channels so that we leave a significant unrequited demand and ensure scarcity across all retail partners with healthy inventories at retail. This approach led to B to B revenue growth of 16% in fiscal '23. Using our engineered distribution strategy, we have steered greater inventory to capture more of this consumer demand in our own B to C channels, where the profit per pair sold is the highest. B to C revenues grew in fiscal '23 by 26% on a level far above B to B, which leads to a further expansion of B to C penetration.

David: This approach led to be to be revenue growth of 16% in fiscal 'twenty three. Using our engineered distribution strategy, we have steered greater inventory to capture more of this consumer demand in our own DTC channels, where the profit FERC are sold is the highest. <unk> revenues grew in fiscal 'twenty, three by 26% on a level far above BBB, which leads to a further expansion of DTC penetration.

David: Using our engineered distribution strategy, we have steered greater inventory to capture more of this consumer demand in our own DTC channels, where the profit FERC are sold is the highest. <unk> revenues grew in fiscal 'twenty, three by 26% on a level far above BBB, which leads to a further expansion of DTC penetration.

David: <unk> revenues grew in fiscal 'twenty, three by 26% on a level far above BBB, which leads to a further expansion of DTC penetration.

David: During fiscal '23, we have also gained significant penetration in our closed toe shoe silhouettes, which supported the ASP increase. Closed sales performance is approximately three times higher in our own channels compared to B to B which shines a light on the growth potential not only in B to C but also in B to B.

David: On the growth potential not only in D C. But also in EBIT.

David: In our fourth quarter, revenues increased by 40%, primarily driven by a strong B to B quarter with 73% growth. We experienced strong consumer demand in spring and summer, which even gained further momentum in the back to school retail season. In Q4, we took advantage of the macroeconomic situation to execute what we term land grabs in white spaces, particularly shoes based on our heightened leverage in sandals and [inaudible] maintaining strong sell through and healthy inventory at retail.

In our fourth quarter, revenues increased by 40%, primarily driven by a strong B to B quarter with 73% growth. We experienced strong consumer demand in spring and summer, which even gained further momentum in the back to school retail season.

David: We experienced strong consumer demand and spring and summer, which even gained further momentum in the back to school retail season in. In Q4, we took advantage of the macroeconomic situation to execute what we term land grabs in white spaces, particularly shoes based on our heightened leverage in sandals and Claus maintaining strong sell through and healthy engine. Laurie at retail.

David: In Q4, we took advantage of the macroeconomic situation to execute what we term land grabs in white spaces, particularly shoes based on our heightened leverage in sandals and Claus maintaining strong sell through and healthy engine. Laurie at retail.

In Q4, we took advantage of the macroeconomic situation to execute what we term land grabs in white spaces, particularly shoes based on our heightened leverage in sandals and [inaudible] maintaining strong sell through and healthy inventory at retail.

David: Laurie at retail.

David: In addition, we made significant inroads in expanding our distribution so that the benefits of our I'll flip bed may be front and center in running specialty shops. This is a new initiative and brings the benefits of our flip bed directly where the most discerning consumers purchase their performance sports products and whereby this consumer can benefit from Birkenstock as a recovery item as part of their athletic lifestyle. The mantra we use is run Birkenstock, repeat and this helps us ensure the benefit of our flip bed leaves a growing revenue base to complement purchases made by some who may buy for fashion led reasons.

David: Their performance sports boats and whereby this consumer can benefit from broken stocks as a recovery item as part of their athletic lifestyle. The mantra, we use is run Bergen stop repeat and this helps us ensure the benefit of our flip that leaves a growing revenue base to complement purchases made by some who may buy for fashion led reasons. Please.

David: The mantra, we use is run Bergen stop repeat and this helps us ensure the benefit of our flip that leaves a growing revenue base to complement purchases made by some who may buy for fashion led reasons. Please.

Please note that by and large we do not extend distribution other than in some specific doors, where we believe an end user may be underserved. Here. run specialty, sport recovery is a good example. Let me now hand over the call to Nico to discuss Europe's performance.

David: Let me now hand over the call to Nico to discuss Europes performance.

Nico Bouyakhf: In our Europe segment, we have cemented our strong position in a challenging market environment, which is driven by consumer caution and increasing sales promotions due to material inventory levels. This strength is built on our disciplined engineered distribution model, [inaudible] team, resulting in strong overall sell throughs and superior full price realization. For Europe, fiscal '23 was a successful year in terms of business transformation with a significant volume shift from lower quality distribution into higher ASPs and higher profitability. We increased revenues by 18% with revenues significantly outgrowing units.

Nico: This strength is built on our disciplined engineered distribution model demand scar so team, resulting in strong overall sell throughs and superior for price realization. For your fiscal 'twenty three was a successful year in terms of business transformation with a significant volume shift from lower quality distribution into higher asps and higher profitability. We increased revenues by 18% with revenues significantly outgrowing units.

For your fiscal 'twenty three was a successful year in terms of business transformation with a significant volume shift from lower quality distribution into higher asps and higher profitability. We increased revenues by 18% with revenues significantly outgrowing units.

Nico: We increased revenues by 18% with revenues significantly outgrowing units.

Nico: Our B to B transformation in Europe is now completed, We have significantly increased our distribution control by converging further distributor markets of Belgium, Netherlands, and Luxembourg to own distribution and by further rationalizing our wholesale partner portfolio with a stronger focus on strategic partners and new distributions in the premium sneaker segment, both supporting our premium brand positioning. Our recently taken back markets, France, and Scandinavia, both operating as one distribution markets since fiscal '22 are well setup, both delivering over proportionate growth. These transformational efforts resulted in 15% revenue growth for B to B.

Nico: New distributions and the premium sneaker segment, both supporting our premium brand positioning. Our recently taken back markets, France, and Scandinavia, both operating as one distribution markets since fiscal 'twenty to well setup, both delivering over proportionate growth. These transformational efforts resulted in 15% revenue growth for each of these.

Nico: Our recently taken back markets, France, and Scandinavia, both operating as one distribution markets since fiscal 'twenty to well setup, both delivering over proportionate growth. These transformational efforts resulted in 15% revenue growth for each of these.

Nico: These transformational efforts resulted in 15% revenue growth for each of these.

Nico: Simultaneously, we saw great progress in our DTC transformation towards higher quality and stronger member centricity. In fiscal '23, we closed a substantial part of our legacy retail stores and took strategic investments in our membership and analytics capabilities. We experienced consistently strong consumer demand in our own channels with record breaking sales in both retail and online throughout the summer. Fiscal '23 DTC revenues increased by 24% significantly outperforming B to B and thus resulting in further DTC penetration. Fourth quarter revenues in Europe were up 5%. The single digit increase was impacted by shipment timing effects and B to B partner termination effects following our wholesale cleanup.

Nico: The fiscal 'twenty three we closed a substantial part of our legacy retail stores and took strategic investments in our membership and analytics capabilities. We experienced consistently strong consumer demand and our own channels with record breaking sales in both retail and online throughout the summer. Fiscal 'twenty three of DTC revenues increased by 24% significantly outperforming b to B and thus, resulting in further PTC penetration. Fourth quarter revenues in Europe were up 5% the single digit increase was impacted by shipment timing effects and beach elite partner termination effects. Following I'll also cleanup.

Nico: We experienced consistently strong consumer demand and our own channels with record breaking sales in both retail and online throughout the summer. Fiscal 'twenty three of DTC revenues increased by 24% significantly outperforming b to B and thus, resulting in further PTC penetration. Fourth quarter revenues in Europe were up 5% the single digit increase was impacted by shipment timing effects and beach elite partner termination effects. Following I'll also cleanup.

Nico: Fiscal 'twenty three of DTC revenues increased by 24% significantly outperforming b to B and thus, resulting in further PTC penetration. Fourth quarter revenues in Europe were up 5% the single digit increase was impacted by shipment timing effects and beach elite partner termination effects. Following I'll also cleanup.

Nico: Fourth quarter revenues in Europe were up 5% the single digit increase was impacted by shipment timing effects and beach elite partner termination effects. Following I'll also cleanup.

In fiscal '22, we experienced shipment delays in the first half of the year leading to an exceptional revenue level in the second half. This elevated sales level in Q4 of fiscal '22 has been debated for Q4 of fiscal '23. Furthermore, we phased out the biggest terminated Allstate partners in fiscal '23 which impacted Q4 '22 results. By kicking out these timing effects, revenues would have grown double digit in Q4 of fiscal '23. DTC revenue growth in Q4 was 20% slightly impacted by store closures in Europe following our transformation. And our cross store ship penetration in Q4 increased significantly. I'm handing over to Klaus for [inaudible] discussion.

Nico: This elevated sales level in Q4 of fiscal 'twenty two has been debated for Q4 of fiscal 'twenty three. Furthermore, we faced out the biggest terminated Allstate partners in fiscal 'twenty, three which impacted Q4 'twenty results. But kicking out these timing effects revenues would have grown double digit in Q4 of fiscal 'twenty three. DTC revenue growth in Q4 was 20% slightly impacted by store closures in Europe following our transformation. And our cross sell ship penetration in Q4 increased significantly.

Nico: Furthermore, we faced out the biggest terminated Allstate partners in fiscal 'twenty, three which impacted Q4 'twenty results. But kicking out these timing effects revenues would have grown double digit in Q4 of fiscal 'twenty three. DTC revenue growth in Q4 was 20% slightly impacted by store closures in Europe following our transformation. And our cross sell ship penetration in Q4 increased significantly.

Nico: But kicking out these timing effects revenues would have grown double digit in Q4 of fiscal 'twenty three. DTC revenue growth in Q4 was 20% slightly impacted by store closures in Europe following our transformation. And our cross sell ship penetration in Q4 increased significantly.

Nico: DTC revenue growth in Q4 was 20% slightly impacted by store closures in Europe following our transformation. And our cross sell ship penetration in Q4 increased significantly.

Nico: And our cross sell ship penetration in Q4 increased significantly.

Speaker Change: Our [inaudible] showed the highest growth rates of all segments in the fiscal year '23 by 27%. [inaudible] entered into the acceleration mode after a successful distribution cleanup. All over the region, we are with teams on grounds to drive future revenues. Within the channels, B to C is the growth backbone in [inaudible].

Our [inaudible] showed the highest growth rates of all segments in the fiscal year '23 by 27%. [inaudible] entered into the acceleration mode after a successful distribution cleanup. All over the region, we are with teams on grounds to drive future revenues.

Klaus Schwab: Oh Wow classic meant showed the highest growth rates of all segments into fiscal year 'twenty three with 27%. <unk> entered into the acceleration mode. After a successful distribution cleanup. All over the region, we are with teams on grounds to drive future revenues. Within the channels you just see this as the growth backbone in asthma.

Klaus Schwab: <unk> entered into the acceleration mode. After a successful distribution cleanup. All over the region, we are with teams on grounds to drive future revenues. Within the channels you just see this as the growth backbone in asthma.

Klaus Schwab: All over the region, we are with teams on grounds to drive future revenues. Within the channels you just see this as the growth backbone in asthma.

Within the channels, B to C is the growth backbone in [inaudible]. We managed to double the B to C revenues in fiscal year '23 by capitalizing the growing demand, having workshops in different countries and opening retail stores in India and Japan.

Klaus Schwab: Within the channels you just see this as the growth backbone in asthma.

Klaus Schwab: We managed to double the B to C revenues in fiscal year '23 by capitalizing the growing demand, having workshops in different countries and opening retail stores in India and Japan. We managed to implement premium distribution through partner stores all over the region. We grew in underpenetrated countries like greater China marketplaces more than 60%.

We managed to double the B to C revenues in fiscal year '23 by capitalizing the growing demand, having workshops in different countries and opening retail stores in India and Japan.

Klaus Schwab: We managed to implement premium distribution through partner stores all over the region. We grew in Underpenetrated countries like greater China marketplaces more than 60%.

We managed to implement premium distribution through partner stores all over the region. We grew in underpenetrated countries like greater China marketplaces more than 60%.

Klaus Schwab: India digital grew more than 70% and Japan digital more than 50%. So let me remind you, at this stage that our B to C expansion is not at the expense of [inaudible]. It is all incremental. Despite distribution cleanup, B to B grew double digits at 12%. We focused on mono branded partner store openings and upscaled customers to more premium products by following our global segmentation strategy of placing the right products in the right places or adding exclusive products to our own channel. In greater China, we recently appointed Tiffany Wu as a managing director to drive brand equity and sales in the region. With this new appointment, we aim to further strengthen our expanding footprint in the most dynamic [inaudible] region and the growth region with the largest untapped white space potential for the company alongside India and Japan.

India digital grew more than 70% and Japan digital more than 50%. So let me remind you, at this stage that our B to C expansion is not at the expense of [inaudible]. It is all incremental. Despite distribution cleanup, B to B grew double digits at 12%. We focused on mono branded partner store openings and upscaled customers to more premium products by following our global segmentation strategy of placing the right products in the right places or adding exclusive products to our own channel.

Klaus Schwab: Despite distribution cleanup <unk> grew double digits at 12%. We focused on mono branded partner store openings. Upscale customers to more premium products by following our global segmentation strategy of placing the right products in the right places or adding exclusive products to our own channel. In greater China, we recently appointed differently as a managing director to drive brand equity and sales in the region with this new appointment we aim to further strengthen our expanding footprint in the most dynamic up my region and the growth region with the largest untapped white space potential.

Klaus Schwab: We focused on mono branded partner store openings. Upscale customers to more premium products by following our global segmentation strategy of placing the right products in the right places or adding exclusive products to our own channel. In greater China, we recently appointed differently as a managing director to drive brand equity and sales in the region with this new appointment we aim to further strengthen our expanding footprint in the most dynamic up my region and the growth region with the largest untapped white space potential.

Klaus Schwab: Upscale customers to more premium products by following our global segmentation strategy of placing the right products in the right places or adding exclusive products to our own channel. In greater China, we recently appointed differently as a managing director to drive brand equity and sales in the region with this new appointment we aim to further strengthen our expanding footprint in the most dynamic up my region and the growth region with the largest untapped white space potential.

In greater China, we recently appointed Tiffany Wu as a managing director to drive brand equity and sales in the region. With this new appointment, we aim to further strengthen our expanding footprint in the most dynamic [inaudible] region and the growth region with the largest untapped white space potential for the company alongside India and Japan. So having said that, let me hand over to Erik who will review the financial figures in detail.

Klaus Schwab: In greater China, we recently appointed differently as a managing director to drive brand equity and sales in the region with this new appointment we aim to further strengthen our expanding footprint in the most dynamic up my region and the growth region with the largest untapped white space potential.

Erik Massmann: As outlined earlier, we achieved remarkable revenue growth of 20% in fiscal 2023. Our fourth quarter tied in with this performance and came in with growth of 22%. Gross profit margin for fiscal '23 was 62.1%, up 180 basis points compared to fiscal '22.

Speaker Change: Having said that let me hand over to Eric who will review the financial figures in detail. As outlined earlier, we achieved remarkable revenue growth of <unk>. 90% in fiscal 2023. Our fourth quarter tied in with this performance and came in with growth of 22%. Gross profit margin for fiscal 'twenty three. Was 62, 1%. 180 basis points compared to fiscal 'twenty two.

Eric: As outlined earlier, we achieved remarkable revenue growth of <unk>. 90% in fiscal 2023. Our fourth quarter tied in with this performance and came in with growth of 22%. Gross profit margin for fiscal 'twenty three. Was 62, 1%. 180 basis points compared to fiscal 'twenty two.

Eric: 90% in fiscal 2023. Our fourth quarter tied in with this performance and came in with growth of 22%. Gross profit margin for fiscal 'twenty three. Was 62, 1%. 180 basis points compared to fiscal 'twenty two.

Eric: Our fourth quarter tied in with this performance and came in with growth of 22%. Gross profit margin for fiscal 'twenty three. Was 62, 1%. 180 basis points compared to fiscal 'twenty two.

