Birkenstock Holding plc CEO Oliver Reichert said the company is off to a “very strong start” to Fiscal 2025 and now expects to be at the high end of previous guidance for revenue growth of 15 percent to 17 percent. His comments came as Birkenstock reported results for the company’s fiscal second quarter ended March 31, 2025.

Fiscal second quarter 2025 revenue amounted to €574 million, a 19 percent increase compared to the fiscal Q2 2024 on a reported basis and up 18 percent on a constant-currency (cc) basis.

Revenue growth was said to be supported by double-digit unit growth and mid-single-digit growth in Average Selling Price (ASP). Closed-toe shoes reportedly continued to outpace the strong double-digit growth of sandals, contributing to the higher ASP.

Business-to-business (B2B, Wholesale) revenue grew 19 percent (+18 percent cc) year-over-year, said to be supported by “strong sell-in” for the important Spring/Summer season of both sandals and closed-toe silhouettes.

As expected, direct-to-consumer (DTC) revenue growth accelerated in the quarter, up 19 percent (+17 percent cc) year-over-year. The company said double-digit growth in Digital sales and “very strong” retail performance contributed to the improved DTC trends.

The company opened six new owned stores during the fiscal second quarter of 2025, bringing the total number of owned retail stores to 77.

Regional Summary

The Americas segment delivered second quarter revenue growth of 23 percent (+20 percent cc). Both B2B and DTC reportedly grew at a strong double-digit pace. The company reported B2B growth was led by youth, sporting goods, outdoor, and department stores. During the quarter, the company opened a new store in Nashville, bringing the total number of its own stores in the Americas segment to 10 doors.

EMEA segment revenues grew 12 percent in both reported and constant-currency terms in the fiscal second quarter. DTC growth reportedly outpaced Wholesale growth during the second quarter, with strong growth in both Digital and Retail. The company opened new stores in London and Paris, bringing the total store count in the EMEA segment to 37 doors.

The APAC segment posted revenue growth of 30 percent in both reported and constant-currency terms in the second quarter. The company said it continues to invest in this important growth segment and seeks to increase brand awareness by expanding its physical presence. The company opened three new owned stores, bringing the total in APAC to 30 doors. Additionally, the company said it grew the number of mono-brand partner stores by 20 percent year-over-year.

Income Statement Summary
Gross profit margin amounted to 57.7 percent of revenue in Q2, up 140 basis points from 56.3 percent in the second quarter of 2024 due to sales price adjustments (net of input costs), better absorption of the new manufacturing capacity added in September 2023 and favorable currency translation.

Net profit was €105 million in Q2, or €0.56 per share, up 47 percent from €72 million, or EPS of €0.38 in the year-ago quarter.

Adjusted net profit was €103 million in Q2, up 33 percent from €77 million; Adjusted earnings per share were €0.55, up 34 percent from €0.41 in fiscal Q2 last year.

Adjusted EBITDA came in at €200 million, up 23 percent year-over-year, and Adjusted EBITDA margin was 34.8 percent of revenue, up 110 basis points from 33.7 percent in the prior-year fiscal Q2 period.

CapEx
Birkenstock said it invested approximately €21 million in capital expenditures in the second quarter of 2025, primarily to expand production capacity.

Balance Sheet Summary
Birkenstock ended the quarter with cash and cash equivalents of €235 million and net leverage of 1.8x as of March 31, 2025, in line with 1.8x at September 30, 2024, due to the normal seasonality in working capital.

The company said it remains committed to further deleveraging its balance sheet with free cash flow, targeting approximately 1.5x net leverage by the end of Fiscal 2025.

Cash flows used in operating activities were €18 million; operating cash flow was down €68 million year-over-year, primarily due to the timing of tax payments related to prior periods.

Outlook
Birkenstock now sees fiscal 2025 revenue growth at the high-end of previous guidance (+15-17 percent cc) and is increasing its adjusted EBITDA margin guidance to a range of 31.3 percent to 31.8 percent, 50 basis points above previous guidance, which implies an adjusted EBITDA target in the range of €660 million to 670 million, up 19 percent to 21 percent year-over-year.

“We expect that the tariff situation may create a unique shift in consumer behavior in the footwear category with a split between the few brands, like Birkenstock, who manage strong brand equity through relative scarcity and those who distribute their products with less discipline and pricing integrity,” offered Reichert. “We will navigate these uncertain times from a position of strength. Our decades-long track record of managing our brand through a consistent engineered distribution strategy puts Birkenstock in an enviable position to take additional shelf space and gain share. We are a brand with industry-leading growth, pricing power, clean inventories, strong profitability, global reach, a very healthy balance sheet and cash generation.”

Image courtesy Birkenstock Holding plc