Birkenstock Holding plc reported fiscal 2025 results that exceeded expectations, with total revenue rising 16% year‑over‑year to €2.1 billion and constant‑currency revenue growth of 18%. Diluted earnings per share for the fourth quarter reached $0.60, a $0.20 beat over the $0.40 consensus and a 92% year‑over‑year increase. The company’s guidance for fiscal 2026 revenue of €2.30–€2.35 billion falls short of the €2.39 billion consensus, while adjusted EBITDA guidance of at least €700 million is below the €757.8 million consensus.
The revenue lift was driven by robust demand for the brand’s premium closed‑toe sandals and clogs, especially in the Asia‑Pacific region where sales grew 31% reported and 34% constant‑currency. The closed‑toe segment’s share of revenue expanded as consumers shifted toward higher‑priced, fashion‑forward styles, while the company’s own‑retail footprint added new stores that helped offset headwinds in wholesale channels. These mix shifts contributed to a 59.1% gross profit margin, up from 57.5% in FY2024, reflecting pricing power and efficient cost management.
Margin performance remained strong, with adjusted EBITDA margin reaching 31.8% versus 30.5% a year earlier. The improvement was largely due to higher gross margins and disciplined operating expenses, even as the company faced currency translation losses and U.S. tariff impacts that pressured gross profit by 90 basis points in Q4. Management noted that the company’s cost‑control initiatives and selective inventory reductions helped preserve profitability amid rising input costs.
Looking ahead, Birkenstock cautions that fiscal 2026 growth will be moderated by capacity constraints and ongoing U.S. tariff exposure. The company expects constant‑currency revenue growth of 13–15% and an adjusted EBITDA margin of 30.0–30.5%, lower than the 31.8% achieved in FY2025. The guidance reflects management’s view that while consumer demand remains strong, production bottlenecks and currency volatility will limit the ability to scale revenue at the same pace as the previous year.
Investor sentiment has been tempered by the guidance downgrade, with analysts noting that the lower revenue and EBITDA outlook signals potential margin pressure and a slower growth trajectory. Management emphasized confidence in the brand’s long‑term trajectory, stating that “our brand remains a must‑have for consumers and we continue to capture market share through strategic retail expansion and a focus on closed‑toe offerings.”
CEO Oliver Reichert added, “We are proud to report very strong fiscal 2025 results, with constant‑currency revenue growth ahead of our target at 18% and an adjusted EBITDA margin at the high end of our guidance range. The brand’s popularity remains strong, and we are positioned to sustain double‑digit growth in 2026 despite the headwinds we face.”
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