Eric: Gross profit margin for fiscal 'twenty three. Was 62, 1%. 180 basis points compared to fiscal 'twenty two.

Eric: Was 62, 1%. 180 basis points compared to fiscal 'twenty two.

Eric: 180 basis points compared to fiscal 'twenty two.

Eric: Let me remind you that last year's number was unfavorably impacted by $24.4 million euros of expense, reflecting the effect of applying the acquisition methods while the accounting for the transaction in '21 to inventory valuation and subsequent impact on cost of sales. When adjusting this fiscal '22 effect. Gross profit margin slightly decreased 20 basis points from 62.3% to 62.1%. The decrease was driven by inflationary cost for raw materials and labor. In fiscal '22, we took an early stage price increase ahead of the anticipated cost inflation while cost of sales inflation mainly [inaudible] in fiscal '23.

Eric: By $24 4 million euros of expense, reflecting the effect of applying the acquisition methods. While the accounting for the transaction in 'twenty, one to inventory valuation. Subsequent impact on cost of sales. When adjusting this fiscal 'twenty two effect. Gross profit margin slightly decreased 20 basis points from 62, 3% to. It was 62, 1%. The decrease was driven by inflationary cost for raw materials and labor. In fiscal 'twenty two. We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: While the accounting for the transaction in 'twenty, one to inventory valuation. Subsequent impact on cost of sales. When adjusting this fiscal 'twenty two effect. Gross profit margin slightly decreased 20 basis points from 62, 3% to. It was 62, 1%. The decrease was driven by inflationary cost for raw materials and labor. In fiscal 'twenty two. We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: Subsequent impact on cost of sales. When adjusting this fiscal 'twenty two effect. Gross profit margin slightly decreased 20 basis points from 62, 3% to. It was 62, 1%. The decrease was driven by inflationary cost for raw materials and labor. In fiscal 'twenty two. We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: When adjusting this fiscal 'twenty two effect. Gross profit margin slightly decreased 20 basis points from 62, 3% to. It was 62, 1%. The decrease was driven by inflationary cost for raw materials and labor. In fiscal 'twenty two. We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: Gross profit margin slightly decreased 20 basis points from 62, 3% to. It was 62, 1%. The decrease was driven by inflationary cost for raw materials and labor. In fiscal 'twenty two. We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: It was 62, 1%. The decrease was driven by inflationary cost for raw materials and labor. In fiscal 'twenty two. We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: The decrease was driven by inflationary cost for raw materials and labor. In fiscal 'twenty two. We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: In fiscal 'twenty two. We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: We took it early stage price increase ahead of the anticipated cost inflation. Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: Cost of sales inflation, mainly at us in fiscal 'twenty three.

Eric: However, the unfavorable cost of sales inflation effects in gross margin was largely offset by favorable effects from an increased B to C penetration and further sales price increases. Gross profit margin for the fourth quarter increased by 140 basis points from 64% to 65.4%. Due to a strong ASP increase, following an improved product mix and a slightly higher B to C penetration, adjusted selling and distribution expenses represented 29.8% of revenues in fiscal '23, up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of B to C revenues and cost inflation. Adjusted general administration expenses represented 5.4% of revenues in fiscal '23, down 70 basis points compared to prior year providing operational leverage.

Eric: Largely offset by favorable effects. From an increased DTC penetration. And further sales price increases. Gross profit margin for the fourth quarter increased by 140 basis points. From 64%. So 65, 4%. Due to a strong ASP increase. Following an improved product mix and to a slightly higher due to see penetration. Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: From an increased DTC penetration. And further sales price increases. Gross profit margin for the fourth quarter increased by 140 basis points. From 64%. So 65, 4%. Due to a strong ASP increase. Following an improved product mix and to a slightly higher due to see penetration. Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: And further sales price increases. Gross profit margin for the fourth quarter increased by 140 basis points. From 64%. So 65, 4%. Due to a strong ASP increase. Following an improved product mix and to a slightly higher due to see penetration. Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: Gross profit margin for the fourth quarter increased by 140 basis points. From 64%. So 65, 4%. Due to a strong ASP increase. Following an improved product mix and to a slightly higher due to see penetration. Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: From 64%. So 65, 4%. Due to a strong ASP increase. Following an improved product mix and to a slightly higher due to see penetration. Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: So 65, 4%. Due to a strong ASP increase. Following an improved product mix and to a slightly higher due to see penetration. Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: Due to a strong ASP increase. Following an improved product mix and to a slightly higher due to see penetration. Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: Following an improved product mix and to a slightly higher due to see penetration. Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three. Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: Up 190 basis points compared to prior year. The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: The increase was primarily driven by higher cost in relation to the above average growth of deep sea revenues and cost inflation. And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: And just the general administration expenses represent just five 4% of revenues in fiscal 'twenty three.

Eric: Our fiscal '23 adjusted EBITDA of 483 million euros was up 11% compared with fiscal '22. With 32.4%, we again achieved top tier EBITDA margins. The margin decline of 260 basis points compared to prior year was driven by inflationary headwinds, which impacted us in fiscal '23 while we increased sales prices primarily in fiscal '22. Thus last year's margin was elevated by this favorable pricing effect. Our fourth quarter adjusted EBITDA was 96 million euros, slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects from currency translation due to the weaker US dollar compared to fourth quarter of fiscal '22. Our effective tax rate for fiscal '23 was 51.2% compared to 25.3% for the prior year.

Our fiscal '23 adjusted EBITDA of 483 million euros was up 11% compared with fiscal '22. With 32.4%, we again achieved top tier EBITDA margins. The margin decline of 260 basis points compared to prior year was driven by inflationary headwinds, which impacted us in fiscal '23 while we increased sales prices primarily in fiscal '22. Thus last year's margin was elevated by this favorable pricing effect. Our fourth quarter adjusted EBITDA was 96 million euros, slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects from currency translation due to the weaker US dollar compared to fourth quarter of fiscal '22.

Eric: Our fiscal 'twenty three adjusted EBITA. 483 million euros was up 11% compared with fiscal 'twenty two. With 32, 4%, we again achieved top tier EBITDA margins. The margin decline of 260 basis points compared to prior year was driven by inflationary headwinds, which impacted us in fiscal 'twenty three. Why are they increased sales prices primarily in fiscal 'twenty two. Thus last year's margin was elevated by the favorable pricing effect. Our fourth quarter adjusted EBITDA. Was 96 million euros slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

483 million euros was up 11% compared with fiscal 'twenty two. With 32, 4%, we again achieved top tier EBITDA margins. The margin decline of 260 basis points compared to prior year was driven by inflationary headwinds, which impacted us in fiscal 'twenty three. Why are they increased sales prices primarily in fiscal 'twenty two. Thus last year's margin was elevated by the favorable pricing effect. Our fourth quarter adjusted EBITDA. Was 96 million euros slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: With 32, 4%, we again achieved top tier EBITDA margins. The margin decline of 260 basis points compared to prior year was driven by inflationary headwinds, which impacted us in fiscal 'twenty three. Why are they increased sales prices primarily in fiscal 'twenty two. Thus last year's margin was elevated by the favorable pricing effect. Our fourth quarter adjusted EBITDA. Was 96 million euros slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

The margin decline of 260 basis points compared to prior year was driven by inflationary headwinds, which impacted us in fiscal 'twenty three. Why are they increased sales prices primarily in fiscal 'twenty two. Thus last year's margin was elevated by the favorable pricing effect. Our fourth quarter adjusted EBITDA. Was 96 million euros slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: Why are they increased sales prices primarily in fiscal 'twenty two. Thus last year's margin was elevated by the favorable pricing effect. Our fourth quarter adjusted EBITDA. Was 96 million euros slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: Thus last year's margin was elevated by the favorable pricing effect. Our fourth quarter adjusted EBITDA. Was 96 million euros slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Our fourth quarter adjusted EBITDA was 96 million euros, slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects from currency translation due to the weaker US dollar compared to fourth quarter of fiscal '22.

Eric: Our fourth quarter adjusted EBITDA. Was 96 million euros slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: Was 96 million euros slightly down by 6%. The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: The moderate decline was primarily driven by cost inflation and negative FX effects. Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: Currency translation. To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: To the weaker U S dollar copay. Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: Compared to fourth quarter of fiscal 'twenty two. Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: Our effective tax rate for <unk>. If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Our effective tax rate for fiscal '23 was 51.2% compared to 25.3% for the prior year. This increase mainly relates to one-time, non-cash, share based compensation expenses that are treated as non deductibles. The increase also includes one-time IPO costs, resulting in tax offers for which no deferred taxes are recognized. Adjusting for the tax rate impacts of the just mentioned extra ordinary expenses of $65 million, resulting from non-cash, share based compensation and 34 million euros resulting from IPO costs would lead to a normalized effective tax rate of 27.9%. These results accumulated and pro forma fully diluted adjusted earnings per share of euro 1.10 in fiscal '23 compared to euro 0.93 the prior year representing growth of 19%. Fourth quarter pro forma fully diluted adjusted earnings per share was euro 0.13. These earnings per share metrics are calculated based on a total number of outstanding shares of $187.8 million representing the post IPO number. With that, I will hand over to Alexander.

Eric: If it gets rented three plus 51, 2%. Compared to a 25, 3% for the prior year.

Eric: Compared to a 25, 3% for the prior year.

Eric: This increase mainly relates to one-time, non-cash, share based compensation expenses that are treated as non deductibles. The increase also includes one-time IPO costs, resulting in tax offers for which no deferred taxes are recognized. Adjusting for the tax rate impacts of the just mentioned extra ordinary expenses of $65 million, resulting from non-cash, share based compensation and 34 million euros resulting from IPO costs would lead to a normalized effective tax rate of 27.9%. These results accumulated and pro forma fully diluted adjusted earnings per share of euro 1.10 in fiscal '23 compared to euro 0.93 the prior year representing growth of 19%. Fourth quarter pro forma fully diluted adjusted earnings per share was euro 0.13. These earnings per share metrics are calculated based on a total number of outstanding shares of $187.8 million representing the post IPO number. With that, I will hand over to Alexander.

The increase also includes one time IPO costs, resulting in Texas offers for which no deferred Texas are recognized. Adjusting for the tax rate impacts of the just mentioned extra ordinary expenses of $65 million, resulting from non cash share based compensation at 34 million euros, resulting from IPO costs would lead to a normalized effective tax rate of 27, 9%. These results accumulated and pro forma fully diluted adjusted earnings per share of Euro of $1 10 in fiscal 'twenty three. Pat to Euro zero point 93 prior year. Presenting growth of 19%. Fourth quarter pro forma fully diluted adjusted earnings per share. Zero 0.1 Street. These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million. Representing the post IPO remember.

Eric: Adjusting for the tax rate impacts of the just mentioned extra ordinary expenses of $65 million, resulting from non cash share based compensation at 34 million euros, resulting from IPO costs would lead to a normalized effective tax rate of 27, 9%. These results accumulated and pro forma fully diluted adjusted earnings per share of Euro of $1 10 in fiscal 'twenty three. Pat to Euro zero point 93 prior year. Presenting growth of 19%. Fourth quarter pro forma fully diluted adjusted earnings per share. Zero 0.1 Street. These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million. Representing the post IPO remember.

Eric: These results accumulated and pro forma fully diluted adjusted earnings per share of Euro of $1 10 in fiscal 'twenty three. Pat to Euro zero point 93 prior year. Presenting growth of 19%. Fourth quarter pro forma fully diluted adjusted earnings per share. Zero 0.1 Street. These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million. Representing the post IPO remember.

Eric: Pat to Euro zero point 93 prior year. Presenting growth of 19%. Fourth quarter pro forma fully diluted adjusted earnings per share. Zero 0.1 Street. These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million. Representing the post IPO remember.

Fourth quarter pro forma fully diluted adjusted earnings per share was euro 0.13. These earnings per share metrics are calculated based on a total number of outstanding shares of $187.8 million representing the post IPO number. With that, I will hand over to Alexander.

Eric: Presenting growth of 19%. Fourth quarter pro forma fully diluted adjusted earnings per share. Zero 0.1 Street. These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million. Representing the post IPO remember.

Eric: Fourth quarter pro forma fully diluted adjusted earnings per share. Zero 0.1 Street. These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million. Representing the post IPO remember.

Eric: Zero 0.1 Street. These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million. Representing the post IPO remember.

Eric: These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million. Representing the post IPO remember.

Representing the post IPO remember.

Alexander Hoff: Birkenstock is a cash flow generating business, which provides us optionality in terms of capital allocation. In fiscal '23, we achieved cash flow from operating activities of 359 million, up 53% compared to pricing. The increase is primarily driven by the strong operational performance as well as the lower inventory increase compared to fiscal '22. Inventory increased 11%, which is approximately half the revenue growth rates providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

Alison: Brooklyn stock as a cash flow generating business, which provides us optionality. Capital allocation. In fiscal 'twenty as we achieved cash flow from operating activities. $59 million. 53% compared to pricing. The increase is primarily driven by the strong operational performance as well as the lower inventory increase momentum in fiscal 'twenty two. Inventory increased 11%, which is approximately half the revenue growth rates providing. Providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

Alison: Capital allocation. In fiscal 'twenty as we achieved cash flow from operating activities. $59 million. 53% compared to pricing. The increase is primarily driven by the strong operational performance as well as the lower inventory increase momentum in fiscal 'twenty two. Inventory increased 11%, which is approximately half the revenue growth rates providing. Providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

Alison: In fiscal 'twenty as we achieved cash flow from operating activities. $59 million. 53% compared to pricing. The increase is primarily driven by the strong operational performance as well as the lower inventory increase momentum in fiscal 'twenty two. Inventory increased 11%, which is approximately half the revenue growth rates providing. Providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

Sales price increases.

Alison: $59 million. 53% compared to pricing. The increase is primarily driven by the strong operational performance as well as the lower inventory increase momentum in fiscal 'twenty two. Inventory increased 11%, which is approximately half the revenue growth rates providing. Providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

Gross profit margin of the bulk water increased by 140 basis points.

Alison: 53% compared to pricing. The increase is primarily driven by the strong operational performance as well as the lower inventory increase momentum in fiscal 'twenty two. Inventory increased 11%, which is approximately half the revenue growth rates providing. Providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

Alison: The increase is primarily driven by the strong operational performance as well as the lower inventory increase momentum in fiscal 'twenty two. Inventory increased 11%, which is approximately half the revenue growth rates providing. Providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

From 64%.

The 65, 4%.

You too a strong ASP increase.

Following an improved product mix and to a slightly higher due to seat penetration.

Alison: Inventory increased 11%, which is approximately half the revenue growth rates providing. Providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

Adjusted selling and distribution expenses represented 29, 8% of revenues in fiscal 'twenty three.

Alison: Providing us with improved inventory through revenue. We are extremely focused on inventory health, especially as we grow.

Alexander Hoff: We are extremely focused on inventory health, especially as we grow.

Alison: We are extremely focused on inventory health, especially as we grow.

A 190 basis points compared to prior year.

Alison: Let me remind you at this stage that we hold approximately 100 million euros of raw materials and semi finished goods as we have the production in house. Within finished goods, the largest part relates to core and non seasonal products which we sell for many years and decades. The majority of finished goods was already contracted or allocated against customer orders. Accordingly risks for allowances are low while the inventory is a flexibility to [inaudible] path towards increase in demand and to generate additional sales and gain market share. Net cash flow [inaudible] activities was 101 million euros, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure [inaudible].

Let me remind you at this stage that we hold approximately 100 million euros of raw materials and semi finished goods as we have the production in house. Within finished goods, the largest part relates to core and non seasonal products which we sell for many years and decades. The majority of finished goods was already contracted or allocated against customer orders. Accordingly risks for allowances are low while the inventory is a flexibility to [inaudible] path towards increase in demand and to generate additional sales and gain market share. Net cash flow [inaudible] activities was 101 million euros, primarily driven by the production capacity expansion.

