Randy Konik

Randy Konik of Jefferies Financial Group Inc. questioned Birkenstock's channel growth dynamics, noting B2B's 21% growth versus D2C's 12% in fiscal 2025, and asked about expectations for 2026 channel growth, strategies to accelerate D2C, and whether the B2B/D2C growth rate spread would widen or narrow.

Answer

CFO Ivica Krolo explained that the shift to in-person, multi-brand retail, particularly among youth, favors B2B, which offers strong margins and acts as effective marketing. He stated that both channels are expected to grow double-digit in constant currency, with B2B continuing to outpace D2C. D2C acceleration focuses on expanding the store fleet (40 new stores in 2026), loyalty programs, and exclusive content.

Randy Konik asked for a qualitative hindsight on Q4 last year, focusing on assortment gaps and lab-grown diamond penetration, and how that informs this year's Q4. He also asked about management's instructions for holiday execution and future strategic changes to the balance between bridal and fashion categories, including capital allocation for core brands.

Answer

COO and CFO Joan Hilson stated that last year's Q4 had assortment gaps in gift-giving price points, particularly under $1,000, and lacked lab-grown diamond penetration in fashion. She highlighted that this year, lab diamonds are 40% of bridal and 15% of fashion sales, closing those gaps. CEO J.K. Symancyk emphasized simplifying value propositions, streamlining promotions, ensuring inventory depth, and focusing on conversion for the holiday. He noted that while bridal dominance will be maintained, fashion offers outsized growth opportunities, potentially shifting the mix over time.

Randy Konik asked for a qualitative hindsight on Q4 last year, specifically how the quarter played out and how it informs this year's Q4. He also inquired about management's instructions for teams to execute the holiday season successfully and Signet's long-term strategy regarding the balance between bridal and fashion categories and capital allocation.

Answer

COO and CFO Joan Hilson stated that last year's Q4 had assortment gaps in key gift-giving price points, particularly under $1,000, and lacked lab-grown diamond penetration. This year, LGDs are 40% of bridal and 15% of fashion, with strong inventory depth in key styles. She noted consistent conversion and stronger brick-and-mortar traffic. CEO J.K. Symancyk emphasized simplifying messages and streamlining promotions for the critical December period, focusing on inventory availability and conversion. He affirmed maintaining dominance in bridal while pursuing outsized growth opportunities in the underdeveloped fashion category, with further strategic capital allocation discussions planned post-holiday.

Randy Konik inquired about the strategic hopes for SharkNinja's new design center in New York, how it integrates with the existing global infrastructure to foster innovation, and the company's long-term international growth strategy, including the target proportion of international business and key opportunities. He also asked CFO Adam Quigley about the future drivers of gross margin expansion.

Answer

CEO Mark Barrocas explained the New York design center is a talent magnet for creative, design, PR, media, and social media, similar to the London engineering office, fostering collaboration across global teams. For international growth, he noted the successful replication of SharkNinja's model globally, with excitement for Europe, Latin America, and continued U.K. growth, targeting 50% of the business from outside the U.S. CFO Adam Quigley detailed that gross margin expansion is driven by structural changes, including product cost optimization through value engineering, supply chain diversification, and entry into new, higher-margin categories, ensuring durability.

Randy Konik inquired about the new design center's role in fostering innovation and strengthening the organization, asking how it integrates with SharkNinja's existing global infrastructure. He also asked about SharkNinja's international growth strategy, its target proportion of the total business, and key opportunities, and CFO Adam Quigley about the drivers for continued gross margin expansion in the coming years.

Answer

CEO Mark Barrocas explained that the new New York design center, similar to the London engineering office opened in 2014, will serve as a magnet for creative and design talent, enhancing SharkNinja's global 'chasing the sun' innovation approach. He stated that SharkNinja's model of disruptive innovation and viral marketing is successfully replicating globally, with strong excitement for Europe, Latin America, and continued growth in the U.K., reiterating the short-to-midterm target of having 50% of the business outside the U.S. CFO Adam Quigley added that gross margin expansion is driven by structural changes, including product cost optimization through value engineering, supply chain diversification, and entry into new, higher-margin categories.

Randy Konik of Jefferies inquired about Manchester United's strategy for monetizing its extensive content library and plans for increasing revenue from Old Trafford while maintaining affordable ticket prices for fans.

Answer

Philip Lynch, CEO of Media, explained that the integration of MUTV and the club app creates a simplified user experience, enabling better personalization and targeted monetization, including exploring blockchain offerings. CEO Richard Arnold added that stadium revenue growth is driven by maximizing seat occupancy through innovative ticket buy-back and donation programs and by catering to high demand for premium experiences, which helps keep general admission prices flat.

Randy Konik of Jefferies inquired about the impact of the new leadership structure on business operations and fan engagement, and also asked for an update on the commercial segment's return to normalcy across different geographies.

Answer

CEO Richard Arnold explained that the new structure empowers leaders to drive the club forward, with a core strategy centered on digitization. This includes stadium WiFi, digital-focused partnerships like Tezos, and deeper fan engagement. Regarding the commercial segment, Arnold noted that the team successfully pivoted to digital activations during the pandemic, which has maintained momentum and resulted in new partnerships and renewals, demonstrating the club's resilience.

Randy Konik of Jefferies asked for qualitative details on Cristiano Ronaldo's impact on fan engagement, kit sales, and other metrics. He also questioned how the club might leverage a star player for commercial partnerships and sought clarification on plans for the summer 2022 tour.

Answer

Group Managing Director Richard Arnold reiterated that it was too early to provide quantitative data on Ronaldo's impact, emphasizing the club's focus is on team performance and collective commercial strategy rather than singling out one player. CFO Cliff Baty clarified that his earlier comments on 'no summer tour' referred to the summer of 2021 (FY22). Arnold added that plans for the summer 2022 tour (FY23) are being evaluated but remain uncertain due to the ongoing pandemic.