The increase was primarily driven by higher costs in relation to the above average growth of CPUC revenues and corporate relations.

Alison: All materials and semi finished goods as we ask the production in house. Within finished goods the largest part relates to core and non seasonal products. Which we sell for many years and decades. The majority of our finished goods was already contracted are allocated against customer lives. Accordingly risks for allowance with a low wildly. While the inventory is a flexibility to react path towards increase in demand. And to generate additional sales and gain market share. Net cash flow boosted vesting activities was 100 beds and 1 billion, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

Adjusted General and administration expenses represented five 4% of revenues in fiscal 'twenty three.

Alison: Within finished goods the largest part relates to core and non seasonal products. Which we sell for many years and decades. The majority of our finished goods was already contracted are allocated against customer lives. Accordingly risks for allowance with a low wildly. While the inventory is a flexibility to react path towards increase in demand. And to generate additional sales and gain market share. Net cash flow boosted vesting activities was 100 beds and 1 billion, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

70 basis points compared to prior yet providing operational leverage.

Alison: Which we sell for many years and decades. The majority of our finished goods was already contracted are allocated against customer lives. Accordingly risks for allowance with a low wildly. While the inventory is a flexibility to react path towards increase in demand. And to generate additional sales and gain market share. Net cash flow boosted vesting activities was 100 beds and 1 billion, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

Alison: The majority of our finished goods was already contracted are allocated against customer lives. Accordingly risks for allowance with a low wildly. While the inventory is a flexibility to react path towards increase in demand. And to generate additional sales and gain market share. Net cash flow boosted vesting activities was 100 beds and 1 billion, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

Our fiscal 'twenty three adjusted EBITDA.

483 million euros was up 11% compared with fiscal 'twenty two.

Alison: Accordingly risks for allowance with a low wildly. While the inventory is a flexibility to react path towards increase in demand. And to generate additional sales and gain market share. Net cash flow boosted vesting activities was 100 beds and 1 billion, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

While the inventory is a flexibility to react path towards increase in demand. And to generate additional sales and gain market share. Net cash flow boosted vesting activities was 100 beds and 1 billion, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

With 32, 4%, we again achieved top tier EBITDA margins.

Alison: And to generate additional sales and gain market share. Net cash flow boosted vesting activities was 100 beds and 1 billion, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

The margin decline of 260 basis points compared to prior year was driven by inflationary headwinds, which impacted us in fiscal 'twenty three.

Alison: Net cash flow boosted vesting activities was 100 beds and 1 billion, primarily driven by the production capacity expansion. Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

Why are the increased sales prices primarily in fiscal 'twenty two.

Our strong cash flow generation allowed us to completely pay for that capital expenditure [inaudible]. In addition, we repaid loans and borrowings of $63 million in fiscal '23 while increasing our cash position. As announced in early November 2023, we continued our deleveraging process [inaudible] and utilized the net proceeds together with cash on hand to repay existing debt. We have already repaid $415 million of the US dollar term loan B 100 million euro [inaudible] the first quarter of fiscal '24 which reduced leverage to below 2.5 post IPO.

Alison: Our strong cash flow generation allowed us to completely pay for that capital expenditure almost awkward.

Thus locking the margin was elevated by the favorable pricing effect.

Our fourth quarter adjusted EBITDA.

Alison: In addition, we repaid loans and borrowings of $63 million in fiscal '23 while increasing our cash position. As announced in early November 2023, we continued our deleveraging process [inaudible] and utilized the net proceeds together with cash on hand to repay existing debt. We have already repaid $415 million of the US dollar term loan B 100 million euro [inaudible] the first quarter of fiscal '24 which reduced leverage to below 2.5 post IPO.

With 96 million euros slightly down by 6%.

Alison: While increasing our cash position. As announced in early November 2023. We continue our deleveraging process. Oh and utilized the net proceeds together with cash on hand. We paid existing debt. We have already repaid $415 million of the U S dollar term loan b. <unk> 100 billion euro of the blend ethanol into the first quarter of <unk> Paul. With reduced leverage to below two times slide post IPO.

The moderate decline was primarily driven by cost inflation and negative FX effects.

Alison: As announced in early November 2023. We continue our deleveraging process. Oh and utilized the net proceeds together with cash on hand. We paid existing debt. We have already repaid $415 million of the U S dollar term loan b. <unk> 100 billion euro of the blend ethanol into the first quarter of <unk> Paul. With reduced leverage to below two times slide post IPO.

Currency translation due to the weaker U S dollar.

Alison: We continue our deleveraging process. Oh and utilized the net proceeds together with cash on hand. We paid existing debt. We have already repaid $415 million of the U S dollar term loan b. <unk> 100 billion euro of the blend ethanol into the first quarter of <unk> Paul. With reduced leverage to below two times slide post IPO.

Alison: Oh and utilized the net proceeds together with cash on hand. We paid existing debt. We have already repaid $415 million of the U S dollar term loan b. <unk> 100 billion euro of the blend ethanol into the first quarter of <unk> Paul. With reduced leverage to below two times slide post IPO.

Compared to fourth quarter of fiscal 'twenty two.

Our effective tax rate.

Alison: We paid existing debt. We have already repaid $415 million of the U S dollar term loan b. <unk> 100 billion euro of the blend ethanol into the first quarter of <unk> Paul. With reduced leverage to below two times slide post IPO.

Fiscal 'twenty three of 51, 2%.

Alison: We have already repaid $415 million of the U S dollar term loan b. <unk> 100 billion euro of the blend ethanol into the first quarter of <unk> Paul. With reduced leverage to below two times slide post IPO.

Compared to a 25, 3% full of prior year.

Alison: <unk> 100 billion euro of the blend ethanol into the first quarter of <unk> Paul. With reduced leverage to below two times slide post IPO.

This increase mainly relates to onetime noncash share based compensation expenses that are treated as non deductible.

Alison: With reduced leverage to below two times slide post IPO.

The increase also includes one time IPO costs, resulting in Texas losses for which no deferred Texas are recognized.

Alison: Now turning to the future. We will provide guidance on a full year basis, rather than quarterly reflecting the way we steer our business towards long term success. For fiscal '24, we expect revenue to be in the range of 1.74 billion and 1.76 billion euros on a constant currency basis. This range represents growth of 17-18% relative to fiscal '23 with all pumps and channels contributing to that growth. We continue to see strong consumer demand

Now turning to the future. We will provide guidance on a full year basis, rather than quarterly reflecting the way we steer our business towards long term success. For fiscal '24, we expect revenue to be in the range of 1.74 billion and 1.76 billion euros on a constant currency basis. This range represents growth of 17-18% relative to fiscal '23 with all pumps and channels contributing to that growth.

Alison: We will provide guidance on a full year basis, rather than quarterly. Reflecting the wages via our business towards long term success. For fiscal 'twenty four we expect revenue to be in the range of 1.74 billion at 176 billion Bureau on a constant counts. This range represents growth of 17%, 18% relative to fiscal 'twenty three. All second pumps and channels contributing to that growth. We continue to see strong consumer demand.

Adjusting for the tax rate impacts of the just mentioned extra ordinary expenses of $65 million, resulting from non cash share based compensation and 34 million euros, resulting from IPO costs would lead to a normalized effective tax rate of 27, 9%.

Alison: Reflecting the wages via our business towards long term success. For fiscal 'twenty four we expect revenue to be in the range of 1.74 billion at 176 billion Bureau on a constant counts. This range represents growth of 17%, 18% relative to fiscal 'twenty three. All second pumps and channels contributing to that growth. We continue to see strong consumer demand.

Alison: For fiscal 'twenty four we expect revenue to be in the range of 1.74 billion at 176 billion Bureau on a constant counts. This range represents growth of 17%, 18% relative to fiscal 'twenty three. All second pumps and channels contributing to that growth. We continue to see strong consumer demand.

Alison: This range represents growth of 17%, 18% relative to fiscal 'twenty three. All second pumps and channels contributing to that growth. We continue to see strong consumer demand.

These results accumulated and pro forma fully diluted adjusted earnings per share of Euro of $1 10 in fiscal 'twenty three.

All second pumps and channels contributing to that growth. We continue to see strong consumer demand.

Compared to Euro zero point 93 with triad yet.

We continue to see strong consumer demand [inaudible] that sort of range, which is better than internal expectations at the time of the IPO. We expect adjusted EBITDA margin to be approximately 30% in fiscal '24 resulting in adjusted EBITDA between 522 and 530 million euros on a constant currency basis based on the earlier mentioned revenue guidance. With the production starts on our new [inaudible] in January '23, we are very happy [inaudible]. We are on track with [inaudible] projects in time. The added capacity will help us to fulfill future demands and we are on schedule to realize the benefits of this capacity expansion later in fiscal '24 and the upcoming years.

Alison: We continue to see strong consumer demand.

We are presenting growth of 19%.

Alison: [inaudible] that sort of range, which is better than internal expectations at the time of the IPO. We expect adjusted EBITDA margin to be approximately 30% in fiscal '24 resulting in adjusted EBITDA between 522 and 530 million euros on a constant currency basis based on the earlier mentioned revenue guidance. With the production starts on our new [inaudible] in January '23, we are very happy [inaudible]. We are on track with [inaudible] projects in time. The added capacity will help us to fulfill future demands and we are on schedule to realize the benefits of this capacity expansion later in fiscal '24 and the upcoming years.

Fourth quarter pro forma fully diluted adjusted earnings per share.

0.13.

Alison: We expect adjusted EBITDA margin to be approximately 30% statistical specifics fall, resulting in adjusted EBITDA between 500 intervention development. At 513 zero sometimes. It's. Based on the earlier mentioned revenue guidance. With the production stops along with factory and possible September three. We are very happy. Jacob and Nepal stab of all capacity. We are on track looking project built effectively on projects in time. The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

These on a per share metrics are calculated based on a total number of outstanding shares of $187 8 million.

Representing the post IPO remember.

Alison: At 513 zero sometimes. It's. Based on the earlier mentioned revenue guidance. With the production stops along with factory and possible September three. We are very happy. Jacob and Nepal stab of all capacity. We are on track looking project built effectively on projects in time. The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

With that I will hand over to Alison.

Alison: It's. Based on the earlier mentioned revenue guidance. With the production stops along with factory and possible September three. We are very happy. Jacob and Nepal stab of all capacity. We are on track looking project built effectively on projects in time. The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

Alison: Based on the earlier mentioned revenue guidance. With the production stops along with factory and possible September three. We are very happy. Jacob and Nepal stab of all capacity. We are on track looking project built effectively on projects in time. The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

Alison: Growth in stock and the cash flow generating business, which provide us optionality jobs on capital allocation.

Alison: With the production stops along with factory and possible September three. We are very happy. Jacob and Nepal stab of all capacity. We are on track looking project built effectively on projects in time. The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

Alison: In fiscal <unk>, we achieved cash flow from operating activities, we added $59 million.

We are very happy. Jacob and Nepal stab of all capacity. We are on track looking project built effectively on projects in time. The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

Alison: Jacob and Nepal stab of all capacity. We are on track looking project built effectively on projects in time. The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

Alison: We are on track looking project built effectively on projects in time. The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

Alison: 53% compared to PRASM.

Alison: The increase is primarily driven by the strong operational performance as well as a lower inventory increase for example in fiscal 'twenty two.

Alison: The added capacity will help us to fulfill future demands and. And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

Alison: And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

Alison: Inventory increased 11%, which is approximately half the revenue growth rates provide.

Alison: In the current year, we expect modest headwinds to adjusted EBITDA margins compared to fiscal '23 due to plans to ramp up costs and then the initial unmet absorption up. This impact is consistent with what we communicated through the IPO of course. Long term, we expect an adjusted EBITDA margin with slight variations based on our investments. Our capital allocation priorities are first to invest in the business then second to balance deleverage. We expect to invest approximately 150 million euros of capital expenditure in fiscal '24, primarily relating to our ongoing production capacity expansion [inaudible] and our retail stores.

Alison: Providing out from improved inventory through revenue.

Alison: In the current year, we expect modest headwinds to adjusted EBITDA margins compared to what's been peak speeds due to plant ramp up costs and then the initial unmet absorption up. This is consistent with what we communicated. Oh of course. Long term, we expect an adjusted EBITDA margin. That's also geez, it's slight variations based on our investments. Our capital location priorities are first to invest in the business. Tibetans deleverage. We expect to invest approximately 150 million euros of capital expenditure just contribute to all. Primarily relating to ongoing production capacity expansion, maybe a little bit.

We asked <unk> focused on inventory health, especially as we grow.

Speaker Change: Let me remind you at this stage that we hold approximately 100 million euros.

Alison: This is consistent with what we communicated. Oh of course. Long term, we expect an adjusted EBITDA margin. That's also geez, it's slight variations based on our investments. Our capital location priorities are first to invest in the business. Tibetans deleverage. We expect to invest approximately 150 million euros of capital expenditure just contribute to all. Primarily relating to ongoing production capacity expansion, maybe a little bit.

Speaker Change: All materials and semi finished goods as we ask the production in house.

Speaker Change: Oh of course. Long term, we expect an adjusted EBITDA margin. That's also geez, it's slight variations based on our investments. Our capital location priorities are first to invest in the business. Tibetans deleverage. We expect to invest approximately 150 million euros of capital expenditure just contribute to all. Primarily relating to ongoing production capacity expansion, maybe a little bit.

Long term, we expect an adjusted EBITDA margin. That's also geez, it's slight variations based on our investments. Our capital location priorities are first to invest in the business. Tibetans deleverage. We expect to invest approximately 150 million euros of capital expenditure just contribute to all. Primarily relating to ongoing production capacity expansion, maybe a little bit.

Speaker Change: Within finished goods in large part related to core and North Sea.

Speaker Change: Our capital location priorities are first to invest in the business. Tibetans deleverage. We expect to invest approximately 150 million euros of capital expenditure just contribute to all. Primarily relating to ongoing production capacity expansion, maybe a little bit.

Speaker Change: <unk>.

Speaker Change: Which can sell for many years and decades.

Speaker Change: The majority of our finished goods is already contracted or allocated against cost of malls.

Speaker Change: Tibetans deleverage. We expect to invest approximately 150 million euros of capital expenditure just contribute to all. Primarily relating to ongoing production capacity expansion, maybe a little bit.

Speaker Change: We expect to invest approximately 150 million euros of capital expenditure just contribute to all. Primarily relating to ongoing production capacity expansion, maybe a little bit.

Speaker Change: Accordingly risks for allowance with a low.

Speaker Change: While the inventory it gives us flexibility to react to.

Speaker Change: Primarily relating to ongoing production capacity expansion, maybe a little bit.

Speaker Change: The increase in demand.

Speaker Change: And to generate additional sales and gain market share.

Speaker Change: In addition, we also have plans to continue [inaudible] and aims to achieve leverage ratio below two within the next 18 months. With that, operator can you please begin the Q&A.

Speaker Change: Our global retail store expansion. In addition, broken soft plans to continue its does that ratchet pauses and aims to achieve leverage ratio below two <unk> within the next 18 months. With that operator. The piece to begin Q&A.

Speaker Change: That cash flow or move that vesting activities, while 100 list.

Speaker Change: In addition, broken soft plans to continue its does that ratchet pauses and aims to achieve leverage ratio below two <unk> within the next 18 months. With that operator. The piece to begin Q&A.

Speaker Change: 1 billion Euro primarily driven by the production capacity pinched.

Speaker Change: Our strong cash flow generation allowed us to completely pay for that capital expenditure almost operates.

Speaker Change: With that operator. The piece to begin Q&A.

Speaker Change: The piece to begin Q&A.

Speaker Change: In addition, we repaid loan and borrowings of 63, Nelligan and physical Smith III.

Operator: Certainly. At this time, we'll be conducting a question and answer session. In an effort to get as many questioners as possible, we ask that you please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one if you wish to ask a question. Please hold while we poll for questions. The first question today is coming from Edward [inaudible] from Piper Sandler. Edward, your line is live.

Speaker Change: In an effort to get as many questioners as possible. We ask that you. Please limit yourself to one question. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again Thats star one if you wish to ask a question. Please hold while we poll for questions. The first question today is coming from Edward and Roma from Piper Sandler. And Richard line of five.

Speaker Change: While increasing our cash position.

Speaker Change: As announced in early November of 2023.

Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again Thats star one if you wish to ask a question. Please hold while we poll for questions. The first question today is coming from Edward and Roma from Piper Sandler. And Richard line of five.

Speaker Change: We continue our deleveraging process IPO and utilized the net proceeds together with cash on hand.

Speaker Change: To repay existing debt.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again Thats star one if you wish to ask a question. Please hold while we poll for questions. The first question today is coming from Edward and Roma from Piper Sandler. And Richard line of five.

Speaker Change: We have already repaid $450 million.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one if you wish to ask a question. Please hold while we poll for questions. The first question today is coming from Edward [inaudible] from Piper Sandler. Edward, your line is live.

Speaker Change: You asked a lot of them.

Speaker Change: And $100 million Bureau of the blend ethanol.

Speaker Change: Please hold while we poll for questions. The first question today is coming from Edward and Roma from Piper Sandler. And Richard line of five.

Walter I'll, just build spectrum Paul.

The first question today is coming from Edward and Roma from Piper Sandler. And Richard line of five.

Speaker Change: Which reduced leverage to below two five.

Speaker Change: IPO.

And Richard line of five.

Now turning to the future.

Unknown: Hey, good afternoon guys. Thanks very much for taking my question. I guess, curious on how you feel about inventory on a SKU basis. It seems like you've had a lot of very popular SKUs like the Boston, particularly in the US. So kind of curious how you feel about some of your hotter SKUs right now and kind of inventory levels in the channel. Thank you.

Speaker Change: We will provide guidance on a full year basis, rather than quarterly.

Edward: Curious on how you feel about inventory on a SKU basis. It seems like you've had a lot of very popular skus like the Boston. Particularly in the U S. So kind of curious how you feel about some of your hotter excuse right now and kind of inventory levels in the channel. Thank you.

Speaker Change: Reflecting the wages via our business towards long term success.

Speaker Change: For fiscal 'twenty, four we expect revenue to be in the range of one client set and $4 billion at 1.76 billion Bureau on a constant counts.

Edward: Particularly in the U S. So kind of curious how you feel about some of your hotter excuse right now and kind of inventory levels in the channel. Thank you.

Alexander Hoff: Hi, Ed. Thanks for your question. Yes, the topic that's been discussing before. Inventory compared to revenue came down and to a degree from 36% to 30% so you'll see we're constantly working on optimizing this. Still, as you know, more than 70-75% are already allocated to customers and more than 75%, it's a timeless and carryover products with Philips so nothing I'm worried about. I'm very positive with the inventory level we have. As a company that's producing our own goods, you always want to be in the position to deliver B to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: This range represents growth of 17%, 18% relative to fiscal 'twenty three.

Speaker Change: Yes, the topic that's been discussing before. Inventory. Some pepto revenue came down and to a degree from 36%. It's a 30% so you'll see we're constantly working on optimizing this. As you know more than 70, 75%. Allocated to a customer. And. More than 75%, it's a timeless and carryover products with Philips. Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: Inventory. Some pepto revenue came down and to a degree from 36%. It's a 30% so you'll see we're constantly working on optimizing this. As you know more than 70, 75%. Allocated to a customer. And. More than 75%, it's a timeless and carryover products with Philips. Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: Some pepto revenue came down and to a degree from 36%. It's a 30% so you'll see we're constantly working on optimizing this. As you know more than 70, 75%. Allocated to a customer. And. More than 75%, it's a timeless and carryover products with Philips. Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: All second pumps and channels contributing to that growth.

Speaker Change: It's a 30% so you'll see we're constantly working on optimizing this. As you know more than 70, 75%. Allocated to a customer. And. More than 75%, it's a timeless and carryover products with Philips. Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: We continue to see strong consumer demand for both sub brands, but does that sort of range, which is better than internal expectations.

Speaker Change: As you know more than 70, 75%. Allocated to a customer. And. More than 75%, it's a timeless and carryover products with Philips. Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: Allocated to a customer. And. More than 75%, it's a timeless and carryover products with Philips. Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: And. More than 75%, it's a timeless and carryover products with Philips. Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

The IPO.

Speaker Change: More than 75%, it's a timeless and carryover products with Philips. Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: We expect adjusted EBITDA margin to be approximately 30% statistical specifics fall, resulting in adjusted EBITDA between 500 expansion development.

Speaker Change: Nothing I'm worried about. I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: I'm very positive with the inventory level, we have you know as a company that's producing our own good you always want to be in the position. Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: At 513 zero on a constant currency basis.

Positioned to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimize that constantly.

Speaker Change: Based on the earlier mentioned revenue guidance.

Speaker Change: With the production stops along with <unk>, we can talk about September three.

Operator: Thank you. The next question is coming from Matthew Boss from JP Morgan. Matthew, your line is live.

Speaker Change: We are very happy.

Speaker Change: Jacob and Paul that all capacity.

Matthew Boss: Great, thanks, and congrats on a nice quarter. So Oliver, could you speak to maybe the broad based strength in demand that you continue to see across geographies? Have you seen any change in top line momentum through holiday or your December end first quarter relative to the more than 20% constant currency growth that you delivered in the fourth quarter and just how would you rank white space category opportunities in 2024?

Speaker Change: We are on track with project built effectively on budget and in time.

Matthew Boss: No. Oliver could you speak to maybe the broad based strength in demand. Thank you continue to see across geographies have you seen any change in top line momentum through holiday or your December and first quarter relative to the more than 20% constant currency growth that you delivered in the fourth quarter and just how would you rank white space. This category opportunities in 2024.

Speaker Change: Oliver could you speak to maybe the broad based strength in demand. Thank you continue to see across geographies have you seen any change in top line momentum through holiday or your December and first quarter relative to the more than 20% constant currency growth that you delivered in the fourth quarter and just how would you rank white space. This category opportunities in 2024.

Speaker Change: The added capacity will help us to fulfill future demands and.

Speaker Change: And we are off to get you to realize the benefits of this capacity expansion later in fiscal 'twenty four.

At the upcoming years.

Speaker Change: In the current year, we expect modest headwinds to adjusted EBITDA margins.

Speaker Change: This category opportunities in 2024.

Speaker Change: <unk> b due to plant ramp up costs and the initial unmet absorption up.

Oliver Reichert: Hi, Matthew. I would say you've seen the growth rate in Q4 was a trailing 2%, so we can't see any kind of downside here for the Q1 and the full year. So as you know what we [inaudible], we try to be very realistic here. You may have heard about the inflation increases again in Germany, and so we are very careful in this segment to be on the right side and not to be let's say too optimistic. But the demand for purpose driven brands an unbroken. It's a bit of a difference to the desire driven luxury brands. I think they are much heavier under pressure; we are not. We see growth everywhere. Your question about the upcoming territories like Atmar the white space, as we said before in the road show and [inaudible], we don't see any significant impact on our business in '24 because we are just about to start this and the investment in retail and the right partners and develop this region carefully is the leading guidance here for us at the moment. They will kick in later, you will see and then they will generate much more growth and they will carry much more EBIT than they do today.

Oliver: <unk>. I would say. You've seen the growth rate in Q4 was a trailing 2%. So we can't see any any kind of. Downside here for the for the Q1 and the full year. So as you know what we are probably conservative we try to be very realistic here. You may have heard about the inflation increases again in Germany, and so we have a. Very carefully.

Oliver: I would say. You've seen the growth rate in Q4 was a trailing 2%. So we can't see any any kind of. Downside here for the for the Q1 and the full year. So as you know what we are probably conservative we try to be very realistic here. You may have heard about the inflation increases again in Germany, and so we have a. Very carefully.

Oliver: You've seen the growth rate in Q4 was a trailing 2%. So we can't see any any kind of. Downside here for the for the Q1 and the full year. So as you know what we are probably conservative we try to be very realistic here. You may have heard about the inflation increases again in Germany, and so we have a. Very carefully.

Speaker Change: These tenants.

Speaker Change: The systems will focus communicated with the IPO.

Oliver: So we can't see any any kind of. Downside here for the for the Q1 and the full year. So as you know what we are probably conservative we try to be very realistic here. You may have heard about the inflation increases again in Germany, and so we have a. Very carefully.

Speaker Change: Long term, we expect an adjusted <unk> 30.

Oliver: Downside here for the for the Q1 and the full year. So as you know what we are probably conservative we try to be very realistic here. You may have heard about the inflation increases again in Germany, and so we have a. Very carefully.

Speaker Change: Slight variations based on our investments.

Speaker Change: Our capital allocation priorities of boats.

Oliver: You may have heard about the inflation increases again in Germany, and so we have a. Very carefully.

Speaker Change: Rest of the business.

Speaker Change: Second to better deleverage.

Oliver: Very carefully.

Speaker Change: We expect to invest approximately 150 billion euros of capital expenditure just because all.

Oliver: <unk> to be on the right side and not to. Let's say optimistic but. No. The demand for purpose driven brands an unbroken. It's a bit of a difference to the desire driven luxury brands. Bear with. Much heavier on the pressure we are not. We see growth everywhere your question about the upcoming territories Atmar the white space. Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Oliver: Let's say optimistic but. No. The demand for purpose driven brands an unbroken. It's a bit of a difference to the desire driven luxury brands. Bear with. Much heavier on the pressure we are not. We see growth everywhere your question about the upcoming territories Atmar the white space. Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Speaker Change: Primarily relating to our ongoing production capacity expansion, maybe a little bit.

Oliver: No. The demand for purpose driven brands an unbroken. It's a bit of a difference to the desire driven luxury brands. Bear with. Much heavier on the pressure we are not. We see growth everywhere your question about the upcoming territories Atmar the white space. Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Oliver: The demand for purpose driven brands an unbroken. It's a bit of a difference to the desire driven luxury brands. Bear with. Much heavier on the pressure we are not. We see growth everywhere your question about the upcoming territories Atmar the white space. Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

I want to do.

Oliver: It's a bit of a difference to the desire driven luxury brands. Bear with. Much heavier on the pressure we are not. We see growth everywhere your question about the upcoming territories Atmar the white space. Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Speaker Change: <unk> global retail store.

Speaker Change: In addition, driven assault plans to continue to see that ratchet closeouts and aims to achieve leverage ratio below two <unk> within the next 18 months.

Oliver: Bear with. Much heavier on the pressure we are not. We see growth everywhere your question about the upcoming territories Atmar the white space. Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Oliver: Much heavier on the pressure we are not. We see growth everywhere your question about the upcoming territories Atmar the white space. Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Oliver Reichert: Your question about the upcoming territories like Atmar the white space, as we said before in the road show and [inaudible], we don't see any significant impact on our business in '24 because we are just about to start this and the investment in retail and the right partners and develop this region carefully is the leading guidance here for us at the moment. They will kick in later, you will see and then they will generate much more growth and they will carry much more EBIT than they do today.

Oliver: We see growth everywhere your question about the upcoming territories Atmar the white space. Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Speaker Change: With that operator A&P to begin Q&A.

Oliver: Said before in the road show with him in the testing the water vessels, we don't see any significant impact on our business. In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Speaker Change: Certainly at this time, we will be conducting a question and answer session.

Oliver: In 24, because we are we are just about to start this and the investment in retail and the right partners and develop that. Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Speaker Change: In an effort to get as many questioners as possible. We ask that you. Please limit yourself to one question.

Oliver: Region carefully. The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Oliver: The leading guidance. Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Oliver: Guidance here for us at the moment. Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Oliver: Will kick in later, you will see and then they will generate as much. More growth and they would carry a much more a bit. They do today.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again Thats star one if you wish to ask a question.

Oliver: More growth and they would carry a much more a bit. They do today.

Oliver: They do today.

Speaker Change: Please hold while we poll for questions.

Operator: Thank you. The next question is coming from Louise [inaudible] from Goldman Sachs. Louise, your line is live.

Speaker Change: The first question today is coming from Edward <unk> from Piper Sandler.

Unknown: Hi, thank you. Hi, Oliver and Erik and team and thanks for taking my question. I wanted to just ask about the factory in terms of how that's gone, I think it opened in September. It's obviously very important to the volume increase for the year ahead. It would be interesting to know just where you are in terms of expectations and any learnings since September. Thank you.

Speaker Change: Edward your line of sight.

Louise Hurst: I wanted to just ask about the factory and in terms of how that's gone I think it opened in September. It's obviously very important to the funding increase for the year ahead. Interesting to know just how where you are in terms of expectations.

Edward: Hey, good afternoon, guys. Thanks for taking my question I guess.

Edward: Curious on how you feel about inventory on a SKU basis. It seems like you've had a lot of very popular skus like the Boston Park.

Louise Hurst: Interesting to know just how where you are in terms of expectations.

Oliver Reichert: Hi, Louise. As you know, the new factory [inaudible] and refitting in [inaudible] and some refitting in Portugal in [inaudible] will give us in the next years the opportunity to double the capacity. So that's really a big moment for us to really grow the capacity. And of course as we said it before, you see some negative impact on our margin within the '24 numbers because of the [inaudible] one off effects.

Edward: In the U S. So kind of curious how you feel about some of your hotter excuse right now and kind of inventory levels in the channel. Thank you.

Speaker Change: Hi, Louise. As you know the new the new factory and positive outlook. <unk>. Refitting and governance and some repeating. Factory in Portugal, and <unk> will give us in the next years. The opportunity to double the capacity. So that's really a big moment for us to really grow the capacity and of course as we said it before. You'd see some negative impact on our margin within the 24 numbers because of the positive. One off effects.

Speaker Change: As you know the new the new factory and positive outlook. <unk>. Refitting and governance and some repeating. Factory in Portugal, and <unk> will give us in the next years. The opportunity to double the capacity. So that's really a big moment for us to really grow the capacity and of course as we said it before. You'd see some negative impact on our margin within the 24 numbers because of the positive. One off effects.

Thanks for your question, yes, the topic that's been discussing before.

Speaker Change: <unk>. Refitting and governance and some repeating. Factory in Portugal, and <unk> will give us in the next years. The opportunity to double the capacity. So that's really a big moment for us to really grow the capacity and of course as we said it before. You'd see some negative impact on our margin within the 24 numbers because of the positive. One off effects.

Speaker Change: Refitting and governance and some repeating. Factory in Portugal, and <unk> will give us in the next years. The opportunity to double the capacity. So that's really a big moment for us to really grow the capacity and of course as we said it before. You'd see some negative impact on our margin within the 24 numbers because of the positive. One off effects.

Edward: Tori.

Speaker Change: Factory in Portugal, and <unk> will give us in the next years. The opportunity to double the capacity. So that's really a big moment for us to really grow the capacity and of course as we said it before. You'd see some negative impact on our margin within the 24 numbers because of the positive. One off effects.

Edward: <unk> revenue came down and to a degree from 36% to 20.

Edward: It's a 30% so you'll see we are constantly working on optimizing this.

Speaker Change: The opportunity to double the capacity. So that's really a big moment for us to really grow the capacity and of course as we said it before. You'd see some negative impact on our margin within the 24 numbers because of the positive. One off effects.

Speaker Change: Phil as you know more than 70, 75% are already allocated to our customer.

You'd see some negative impact on our margin within the 24 numbers because of the positive. One off effects.

Speaker Change: And.

Speaker Change: Most more than 75%, it's a timeless and carryover product from Phillip So nothing I'm worried about.

Speaker Change: One off effects.

Speaker Change: And to be super honest, we see also some pressure from inflation coming in '24. As you know, we are very sensitive, but our customers are very [inaudible] our pricing power so we would have been up less space to further increase pricing and helping digesting the one-off costs through this factory improvements and the further investment in our capacity. So we are on track here and this will give us a completely different situation from '25 onwards. So we expect that this growth preparation will be heavily digested within '24 and then you will see a quick recovery of margins and efficiency and hopefully less inflation as well.

Speaker Change: I'm very positive with the inventory level, we have you know as a company that's producing our own goods you always want to be.

Speaker Change: As you know we are very. Sensitive, but our customers are very low and that our pricing power. So we would have been up less space to further increase pricing and. Helping digesting the one off costs through this. <unk> improvements and the further investment in our capacity. So we are on track here. And this will give us. Completely different situation. From 'twenty five onwards, so we expect. Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: Sensitive, but our customers are very low and that our pricing power. So we would have been up less space to further increase pricing and. Helping digesting the one off costs through this. <unk> improvements and the further investment in our capacity. So we are on track here. And this will give us. Completely different situation. From 'twenty five onwards, so we expect. Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: In the position to deliver D to C, which we will grow so we need inventory, we will increase inventory, but still we optimized that constantly.

Speaker Change: Thank you. The next question is coming from Matthew boss from Jpmorgan.

Speaker Change: Helping digesting the one off costs through this. <unk> improvements and the further investment in our capacity. So we are on track here. And this will give us. Completely different situation. From 'twenty five onwards, so we expect. Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: <unk> improvements and the further investment in our capacity. So we are on track here. And this will give us. Completely different situation. From 'twenty five onwards, so we expect. Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Matthew Boss: After year end thanks.

Matthew Boss: Thanks, and congrats on a nice quarter.

Speaker Change: So we are on track here. And this will give us. Completely different situation. From 'twenty five onwards, so we expect. Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Matthew Boss: So.

Speaker Change: And this will give us. Completely different situation. From 'twenty five onwards, so we expect. Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: Completely different situation. From 'twenty five onwards, so we expect. Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: From 'twenty five onwards, so we expect. Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: Debt. Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: Growth preparation. We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: We'll be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully lesser inflation as well.

Speaker Change: Base category opportunities in 2024.

Oliver: Hi, Matthew.

<unk>.

Operator: Thank you. The next question is coming from Michael Benetti from Evercore ISI. Michael, your line is live.

Oliver: I would say.

Oliver: You've seen the growth rate in Q4, which is 22%.

Michael Benetti: Hey, guys. Good morning, and congrats on your first quarter out of the gate here. I just wanted to clarify one comment from before on fiscal '24. As we think about the cadence of the year a little bit, I know you're guiding on an annual basis, but did you say that to look at that 22% constant currency growth rate in fourth quarter is a good way to think about how the revenues grow early in the year in the December quarter and if that was right. And then to the question about the factory coming online could you speak to how we should think about the pace of unit volume growth building as we move through the year and to the comment you made about later in the year, you'll start to see some of the effects of the new factory ramping? And then David, if you wouldn't mind for a second tell us about maybe a little bit about what you referred to as the land grabs in the Americas, please?

Oliver: So we can't see any.

Oliver: Any kind of.

Speaker Change: Just wanted to clarify one comment from before on fiscal 'twenty forward did you say as we think about the cadence of the year, a little bit I know youre guiding on an annual basis, but did you say that to look at that 22% constant currency growth rate in fourth quarter is a good way to think about. How the revenues grow early in the air in the December quarter. And if I was if that was right.

Oliver: Downside here for the for the Q1 and the full year. So as you know what we are probably conservative we try to be very realistic here.

Oliver: You may have heard about the inflation increases again in Germany, and so we are.

Speaker Change: How the revenues grow early in the air in the December quarter. And if I was if that was right.

Oliver: Very carefully.

Oliver: <unk> to be on the right side and not to.

Speaker Change: And if I was if that was right.

Speaker Change: To the question about the factory coming online could you speak to what do you think we should how we should think about the pace of unit volume growth building as we move through the year into the comment you made about later in the year, you'll start to see some of the effects of the of any factory ramping and then David If you wouldn't mind for a second tell us about. Maybe a little bit about what you referred to the land grabs and Americas. Please.

Oliver: Let's say optimistic but.

Oliver: No.

Oliver: The demand for purpose driven brands.

Oliver: <unk> broken it.

Oliver: It's a bit of a difference to the desire driven luxury brands.

Thank them with me.

Oliver: Much heavier on the pressure we have.

Speaker Change: Maybe a little bit about what you referred to the land grabs and Americas. Please.

Oliver: Not.

Oliver: We see growth everywhere your question about the upcoming territories, but I admire the white space.

Oliver Reichert: So that's a lot of questions Michael. I will start with the beginning. We do see we do see a unit growth of course within '24. This would give us some movement to improve our distribution model. Coming back to your Q4 numbers and the outlook in Q1, you know what, we are conservative, but we will not disconnect to the reality. I mean our growth rate in Q4 is 22%, so why should this drop so dramatically. The full year guidance is between 17 and 18% but the truth is, we are kicking in on a level of 22% in Q4 and yes, this is not dramatically declining and we are very positive about our Q1 already. But we are talking about our full year guidance, so as you know, on the conservative side being [inaudible] in this segment of IPO presentations and communications, we want to make sure that we're on the right side and that's why we are sticking with our full year guidance of 17% to 18%. Okay, I'll hand over to David to give you a bit of a color of the US market.

Oliver: As we said before in the Roadshows in the testing the water vessels, we don't see any significant impact on our business.

I will start with the beginning I was probably the beginning. Yes. We do see we do see. <unk>. Our unit growth of course within 24. This will this would give us some movement to improve our distribution model.

Speaker Change: Yes. We do see we do see. <unk>. Our unit growth of course within 24. This will this would give us some movement to improve our distribution model.

Speaker Change: We do see we do see. <unk>. Our unit growth of course within 24. This will this would give us some movement to improve our distribution model.

Speaker Change: <unk>. Our unit growth of course within 24. This will this would give us some movement to improve our distribution model.

Oliver: In 2004, because we are we are just about to start this and the investment in retail and the right partners in developed regions.

Speaker Change: Our unit growth of course within 24.

Speaker Change: This will this would give us some movement to improve our distribution model.

Oliver: Regions carefully.

Oliver: The leading.

Speaker Change: Coming back to your Q4 numbers and the outlook in Q1. It's really you know you know what we have. Conservative, but we will not do. With connected to the reality I mean. Our growth rate in Q4 of 22%, Okay. So why should this drop so. So dramatically. The full year guidance is between <unk>. 17 and 18%. But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Oliver: Guidance here for us at the moment.

Oliver: They will kick in later you will see.

Speaker Change: It's really you know you know what we have. Conservative, but we will not do. With connected to the reality I mean. Our growth rate in Q4 of 22%, Okay. So why should this drop so. So dramatically. The full year guidance is between <unk>. 17 and 18%. But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Oliver: And then they will generate as much.

Conservative, but we will not do. With connected to the reality I mean. Our growth rate in Q4 of 22%, Okay. So why should this drop so. So dramatically. The full year guidance is between <unk>. 17 and 18%. But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Oliver: More growth and they will carry a much more EBIT.

Speaker Change: With connected to the reality I mean. Our growth rate in Q4 of 22%, Okay. So why should this drop so. So dramatically. The full year guidance is between <unk>. 17 and 18%. But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Oliver: As they do today.

Speaker Change: Our growth rate in Q4 of 22%, Okay. So why should this drop so. So dramatically. The full year guidance is between <unk>. 17 and 18%. But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Speaker Change: Thank you. The next question is coming from Louise single Hurst from Goldman Sachs. Your line of five.

Speaker Change: So dramatically. The full year guidance is between <unk>. 17 and 18%. But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Speaker Change: The full year guidance is between <unk>. 17 and 18%. But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Louise Hurst: Hi, Thank you, Hi, Oliver and Eric and team and thanks for taking my question.

Speaker Change: 17 and 18%. But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Louise Hurst: If I could just ask about the factory and in terms of how that's gone and I think it opened in September it's obviously very important to the ballgame.

Speaker Change: But the truth is we are kicking in on that on a level of 22% in Q4 and and yes. This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Louise Hurst: Kris.

Speaker Change: This is not dramatically declining and we are very positive about how our Q1 already. But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Kris: Go ahead, and it'd be interesting to know just how weibo in terms of expectations.

Speaker Change: But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment. Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Kris: The lending since September thank you.

Kris: Sure.

Kris: Salaries.

Kris: As you know the new the new factory and positive outlook and the.

Speaker Change: Of IPO presentations and communications. Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Kris: Refitting.

Speaker Change: Want to make sure that we're on the right side and and Thats why we are sticking with our guidance. For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Kris: In governance, and some repeating in our fab.

Kris: In Portugal, and <unk> will give us in the next years.

Speaker Change: For the full year guidance of 17% to 18%. Okay, and then hand over to David to give you a bit of a color of the U S market.

Kris: The opportunity to double the capacity. So that's really a big moment for us to really grow the capacity and of course as we said it before.

Speaker Change: Okay, and then hand over to David to give you a bit of a color of the U S market.

David Kahan: Thanks Oliver. Thanks Michael for the question. Land grab is a term we use where we really aggressively take some share. I mean, what we're seeing in the US right now is it's almost a little counter intuitive, but the more challenged the consumer spending power has been, really the better it's been for the brands that are really in high demand. And like Oliver said, what we're seeing is this incredible shift right now in shopping patterns from general shopping to real intentional purchasing where people are searching out those products, brands, experiences they really want and obviously Birkenstock is one of those few that's benefiting. And when we had an opportunity in the recent months to take some share and to provide especially our retail partners with a brand that is selling through at near record levels of full price realization, we took that opportunity to fill some more shelf space.

David: Thanks, Oliver Thanks, Michael for the question. Land grab is a term we use where we really aggressively take some share I mean, what we're seeing in the U S. Right. Now is it's almost a little counter intuitive, but the more challenged the consumer spending power has been really the better it's been for the brands that are really in high demand than like Oliver said, what we're seeing. Is this incredible shift right now in shopping patterns from general shopping to real intentional purchasing where people are searching out those products brands experiences. They really want and obviously berken stock is one of those few that's benefiting and when we had an opportunity. In the recent months to take some share and to provide especially our retail partners with a brand that is selling through at NEER. Record levels of full price realization, we took that opportunity to to fill some more shelf space.

Land grab is a term we use where we really aggressively take some share I mean, what we're seeing in the U S. Right. Now is it's almost a little counter intuitive, but the more challenged the consumer spending power has been really the better it's been for the brands that are really in high demand than like Oliver said, what we're seeing. Is this incredible shift right now in shopping patterns from general shopping to real intentional purchasing where people are searching out those products brands experiences. They really want and obviously berken stock is one of those few that's benefiting and when we had an opportunity. In the recent months to take some share and to provide especially our retail partners with a brand that is selling through at NEER. Record levels of full price realization, we took that opportunity to to fill some more shelf space.

Kris: You would see some negative impact on our margin within the 24 numbers because of this positive.

Kris: One off effects.

Kris: And to be Super honest that we see also some pressure from inflation coming in 'twenty four.

Kris: As you know we are very.

David: Is this incredible shift right now in shopping patterns from general shopping to real intentional purchasing where people are searching out those products brands experiences. They really want and obviously berken stock is one of those few that's benefiting and when we had an opportunity. In the recent months to take some share and to provide especially our retail partners with a brand that is selling through at NEER. Record levels of full price realization, we took that opportunity to to fill some more shelf space.

Kris: Sensitive, but our customers are very loose our pricing power. So we have enough space to further increase pricing and.

Kris: Helping digesting the one off costs through this.

Great improvements and the further investment in our capacity.

David: In the recent months to take some share and to provide especially our retail partners with a brand that is selling through at NEER. Record levels of full price realization, we took that opportunity to to fill some more shelf space.

Kris: So we are on track here.

Kris: And this will give us.

Kris: Completely different situation.

From 'twenty five onwards, so we expect.

David: Record levels of full price realization, we took that opportunity to to fill some more shelf space.

Kris: Debt.

Kris: Growth preparation.

Kris: It will be heavily digested within 24, and then you will see a quick recovery of margins and efficiency and hopefully less inflation as well.

Operator: Thank you. And once again, it is star one on your phone today if you wish to ask a question. That's star one on your phone to enter the Q&A queue. Next question is coming from Dana Telsey from Telsey Group. Dana, your line is live.

Speaker Change: Next question is coming from Dana Telsey from Telsey Group Dana Your line of life.

Speaker Change: Thank you. The next question is coming from Michael Benetti from Evercore ISI, Michael Your line of lives.

Dana Telsey: Hi, good afternoon everyone and congratulations. Oliver, David, Erik, as you think about ASP and units sold and even by region, how are you thinking about new categories and new products on the ASP side versus core in terms of can you take price increase given the inflation, do you not take price increase, does it differ by channel and region and with the new introductions of new items this year, what's the pace like compared to last year? Does it differ in terms of timing as to what we should see by quarter? Thank you. Thanks for the question Dana. We have taken price increases over the past few years on an ongoing basis

Michael Benetti: Hey, guys. Good morning, and congrats on your first quarter out of the gate here.

Dana Telsey: You think about SP and units sold and even by region. How are you thinking about new categories and new product on the AFP side versus core in terms of can you take price increase given the inflation cannot take price increase does it differ by channel and region and with the new introductions of new. New items this year, what's the pace like compared to last year does it differ in terms of timing as to what we should see by quarter. Thank you. Thanks for the question Dan. We have taken price increases over over the past few years on an ongoing basis.

Speaker Change: Just wanted to clarify one comment from before on fiscal 'twenty. Four did you say as we think about the cadence of the year, a little bit I know youre guiding on an annual basis, but did you say that to look at that 22% constant currency growth rate in fourth quarter is a good way to think about.

Speaker Change: How the revenues grow early in the air in the December quarter.

Dana Telsey: New items this year, what's the pace like compared to last year does it differ in terms of timing as to what we should see by quarter. Thank you. Thanks for the question Dan. We have taken price increases over over the past few years on an ongoing basis.

Speaker Change: And if I was if that was right.

Speaker Change: To the question about the factory coming online could you speak to what you think we should how we should think about the pace of the unit volume growth building as we move through the year into the comment you made about later in the year, you'll start to see some of the effects of the of any factory ramping and then David If you wouldn't mind for a second <unk>.

Speaker Change: Thanks for the question Dan. We have taken price increases over over the past few years on an ongoing basis.

Oliver Reichert: Thanks for the question Dana. We have taken price increases over the past few years on an ongoing basis on our core products and what we're seeing is the consumer response to leather, to more higher priced products has been far beyond our expectations. It's exactly what I spoke about. There are incredible intentional purchases where consumers our brand fans are searching out products and it just so happens to be that some of those products, especially the closed toe ones are obviously at higher average selling prices. So the consumer who's come to our brand by way of our core products, as you know, we averaged 3.6 pairs per consumer, they might come to us from a core purchase and then their next purchase and their next purchase and their next 3.6 purchases may be closed toe or clog products that just happened to be higher average ticket. So we're seeing no price compression whatsoever, and we're actually seeing a growing demand for our higher priced products, which are just resonating with the consumers.

We have taken price increases over over the past few years on an ongoing basis.

Speaker Change: on our core products and what we're seeing is the consumer response to leather, to more higher priced products has been far beyond our expectations. It's exactly what I spoke about. There are incredible intentional purchases where consumers our brand fans are searching out products and it just so happens to be that some of those products, especially the closed toe ones are obviously at higher average selling prices. So the consumer who's come to our brand by way of our core products, as you know, we averaged 3.6 pairs per consumer, they might come to us from a core purchase and then their next purchase and their next purchase and their next 3.6 purchases may be closed toe or clog products that just happened to be higher average ticket. So we're seeing no price compression whatsoever, and we're actually seeing a growing demand for our higher priced products, which are just resonating with the consumers.

David: About maybe a little bit about what you referred to the land grabs and Americas. Please.

David: So that's why there's a lot of questions Michael.

David: I will start with the beginning I will start at the beginning.

David: <unk>.

David: We do see we do see.

David: <unk>.

David: Our unit growth of course within 24.

Speaker Change: And it just so happens to be that some of those products, especially the closed toe ones are obviously at higher average selling prices. So the consumer who's come to our brand by way of our core products. As you know we averaged three six pairs per consumer they might come to us from a core purchase. And then their next purchase and their next purchase and then next three six purchases may be closed toe or cloud products that just happened to be higher average ticket. So we're seeing no price compression whatsoever, and we're actually seeing a growing demand for our higher priced products, which are just <unk>. <unk> with the consumers.

David: This will this will give us some movement to improve our agenda distribution model.

David: Coming back to your Q4 numbers and the outlook in Q1.

David: It's really you know.

David: Yes.

Speaker Change: And then their next purchase and their next purchase and then next three six purchases may be closed toe or cloud products that just happened to be higher average ticket. So we're seeing no price compression whatsoever, and we're actually seeing a growing demand for our higher priced products, which are just <unk>. <unk> with the consumers.

David: Conservative, but we were not.

David: Disconnected to the reality.

David: Our growth rate in Q4 of 22%.

David: So why should this drop still.

David: So dramatically.

David: The full year guidance is between <unk>.

David: 17 and 18%.

Speaker Change: <unk> with the consumers.

David: But the truth is we are kicking in on that on a level of 22% in Q4 and and yes.

Nico Bouyakhf: Hey, Dana. This is Nico, maybe I can also add a bit color from the European perspective. So in Europe over the course of the last two years, we have increased pricing weighted average around 25%, which is really significant and for us pricing just generally across the group is a seasonal exercise. So every season we look at the entire portfolio, the entire collection, we look at input cost, we look at the costs and then also look at what equity we have for each individual product and what can we charge for that product. So we are currently selling in autumn winter '24. We sold [inaudible] '24 for Europe again, a significant price increase in that season, and that's going to continue. The price increases that we have done so far did not result in any negative impact from the consumer perspective. So the demand remains unchanged, remains unbroken, and that's quite special for us as a brand across the globe.

Speaker Change: This is niko maybe I can also add a bit color from from the European perspective, So in Europe over the course of the last two years, we have increased pricing weighted average around 25%, which is really significant and for us pricing just generally across the group as a seasonal exercise. So every season, we look at the entire portfolio of the entire <unk>. Collection and input cost look at the clock and then also look at what equity we have for each and individual product and what can we charge for that product. So we are currently selling in autumn winter 'twenty four we sold and being somewhat 'twenty four for Europe again, a significant price increase in that season, and that's going to. The price increases that we have done so far it did not result in any negative impact from the consumer perspective. So the demand remains unchanged remains unbroken and that's quite special for us as a brand across the globe.

David: This is not dramatically declining and we are very positive about our Q1 already.

David: But we are talking about our full year guidance. So as you know on the conservative side being <unk> in this segment.

Niko: Collection and input cost look at the clock and then also look at what equity we have for each and individual product and what can we charge for that product. So we are currently selling in autumn winter 'twenty four we sold and being somewhat 'twenty four for Europe again, a significant price increase in that season, and that's going to. The price increases that we have done so far it did not result in any negative impact from the consumer perspective. So the demand remains unchanged remains unbroken and that's quite special for us as a brand across the globe.

David: IPO presentations in communications and we want to make sure that we on the right side.

And Thats why we are sticking with our guidance for the full year guidance of 17% to 18%.

Speaker Change: Okay, and then hand over to David to give you a bit of a color of the up market.

Speaker Change: Yeah.

Niko: The price increases that we have done so far it did not result in any negative impact from the consumer perspective. So the demand remains unchanged remains unbroken and that's quite special for us as a brand across the globe.

David: Thanks, Oliver Thanks, Michael for the question.

David: Land grab is a term we use where we really aggressively take some share I mean, what we're seeing in the U S. Right. Now is it's almost a little counter intuitive, but the more challenged the consumer spending power has been really the better it's been for the brands that are really in high demand and like Oliver said, what we're seeing.

Operator: Thank you. The next question is coming from Paul [inaudible] from Citi. Paul, your line is live.

Unknown: Thanks guys. I'm curious what surprised you if anything on a regional basis, both positive and negative and maybe how does that shape how you're thinking about growth [inaudible]. Maybe if you can talk about which region will come on the higher end of that 17% to 18% growth rate that you guided to versus the lower end or below maybe you can provide by region. Thanks.

Paul: He then in F Q4, maybe if you can talk about. Which region will come on the higher end of that 70% to 18% growth rate that you guided to versus the lower end or below maybe you can provide by region. Thanks.

Which region will come on the higher end of that 70% to 18% growth rate that you guided to versus the lower end or below maybe you can provide by region. Thanks.

David: In the recent months to take some share and to provide especially our retail partners with a brand that is selling through at NEER.

David: Record levels of full price realization, we took that opportunity too.

Oliver Reichert: Thanks for your question. As you know, there are two big geographies, Europe and America, more or less growing on the same speed, which is very encouraging because it shows that even in the traditional markets, we are growing very, very strong. You have to keep in mind that our capacity is still very limited that's why we didn't have enough product on the unit side to further push more into the Akamai region, so that's why Akamai as a region is only growing by 27%. But in the near future, once we have [inaudible] up and running and the improvement in the other factories in [inaudible] in Portugal then we will be able to fulfill much better the very, very strong demand in China in the Akamai region as a whole.

David: To fill some more shelf space.

Speaker Change: <unk> debt. Big too. Geographies Europe and America. More or less growing on the same speed, which is very encouraging because it shows that even in Detroit. The traditional markets. We are growing very very strong you have to keep in mind that our capacity is still very limited that's why we didn't. I have enough product to into further on the unit side further push more into a region. So that's why Akamai as the region is only growing by 27%. But in the near future. Once we have positive are up and running and the improvement in the other factories in Golar is and in a recurrent brought to go then we will be able to fulfill much better the very very strong demand in China in my region as a whole.

Speaker Change: Big too. Geographies Europe and America. More or less growing on the same speed, which is very encouraging because it shows that even in Detroit. The traditional markets. We are growing very very strong you have to keep in mind that our capacity is still very limited that's why we didn't. I have enough product to into further on the unit side further push more into a region. So that's why Akamai as the region is only growing by 27%. But in the near future. Once we have positive are up and running and the improvement in the other factories in Golar is and in a recurrent brought to go then we will be able to fulfill much better the very very strong demand in China in my region as a whole.

Speaker Change: Geographies Europe and America. More or less growing on the same speed, which is very encouraging because it shows that even in Detroit. The traditional markets. We are growing very very strong you have to keep in mind that our capacity is still very limited that's why we didn't.

Speaker Change: Thank you and once again it is star one on your phone today, if you wish to ask a question Thats Star one on your phone to enter the Q&A queue.

Speaker Change: More or less growing on the same speed, which is very encouraging because it shows that even in Detroit. The traditional markets. We are growing very very strong you have to keep in mind that our capacity is still very limited that's why we didn't.

Speaker Change: Next question is coming from Dana Telsey from Telsey Group Dana Your line is live.

Speaker Change: The traditional markets. We are growing very very strong you have to keep in mind that our capacity is still very limited that's why we didn't.

Dana Telsey: Good afternoon, everyone and congratulations.

Dana Telsey: Oliver David Eric do you think about SP and units sold and even even by region.

Speaker Change: I have enough product to into further on the unit side further push more into a region. So that's why Akamai as the region is only growing by 27%. But in the near future. Once we have positive are up and running and the improvement in the other factories in Golar is and in a recurrent brought to go then we will be able to fulfill much better the very very strong demand in China in my region as a whole.

Dana Telsey: How are you thinking about new categories and new products on the ISP side versus core in terms of can you take price increase given the inflation did not take price increase does it differ by channel and region and with the new introductions of new items. This year, what's the pace like compared to last year does it differ.

Speaker Change: So that's why Akamai as the region is only growing by 27%. But in the near future. Once we have positive are up and running and the improvement in the other factories in Golar is and in a recurrent brought to go then we will be able to fulfill much better the very very strong demand in China in my region as a whole.

Speaker Change: But in the near future. Once we have positive are up and running and the improvement in the other factories in Golar is and in a recurrent brought to go then we will be able to fulfill much better the very very strong demand in China in my region as a whole.

Dana Telsey: In terms of timing as to what we should see by quarter. Thank you.

Speaker Change: Thanks for the question Dana.

Speaker Change: Klaus can give you some color on this after my explanation. One thing and you asked for downsides, to be super, super honest, we under estimated the inflationary effects. So if you try to understand the bridge from '22 numbers with a 35% margin going to our outlook, which is conservative, please have this in mind. Our conservative outlook for '24, we come to 30% so the bridge from the 35 to the 30 is we didn't manage enough price increases in '22. They were fully in our books in '22. That's why we had this outstanding margins then the inflation on '23 kicked in and we lost more or less like 2.5% due to this inflation impact and we cannot adjust the pricing in between the year. So we need at least like 10 to 12 months in advance to prepare ourselves for price increases, that's what we're doing this year again. So the inflation will be--and that's really like the question mark here for the '24 numbers, how big will the inflation come back again in '24.

Speaker Change: We have taken price increases over over the past few years on an ongoing basis.

Speaker Change: Color on Optum. Optimize my explanation. One thing and you asked for downsides to be Super Super honest, we under estimated the inflationary effects. So if you if you try to understand the bridge from. 'twenty two numbers with a 35% margin going to our outlook, which is conservative. Please have this in mind, our conservative outlook for 'twenty four. We come back we come to a 30% so the bridge from the 35 to the 30 <unk>. We didnt manage enough price increases in 'twenty two. They were fully in.

Speaker Change: Optimize my explanation. One thing and you asked for downsides to be Super Super honest, we under estimated the inflationary effects. So if you if you try to understand the bridge from. 'twenty two numbers with a 35% margin going to our outlook, which is conservative. Please have this in mind, our conservative outlook for 'twenty four. We come back we come to a 30% so the bridge from the 35 to the 30 <unk>. We didnt manage enough price increases in 'twenty two. They were fully in.

One thing and you asked for downsides to be Super Super honest, we under estimated the inflationary effects. So if you if you try to understand the bridge from. 'twenty two numbers with a 35% margin going to our outlook, which is conservative. Please have this in mind, our conservative outlook for 'twenty four. We come back we come to a 30% so the bridge from the 35 to the 30 <unk>. We didnt manage enough price increases in 'twenty two. They were fully in.

Speaker Change: On our core products and what we're seeing is the consumer response to leather to more higher priced products has been far beyond our expectations. It's exactly what I spoke about there is incredible intentional purchases where consumers our brand fans are searching out products.

'twenty two numbers with a 35% margin going to our outlook, which is conservative. Please have this in mind, our conservative outlook for 'twenty four. We come back we come to a 30% so the bridge from the 35 to the 30 <unk>. We didnt manage enough price increases in 'twenty two. They were fully in.

Speaker Change: We come back we come to a 30% so the bridge from the 35 to the 30 <unk>. We didnt manage enough price increases in 'twenty two. They were fully in.

Speaker Change: And it just so happens to be that some of those products, especially the close till ones are obviously at higher average selling prices. So the consumer who has come to our brand by way of our core products. As you know we averaged three six pairs per consumer they might come to us from a core purchase.

Speaker Change: We didnt manage enough price increases in 'twenty two. They were fully in.

Speaker Change: They were fully in.

Speaker Change: our books in '22. That's why we had this outstanding margins then the inflation on '23 kicked in and we lost more or less like 2.5% due to this inflation impact and we cannot adjust the pricing in between the year. So we need at least like 10 to 12 months in advance to prepare ourselves for price increases, that's what we're doing this year again. So the inflation will be--and that's really like the question mark here for the '24 numbers, how big will the inflation come back again in '24. We know that [inaudible] will digest some of this margin so roughly from '22 to '23 we lost 2.5 due to inflation margin points or 250 basis points and the inflation will further cost us, our calculation at the moment, 120 basis point in '24 and 120 basis points, the idle cost of [inaudible] or the whole factory rearrangement setup right. So Klaus will follow up with some Chinese data.

our books in '22. That's why we had this outstanding margins then the inflation on '23 kicked in and we lost more or less like 2.5% due to this inflation impact and we cannot adjust the pricing in between the year. So we need at least like 10 to 12 months in advance to prepare ourselves for price increases, that's what we're doing this year again. So the inflation will be--and that's really like the question mark here for the '24 numbers, how big will the inflation come back again in '24.

Speaker Change: We lost more or less like two 5% due to this inflation impact and we cannot adjust the pricing. In between the year, so we need the lift like 10 to 12 months in advance to prepare ourselves for price increases that's what we're doing this year again, so the inflation will be in <unk>. That's really like the question Mark here for the 24 numbers, how big will the inflation come back again in 'twenty four. No that part of the Wildblue Digest some of this. Our margin so. Took roughly from 'twenty two to 'twenty, three we lost $2 five due to inflation. Margin points. 150 basis points and the inflation with further cost us. Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

Speaker Change: In between the year, so we need the lift like 10 to 12 months in advance to prepare ourselves for price increases that's what we're doing this year again, so the inflation will be in <unk>. That's really like the question Mark here for the 24 numbers, how big will the inflation come back again in 'twenty four. No that part of the Wildblue Digest some of this. Our margin so. Took roughly from 'twenty two to 'twenty, three we lost $2 five due to inflation. Margin points. 150 basis points and the inflation with further cost us. Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

Speaker Change: <unk> with the consumers.

Hey, Dan.

Speaker Change: That's really like the question Mark here for the 24 numbers, how big will the inflation come back again in 'twenty four. No that part of the Wildblue Digest some of this. Our margin so. Took roughly from 'twenty two to 'twenty, three we lost $2 five due to inflation. Margin points. 150 basis points and the inflation with further cost us. Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

Speaker Change: No that part of the Wildblue Digest some of this. Our margin so. Took roughly from 'twenty two to 'twenty, three we lost $2 five due to inflation. Margin points. 150 basis points and the inflation with further cost us. Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

We know that [inaudible] will digest some of this margin so roughly from '22 to '23 we lost 2.5 due to inflation margin points or 250 basis points and the inflation will further cost us, our calculation at the moment, 120 basis point in '24 and 120 basis points, the idle cost of [inaudible] or the whole factory rearrangement setup right. So Klaus will follow up with some Chinese data.

Speaker Change: Our margin so. Took roughly from 'twenty two to 'twenty, three we lost $2 five due to inflation. Margin points. 150 basis points and the inflation with further cost us. Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

Speaker Change: Took roughly from 'twenty two to 'twenty, three we lost $2 five due to inflation. Margin points. 150 basis points and the inflation with further cost us. Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

Niko: <unk> and look at input costs looking at the clock and then also look at what equity we have for each individual product and what can we charge for that product. So we're currently selling in spring summer 'twenty four for them being somewhat 'twenty four for Europe again, a significant price increase in that season and thats going to.

Speaker Change: Margin points. 150 basis points and the inflation with further cost us. Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

Speaker Change: 150 basis points and the inflation with further cost us. Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

Speaker Change: Our calculation at the moment 120 basis point in 'twenty, four and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

Niko:

Klaus Schwab: Hello Paul, Klaus here. For your question about a positive and surprising effect, the expansion in greater China [inaudible] because we're taking over the B to C and we are having more owned stores running which are really over performing and driving not only the business also the ASP and obviously the rollout will continue. All the campaigns we are running in greater China are doing very, very well. With the growing capacities we have, I mean, we can constantly support that demand and deliver into the country very positively.

Speaker Change: Hello, Paul Cloutier. <unk> for your question about a positive and surprising effect. The expansion in greater. Greater China lineup now gives us also. Just because we're taking over the DTC and we are having more owned stores running which are really over performing and driving not only the business also the ASP and. Obviously, the rollout will continue although the campaigns, we are running in greater China. Doing very very well. The growing capacities, we have I mean, we can. Constantly supporting demand and delivering into the country. It's very positive. Yeah.

China Chinese: <unk> for your question about a positive and surprising effect. The expansion in greater. Greater China lineup now gives us also. Just because we're taking over the DTC and we are having more owned stores running which are really over performing and driving not only the business also the ASP and. Obviously, the rollout will continue although the campaigns, we are running in greater China. Doing very very well. The growing capacities, we have I mean, we can. Constantly supporting demand and delivering into the country. It's very positive. Yeah.

China Chinese: The expansion in greater. Greater China lineup now gives us also. Just because we're taking over the DTC and we are having more owned stores running which are really over performing and driving not only the business also the ASP and. Obviously, the rollout will continue although the campaigns, we are running in greater China. Doing very very well. The growing capacities, we have I mean, we can. Constantly supporting demand and delivering into the country. It's very positive. Yeah.

China Chinese: Greater China lineup now gives us also. Just because we're taking over the DTC and we are having more owned stores running which are really over performing and driving not only the business also the ASP and. Obviously, the rollout will continue although the campaigns, we are running in greater China. Doing very very well. The growing capacities, we have I mean, we can. Constantly supporting demand and delivering into the country. It's very positive. Yeah.

China Chinese: Just because we're taking over the DTC and we are having more owned stores running which are really over performing and driving not only the business also the ASP and. Obviously, the rollout will continue although the campaigns, we are running in greater China. Doing very very well. The growing capacities, we have I mean, we can. Constantly supporting demand and delivering into the country. It's very positive. Yeah.

Speaker Change: Thank you. The next question is coming from Paul <unk> from Citi. Paul Your line is live.

Paul: Okay. Thank God I'm curious what surprised you if anything on a regional basis, both positive and negative and maybe how does that shape, how you're thinking about growth.

China Chinese: Obviously, the rollout will continue although the campaigns, we are running in greater China. Doing very very well. The growing capacities, we have I mean, we can. Constantly supporting demand and delivering into the country. It's very positive. Yeah.

China Chinese: Doing very very well. The growing capacities, we have I mean, we can. Constantly supporting demand and delivering into the country. It's very positive. Yeah.

China Chinese: The growing capacities, we have I mean, we can. Constantly supporting demand and delivering into the country. It's very positive. Yeah.

Paul: He then in F. 'twenty four maybe if you can talk about.

China Chinese: Constantly supporting demand and delivering into the country. It's very positive. Yeah.

Paul: Which regions will come on the higher end of that 70% to 80% growth rate that you guided to versus the lower end or below.

China Chinese: It's very positive. Yeah.

China Chinese: Yeah.

Operator: Thank you. The next question is coming from Randy [inaudible] from Jefferies. Randy, your line is live.

Paul: Provide by region.

Speaker Change: Thanks for your question.

Speaker Change: <unk>.

Speaker Change: Speak to.

Speaker Change: Randy, your line is live, please check your mute button.

Speaker Change: Geographies Europe and America.

Speaker Change: More or less growing on the same speed, which is very encouraging because it shows that even in <unk>.

Unknown: Can you hear me now?

Operator: Yes, go ahead sir.

Unknown: Alright, sorry about that. Thank you. Question back to David, you talked about a flat market in '23, just want to get your perspective on your thought process on the market overall for '24. It sounds like you're thinking a little bit more challenging so maybe just give us a little more specific there of how you're thinking about it. And then as you think about just the opportunity from a wholesale perspective, what's the opportunity you're thinking through from a door count expansion potential if at all and then how are you thinking about what's gone on with the order patterns? Are the accounts on the wholesale side kind of taking on more SKUs, more units volume of existing SKUs? Just give us a little bit more flavor of how you're seeing the overall market in the Americas this coming year as well as different opportunities for door count and order growth. Thanks.

Randy: Question back to David you talked about a flat market in 'twenty three. Just wanted to get your perspective on. Your thought process on the market overall for 24, it sounds like Youre thinking a little bit more challenging so maybe just give us a little more specific there of how youre thinking about it. And then as you think about just the opportunity from. You have a wholesale perspective. What's the opportunity you're thinking through from a door count expansion potential if at all and then how are you thinking about what's gone on with the order patterns. Are the accounts on the wholesale side. Kind of taking on more skus more units volume of existing Skus just just. Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

Speaker Change: The traditional markets. We are growing very very strong you have to keep in mind that our capacity is still very limited that's why we didn't.

Speaker Change: Just wanted to get your perspective on. Your thought process on the market overall for 24, it sounds like Youre thinking a little bit more challenging so maybe just give us a little more specific there of how youre thinking about it. And then as you think about just the opportunity from. You have a wholesale perspective. What's the opportunity you're thinking through from a door count expansion potential if at all and then how are you thinking about what's gone on with the order patterns. Are the accounts on the wholesale side. Kind of taking on more skus more units volume of existing Skus just just. Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

David: Your thought process on the market overall for 24, it sounds like Youre thinking a little bit more challenging so maybe just give us a little more specific there of how youre thinking about it. And then as you think about just the opportunity from. You have a wholesale perspective. What's the opportunity you're thinking through from a door count expansion potential if at all and then how are you thinking about what's gone on with the order patterns. Are the accounts on the wholesale side. Kind of taking on more skus more units volume of existing Skus just just. Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

Speaker Change: Have enough product to further on the unit side further push more into.

Speaker Change: By region, So that's why otmar.

David: And then as you think about just the opportunity from. You have a wholesale perspective. What's the opportunity you're thinking through from a door count expansion potential if at all and then how are you thinking about what's gone on with the order patterns. Are the accounts on the wholesale side. Kind of taking on more skus more units volume of existing Skus just just. Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

Speaker Change: Reaching this only growing by 27%.

David: You have a wholesale perspective. What's the opportunity you're thinking through from a door count expansion potential if at all and then how are you thinking about what's gone on with the order patterns. Are the accounts on the wholesale side. Kind of taking on more skus more units volume of existing Skus just just. Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

Speaker Change: But in the near future. Once we have positive are up and running and the improvements in the other factories in <unk> and in a recurrent Portugal.

David: What's the opportunity you're thinking through from a door count expansion potential if at all and then how are you thinking about what's gone on with the order patterns. Are the accounts on the wholesale side. Kind of taking on more skus more units volume of existing Skus just just. Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

David: Are the accounts on the wholesale side. Kind of taking on more skus more units volume of existing Skus just just. Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

Speaker Change: And then we will be able to fulfill much better the very very strong demand in China in my region as a whole.

David: Kind of taking on more skus more units volume of existing Skus just just. Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

David: Just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth. Sure.

Speaker Change: <unk> can give you some some.

Speaker Change: Color on this optimized my explanation.

Speaker Change: One thing and you asked for downsides to be Super Super honest, we underestimated the inflationary effects. So if you if you try to understand the bridge from.

David: Sure.

David Kahan: Sure. And just to start, just a reminder, it's not demand driven from the wholesale side. Everything we do is completely allocated from our side so it really becomes more of a self fulfilling prophecy. What I would say is, the US consumer I've said before is somewhat fragile, but is resilient and it is a bit counterintuitive because the more the buying power of the consumer has been constrained the more it's been focused on those products that they most covet and demand and we are one of the few real key intentional purchases that people are searching for. And I think they're searching with even more vigor than ever before for those few brands that are really important to them. So we can really manage and dictate a lot more of what you see at wholesale than you've ever seen before.

David: It's not demand driven from the wholesale side everything we do is completely allocated from our side. So it really becomes more of a self fulfilling prophecy, what I would say is. The U S consumer I've said before is somewhat fragile, but you know it is.

Speaker Change: 'twenty two numbers with a 35% margin going to our outlook, which is conservative. Please have in mind, our conservative outlook for 'twenty four.

Speaker Change: We come back we come to a 30% so the bridge from the 35 to 30.

David: The U S consumer I've said before is somewhat fragile, but you know it is.

David: resilient and it is a bit counterintuitive because the more the buying power of the consumer has been constrained the more it's been focused on those products that they most covet and demand and we are one of the few real key intentional purchases that people are searching for.

Speaker Change: We didnt manage enough price increases in 'twenty two.

Speaker Change: They were fully in.

Speaker Change: Our books in 'twenty two that's why we had this outstanding margins than the inflation on 23 kicked in and we are.

Speaker Change: We lost more or less like two 5% due to this inflation impact and we cannot adjust the pricing.

And I think they're searching with even more vigor than ever before for those few brands that are really important to them. So we can really manage and dictate a lot more of what you see at wholesale than you've ever seen before. Having said that, we're not going to compromise our discipline in any way. There is no real significant door count expansion, except where we think we may have some underserved markets or underserved end users, but suffice to say everything we do will still be done with the highest level of maintaining relative scarcity and a bit of what I would say unrequited demand, which becomes quite frankly a demand flywheel. I mean, the more that we do put into the market, the higher the demand keeps expanding.

Speaker Change: Between the year. So we need that these like 10 to 12 months in advance to prepare ourselves for price increases that's what we're doing this year again, so the inflation will be and that's really like the question Mark here for the 24 number how big will the inflation come back again in 'twenty four.

David: Having said that we're not going to compromise our disciplined in any way there is no real significant door count expansion, except where we think we may have some underserved markets or underserved end users, but suffice to say everything we do will still be done with the <unk>. This level of maintaining relative scarcity and a bit of what I would say unrequited demand, which becomes quite frankly. Demand flywheel I mean, the more that we do put into the market the higher the demand keeps expanding.

Having said that, we're not going to compromise our discipline in any way. There is no real significant door count expansion, except where we think we may have some underserved markets or underserved end users, but suffice to say everything we do will still be done with the highest level of maintaining relative scarcity and a bit of what I would say unrequited demand, which becomes quite frankly a demand flywheel. I mean, the more that we do put into the market, the higher the demand keeps expanding.

Speaker Change: Sure.

Speaker Change: We know that otherwise, we'll digest some of this.

Speaker Change: Our margin so.

Just roughly from 'twenty two to 'twenty, three we lost $2 five due to inflation.

David: This level of maintaining relative scarcity and a bit of what I would say unrequited demand, which becomes quite frankly. Demand flywheel I mean, the more that we do put into the market the higher the demand keeps expanding.

Speaker Change: Margin points.

Speaker Change: 250 basis points.

Speaker Change: The inflation with further cost us.

David: Demand flywheel I mean, the more that we do put into the market the higher the demand keeps expanding.

Speaker Change: Our calculation at the moment 120 basis point in 2004, and 120 basis points, the idle cost of positive vibe or the whole factory rearrangement setup right.

David:

David: I'd say we're expanding but with extreme discipline and we're also based on the incredible momentum we've had in direct to consumer, we're fluid even in the middle of a quarter, in the middle of a month, we're able to steer available product wherever we think that the highest return and most benefit will be. If you look at some of the numbers from the past few quarters, that reflects real time movement of inventory to capture demand where we think we can best manifest it.

Based on the incredible momentum we've had in direct to consumer where fluid even in the middle of a quarter in the middle of the month, we're able to year available product wherever we think that the highest return and most benefit will be if you look at some of the numbers from the past few quarters. That reflects real time movement of inventory to capture demand, where we think we can best manifested.

Speaker Change: So Klaus will follow up with some China Chinese.

Klaus: Hello, Paul Clouds here just for your question about the positive surprising effect.

Klaus: <unk> expansion.

Paul Clouds: Greater China up model gives us the victory.

Paul Clouds: Just because we're taking over the DTC and we are having more owned stores running which are really over performing and driving not only the business also the ISP and.

David: That reflects real time movement of inventory to capture demand, where we think we can best manifested.

Paul Clouds: Obviously, the rollout will continue although the campaigns, we are running in greater China.

Operator: Thank you. The next question will come from Simeon Siegel from BMO Capital Markets. Simeon, your line is now live.

Paul Clouds: Doing very very well.

Paul Clouds: The growing capacities, we have I mean, we can.

Simeon Siegel: Thanks. Hi everyone. Happy new year. So congrats on a really strong gross margin this quarter. Can you speak to maybe the drivers there a little bit more and how to think about that across the year ahead embedded within the guide? And then just if you can remind us within B to B what percent of sales now are driven by distributor versus more traditional wholesale and any way to think about the distributor model going forward. Thanks everyone.

Paul Clouds: Constantly supporting.

Simeon Siegel: So congrats on a really strong gross margin. This quarter can you speak to maybe the drivers there a little bit more and how to think about that across the year ahead embedded within the guide and then just if you can remind us within b to B what percent of sales now are driven by distributor versus more traditional wholesale and any way to think about the distributor model going forward. Thanks, everyone.

Paul Clouds: Demand and delivery into the countries.

Paul Clouds: It's very positive.

Paul Clouds: Yeah.

Speaker Change: Thank you. The next question is coming from Randy <unk> from Jefferies. Randy Your line is live.

Speaker Change: Randy Your line is live please check your mute button.

Alexander Hoff: Thanks for the question Simeon. This is Alexander and I will take that over. So our Q4 of this year is up a little bit. It is influenced by positive as well as negative effects. We saw a really strong A&P. Colleagues from the sales had already touched on that so we see great performance in our higher price point product. B to C penetration is a little off. We took some pricing. We had some American share, which was over proportional, especially in B to C and all of that drives our gross margin. Then we had some negative effects on the FX side, because last year there was roughly parity of US dollar, Euro that gave some overall an increase in gross margin. This 65 is clearly also coming from a really strong B to C penetration this specific quarter. So this is nothing that we guide for the future. I think we also touched on that '24 number where we see some kicking in effects from the capacity expansion, so clearly, we will see that in combination with the inflation, which will bring some slight headwinds to gross margin.

Randy: Can you hear me now.

Randy: Go ahead Sir.

Alex: So our Q4 of this year. It is off a little bit. As influenced by positive <unk> negative effects.

Randy: Alright, sorry about that thank you I guess a question back to David you talked about a flat market in 'twenty three.

Alex: It is off a little bit. As influenced by positive <unk> negative effects.

Alex: As influenced by positive <unk> negative effects.

Alex: For a really strong A&P. Colleagues from the fans had already touched on that we see great performance in our higher price point product. DTC penetration is a little off we took some pricing. We had. America share, which both over proportional, especially at <unk> and all of that drives our gross margin. Then we had some negative effects on the FX side, because last year there was. Roughly parity of U S dollar of others Euro that gave some <unk>, but overall an increase in. Gross margin. This 65 is clearly also coming.

David: Wanted to get your perspective on.

Alex: Colleagues from the fans had already touched on that we see great performance in our higher price point product. DTC penetration is a little off we took some pricing. We had. America share, which both over proportional, especially at <unk> and all of that drives our gross margin. Then we had some negative effects on the FX side, because last year there was. Roughly parity of U S dollar of others Euro that gave some <unk>, but overall an increase in. Gross margin. This 65 is clearly also coming.

Speaker Change: Your thought process on the market overall for 24, it sounds like Youre thinking a little bit more challenging so maybe just.

Speaker Change: Because it's a little more specific there of how youre thinking about it.

DTC penetration is a little off we took some pricing. We had. America share, which both over proportional, especially at <unk> and all of that drives our gross margin. Then we had some negative effects on the FX side, because last year there was. Roughly parity of U S dollar of others Euro that gave some <unk>, but overall an increase in. Gross margin. This 65 is clearly also coming.

Speaker Change: And then as you think about just the opportunity from.

Alex: We had. America share, which both over proportional, especially at <unk> and all of that drives our gross margin. Then we had some negative effects on the FX side, because last year there was. Roughly parity of U S dollar of others Euro that gave some <unk>, but overall an increase in. Gross margin. This 65 is clearly also coming.

Alex: America share, which both over proportional, especially at <unk> and all of that drives our gross margin. Then we had some negative effects on the FX side, because last year there was. Roughly parity of U S dollar of others Euro that gave some <unk>, but overall an increase in. Gross margin. This 65 is clearly also coming.

Speaker Change: We have a wholesale perspective.

Speaker Change: What's the opportunity you're thinking through from a door count expansion potential if at all and then how are you thinking about what's gone on with order patterns.

Alex: Then we had some negative effects on the FX side, because last year there was. Roughly parity of U S dollar of others Euro that gave some <unk>, but overall an increase in. Gross margin. This 65 is clearly also coming.

Speaker Change: Are the accounts on the wholesale side.

Alex: Roughly parity of U S dollar of others Euro that gave some <unk>, but overall an increase in. Gross margin. This 65 is clearly also coming.

Speaker Change: Kind of taking on more skus more units volume of existing Skus, just just give us a little bit more flavor of how youre seeing the overall market in the Americas, This coming year as well as different opportunities for door count and order growth.

Alex: Gross margin. This 65 is clearly also coming.

Alex: This 65 is clearly also coming.

Alex: B to C penetration this specific quarter. So this is nothing that we guide for the future. I think we also touched on that '24 number where we see some kicking in effects from the capacity expansion, so clearly, we will see that in combination with the inflation, which will bring some slight headwinds to gross margin.

Alex: Our strategy to see penetration this specific quarter. So this is nothing won't be guide for the future. I think we also touched all of that 24 number where we see some kick. Kicking in effects from the capacity expansion. Clearly, we will see that in combination with the inflation, which will bring some slight headwinds to gross margin. Okay. On the distributor piece.

Speaker Change: Sure and <unk>.

Speaker Change: Just to start just a reminder.

Alex: I think we also touched all of that 24 number where we see some kick. Kicking in effects from the capacity expansion. Clearly, we will see that in combination with the inflation, which will bring some slight headwinds to gross margin. Okay. On the distributor piece.

Speaker Change: It's not demand driven from the wholesale side everything we do is completely allocated from our side. So it really becomes more of a self fulfilling prophecy, what I would say is.

Alex: Kicking in effects from the capacity expansion. Clearly, we will see that in combination with the inflation, which will bring some slight headwinds to gross margin. Okay. On the distributor piece.

Alex: Clearly, we will see that in combination with the inflation, which will bring some slight headwinds to gross margin. Okay. On the distributor piece.

Speaker Change: The U S consumer I've said before is somewhat fragile, but you know.

Okay. On the distributor piece.

Alex: On the distributor piece.

Speaker Change: Is resilient and it is a bit counter intuitive because the more the buying power of the consumers has been constrained the more it's been focused on those products that they most carpet and demand and we are one of the few real key intentional purchases that people are searching for.

Nico Bouyakhf: Hey, this is Nico. So for Europe, as you know, traditionally we were putting a distributor heavy market along our transformation plan. We exited many distributors in fact, we've come down from 10 distributors to five over the course of the last two years. The remaining big distributors are Italy, Turkey, and some small distributors around Greece. They will remain as we look forward into the next two or three years. In Italy it's worth mentioning that we do own our own DTC, so the DTC channel is owned by us and the distributor is serving the wholesale part simply because we believe Italy is quite complex in regards of distribution and we are very careful with entering a market. The recently transformed distributor markets for Europe are Benelux. We just opened our office in Amsterdam and set up there. The recently taken back markets generally are over proportionately performing well delivering over proportionate growth in regards of topline.

Speaker Change: And I think thats searching with even more vigor than ever before for those few brands that are really important to them. So we can really manage and dictate a lot more of what you see at wholesale than you've ever seen before.

Nicole: Turkey, and some small distributors around Greece. They will remain as we look forward into the next two or three years in Italy. It's worth mentioning that we do own our own DTC. So the DTC channel is owned by us and the distributor. Yeah. Yeah.

Nicole: They will remain as we look forward into the next two or three years in Italy. It's worth mentioning that we do own our own DTC. So the DTC channel is owned by us and the distributor. Yeah.

Nicole: It's worth mentioning that we do own our own DTC. So the DTC channel is owned by us and the distributor. Yeah.

Speaker Change: Having said that we're not going to compromise our disciplined in any way there is no real significant door count expansion, except where we think we may have some underserved markets or underserved end users, but suffice to say everything we do will still be done with the <unk>.

Nicole: Yeah.

Nicole: serving the wholesale part simply because we believe Italy is quite complex in regards of distribution and we are very careful with entering a market. The recently transformed distributor markets for Europe are Benelux. We just opened our office in Amsterdam and set up there. The recently taken back markets generally are over proportionately performing well delivering over proportionate growth in regards of topline. Speaking for [inaudible], the remaining distributors we work with is Australia, and Taiwan. Obviously with Australia, we have a long relationship, it's a very good distributor and all of our distributor shares are also coming down.

serving the wholesale part simply because we believe Italy is quite complex in regards of distribution and we are very careful with entering a market. The recently transformed distributor markets for Europe are Benelux. We just opened our office in Amsterdam and set up there. The recently taken back markets generally are over proportionately performing well delivering over proportionate growth in regards of topline.

Nicole: We are very careful with entering a market. The recently transformed distributor markets for Europe are. Benelux, we just opened our office in Amsterdam, and set up there. The recently taken back markets generally over proportionately are performing well.

Nicole: Benelux, we just opened our office in Amsterdam, and set up there. The recently taken back markets generally over proportionately are performing well.

Speaker Change: This level of maintaining relative scarcity and a bit of what I would say unrequited demand, which becomes quite frankly.

Speaker Change: Demand flywheel I mean, the more that we do put into the market the higher the demand keeps expanding.

Nicole: Delivering over proportionate growth in regards of topline. Speaking for asthma. The remaining distributors we work with. Australia, and Taiwan, obviously with Australia, we have a long relationship it's a very good distributor and. All of all the. Do the shares also coming down. Thank you.

Nicole: Speaking for asthma. The remaining distributors we work with. Australia, and Taiwan, obviously with Australia, we have a long relationship it's a very good distributor and. All of all the. Do the shares also coming down. Thank you.

Speaker Change: <unk>.

The remaining distributors we work with. Australia, and Taiwan, obviously with Australia, we have a long relationship it's a very good distributor and. All of all the. Do the shares also coming down. Thank you.

Speaker Change: I'd say, we're expanding but with extreme discipline and we're also.

Oliver Reichert: Speaking for [inaudible], the remaining distributors we work with is Australia, and Taiwan. Obviously with Australia, we have a long relationship, it's a very good distributor and all of our distributor shares are also coming down.

Nicole: Australia, and Taiwan, obviously with Australia, we have a long relationship it's a very good distributor and. All of all the. Do the shares also coming down. Thank you.

Speaker Change: Based on the incredible momentum we've had in direct to consumer where fluid even in the middle of a quarter in the middle of the month, where ample to year available product wherever we think that the highest return and most benefit will be if you look at some of the numbers in the past few quarters.

Nicole: All of all the. Do the shares also coming down. Thank you.

Nicole: Do the shares also coming down. Thank you.

Speaker Change: Thank you.

Operator: And the next question is coming from Sam Poser from Williams Trading. Sam, your line is live.

Speaker Change: That reflects real time movement of inventory to capture demand, where we think we can best manifested.

Sam Poser: Thank you guys for taking my questions. So I just want to clarify three things. One, David, what kind of change have you seen in the underlying US demand for your product and then how are you managing that?

Sam Poser: So I just want to clarify two things. Three things one David have you seen any have you what kind of change have you seen in the underlying U S demand for your product.

Sam Poser: Three things one David have you seen any have you what kind of change have you seen in the underlying U S demand for your product.

Speaker Change: Thank you. The next question will come from Simeon Siegel from BMO capital markets. Your line is live.

Sam Poser: And then. And then how are you managing that. Sam Thanks.

Sam Poser: And then how are you managing that. Sam Thanks.

Simeon Siegel: Thanks, everyone happy new year.

Simeon Siegel: So congrats on a really strong gross margin. This quarter can you speak to maybe the drivers there a little bit more on how to think about that across the year ahead embedded within the guide and then just if you can remind us within <unk> what percent of sales now are driven by distributor versus more traditional wholesale and any way to think about the distributor model going forward. Thanks, everyone.

Speaker Change: Sam Thanks.

David Kahan: Sam, thanks. I use the term the demand flywheel and it really makes a lot of sense. The more product we continually put into the market, as long as we do it in a disciplined manner, leads to more demand. So demand is not a finite measure, demand keeps going up higher. The higher we increase our top line revenue, the more demand keeps outstripping it, so we're learning more and more about how infinite that demand really is especially as we start to connect with different end user groups. And that's why that example of like the same shoe just used in a recovery environment opens up a whole new end use for us. That's the perfect example we gave of how exponential the demand really is. Thank you. That does conclude today's Q&A session. I will now turn the call back to Oliver Reichter for closing remarks.

Thanks for the question for me and this is Alex and I will take that over.

Speaker Change: The higher we increased our top line revenue more demand keeps outstripping it.

Alex: So our Q4 of this year.

Alex: It is off a little bit.

Speaker Change: So we're learning more and more about how infinite that demand really is especially as we start to connect with different end user groups and Thats. Why that example of like the same shoe just used in a recovery environment opens up a whole new end use for us that's the perfect.

Alex: As influenced by positive as well as negative effects.

Alex: We saw a really strong A&P.

Alex: Colleagues from SaaS had already touched on that we see great performance in our higher price point product.

Alex: DTC penetration with a little off we took some pricing.

Speaker Change: Well, we gave of how exponential the demand really is. Thank you that does conclude today's Q&A session I will now turn the call back to Oliver <unk> for closing remarks.

Alex: We had.

Some from America share, which both over proportional, especially in DTC and all of that drives our gross margin.

Operator: Thank you. That does conclude today's Q&A session. I will now turn the call back to Oliver Reichert for closing remarks.

Speaker Change: Thank you that does conclude today's Q&A session I will now turn the call back to Oliver <unk> for closing remarks.

Then we had some negative effects on the FX side, because last year there was.

Oliver Reichert: Okay. Thank you for joining us on this call. Overall, we are very pleased with our fiscal '23 results. Thanks to the team, we have never been better positioned for both near and long term financial performance. We believe that once we develop our capacity that we will continue on our path. Also on the margin side, this will definitely be the case so you shouldn't worry about this. Our outlook overall is very positive and hopefully you will join us in our Q1 call and then you will understand what I'm talking about. So enjoy the day, have a nice day and thanks to the team on both sides. Thank you very much. Bye bye.

Alex: Roughly parity you asked all of other euro that gave some <unk>, but overall an increase in.

Oliver: Thank you for joining us on this call overall, we are very pleased with our fiscal 'twenty three results. Thanks to the team. It's never been better positioned for both near and long term financial performance, we believe that once we <unk>. Our capacity. That will continue. Continue our our path also on the on the margin side. This will definitely be the case so. Shouldn't worry about this outlook our outlook overall is very positive and. And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Speaker Change: Thanks to the team. It's never been better positioned for both near and long term financial performance, we believe that once we <unk>. Our capacity. That will continue. Continue our our path also on the on the margin side. This will definitely be the case so. Shouldn't worry about this outlook our outlook overall is very positive and. And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Alex: Gross margin.

Alex: <unk> 65 is clearly also coming.

Speaker Change: It's never been better positioned for both near and long term financial performance, we believe that once we <unk>. Our capacity. That will continue. Continue our our path also on the on the margin side. This will definitely be the case so. Shouldn't worry about this outlook our outlook overall is very positive and. And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Alex: Tom.

Alex: Strong agency penetration this specific quarter slow business nothing won't be guide for the future.

Speaker Change: Our capacity. That will continue. Continue our our path also on the on the margin side. This will definitely be the case so. Shouldn't worry about this outlook our outlook overall is very positive and. And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Alex: I think we also touched all of that 24 number where we see some kicking.

Speaker Change: That will continue. Continue our our path also on the on the margin side. This will definitely be the case so. Shouldn't worry about this outlook our outlook overall is very positive and. And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Speaker Change: Continue our our path also on the on the margin side. This will definitely be the case so. Shouldn't worry about this outlook our outlook overall is very positive and. And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Alex: Kicking in effects from the capacity expansion.

Speaker Change: This will definitely be the case so. Shouldn't worry about this outlook our outlook overall is very positive and. And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Alex: Clearly, we will see that in combination with the inflation, which will bring some slight headwinds to gross margin.

Speaker Change: Shouldn't worry about this outlook our outlook overall is very positive and. And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Alex: Okay.

Speaker Change: And. Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Alex: On the distributor piece.

Speaker Change: Hopefully you will. Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Speaker Change: Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Alex: This is Nicole so for Europe as you know we traditionally we were pretty distributed heavy market along our transformation plan. We exited many distributors in fact, we've come down from 10 distributors two five over the course of the last two years the remaining distributors big distributors are Italy.

Speaker Change: Have a nice day and thanks to the team on both sides. Thank you very much bye bye.

Operator: Thank you. This does conclude today's conference. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Turkey, and some smaller distributors around Greece.

Nicole: They will remain as we look forward into the next two or three years in Italy.

Nicole: Worth mentioning that we do own our own DTC. So the DTC channel is owned by us and the distributor serving.

Nicole: The wholesale part simply because we believe Italy is quite complex in regards of distribution.

Nicole: We are very careful with entering a market. The recently transformed distributor markets for Europe are.

Nicole: Benelux, we just opened our office in Amsterdam, and I'll set up there. The recently taken back markets generally over proportionately performing well.

Nicole: Flipping over proportionate growth in regards of topline.

Nicole: Speaking for asthma.

Nicole: The remaining distributors we work with.

Trailing <unk> in Taiwan, obviously with Australia, we have a long relationship is a very good distributor.

Nicole: <unk>.

Nicole: But all of all the.

Nicole: Do the shares also coming down.

Speaker Change: Thank you.

Speaker Change: The next question is coming from Sam Poser from Williams trading Sam Your line is nice.

Sam Poser: Thank you guys for taking my questions.

Sam Poser: So I just want to clarify two things.

Sam Poser: Two things one David have you seen any.

Sam Poser: What kind of change have you seen in the underlying U S demand for your product.

Sam Poser: And then.

Sam Poser: And then how are you managing that.

Speaker Change: Sam Thanks.

Speaker Change: I I use the term the demand flywheel and it really makes a lot of sense. The more product we continually put into the market as long as we do it in a disciplined manner leads to more demand. So demand is not a finite measure demand keeps going up the higher.

Speaker Change: The higher we increase our top line revenue more demand keeps outstripping. It. So we're learning more and more about how infinite that demand really is especially as we start to connect with different end user groups and Thats why that example of like the same.

Speaker Change: <unk> just used in a recovery environment opens up a whole new end use for us. That's the perfect example, we gave of how exponential the demand really is.

Speaker Change: Thank you protect US conclude today's Q&A session I will now turn the call back to Oliver <unk> for closing remarks.

Oliver: Okay. Thank.

Oliver: Thank you for joining us on this call overall, we are very pleased with our fiscal 'twenty three results.

Speaker Change: Thanks to the team.

Speaker Change: It has never been better positioned for both near and long term financial performance, we believe that once we.

Speaker Change: Develop our capacity.

Speaker Change: That will continue.

Speaker Change: Continue our our path also on the on the margin side.

Speaker Change: This will definitely be the case so.

Speaker Change: Shouldn't worry about this outlook our outlook overall is very positive and.

Speaker Change: And.

Speaker Change: Hopefully you will.

Speaker Change: Join us in our Q1 call and then you will understand what I'm talking about so enjoy the day.

Speaker Change: Have a nice day and thanks to the team on both sides. Thank you very much bye bye.

Speaker Change: Thank you. This does conclude today's conference you may disconnect at this time and have a wonderful day. Thank you for your participation.

Q4 2023 Birkenstock Holding PLC Earnings Call

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