Birkenstock Holding plc’s net earnings more than doubled in the fiscal first quarter ended December 31. Revenue grew 11 percent on a reported basis and 18 percent in constant-currency (cc) terms, exceeding the company’s fiscal 2026 guidance and driven by strength across segments, channels and categories. The Americas benefited from gains at “trendy youth retailers” and sports specialty stores.

Birkenstock’s fiscal 2026 guidance calls for growth of 13 percent to 15 percent in constant-currency terms. Results were in line with a pre-announcement provided in January.

Financial Highlights

  • Revenue of €402 million ($478 mm), an increase of 11.1 percent on a reported basis and 17.8 percent in constant currency.
  • Double-digit revenue growth in constant currency across all segments, which included 5 percent in the Americas on a reported basis (14 percent in constant currency), 16 percent in EMEA on a reported basis (17 percent in constant currency) and 28 percent in APAC on a reported basis (37 percent in constant currency).
  • B2B revenue growth of 18 percent (24 percent in constant currency) and DTC revenue growth of 4 percent (12 percent in constant currency).
  • Gross profit margin of 55.7 percent, down 460 basis points from 60.3 percent in the prior-year period, primarily due to unfavorable currency translation (220 basis points), incremental U.S. tariffs (130 basis points) and channel mix. The decrease was further driven by a 170-basis-point impact from the markup-to-cost-of-sales associated with the acquisition of the long-standing distributor Birkenstock Australia Pty. Ltd., which closed on October 23, 2025, and by channel mix. The decrease is partly offset by sales price adjustments (net of inflation) and improved capacity absorption.
  • Adjusted gross profit margin of 57.4 percent, down 290 basis points from 60.3 percent in the prior year period, primarily due to unfavorable currency translation (220 basis points), incremental U.S. tariffs (130 basis points) and channel mix, partly offset by sales price adjustments (net of inflation) and improved capacity absorption.
  • Net profit of €51 million ($61 mm), up 151 percent year-over-year; EPS of €0.27, up 157 percent from €0.11 in the first fiscal quarter of 2025; Adjusted net profit was up 47 percent, and Adjusted EPS was up 50 percent year-over-year.
  • Adjusted EBITDA of €106 million ($126 mm), up 4 percent year-over-year; Adjusted EBITDA margin of 26.5 percent, down 170 basis points from 28.2 percent in the prior year period, due to unfavorable currency translation (230 basis points) and incremental U.S. tariffs (130 basis points), partly offset by sales price adjustments (net of inflation) and improved capacity absorption.

Oliver Reichert, CEO of Birkenstock, said, “Our results for the first quarter of fiscal 2026 show the continued strong demand for our brand throughout the important holiday season. As we discussed during our Capital Markets Day in New York on January 28th, we believe we are a one-of-a-kind, purpose-driven brand with a huge runway for growth ahead. Our unique business model is designed for resilience. We presented our three-year plan, which calls for 13-to-15 percent revenue growth in constant currency and 30 percent+ EBITDA margin. Our vertically integrated supply chain means we are capacity-constrained by design. We will steer our business by geography, channel and product to maximize profit per pair and maintain strong brand equity.”

Birkenstock reported fiscal first-quarter 2026 revenue of €402 million, up 11 percent on a reported basis and 18 percent in constant currency compared with the first quarter of 2025. Birkenstock experienced robust holiday demand, especially for clogs, elevated shearling executions and other closed-toe shoes and boots.

B2B revenue grew 18 percent on a reported basis and 24 percent in constant currency, supported by strong holiday demand and sell-through. The majority of this growth came from within existing doors, driven by an expanded assortment of Birkenstock styles and very strong full-price sell-through at key partners. DTC revenue was up 4 percent on a reported basis and 12 percent in constant currency. The company further expanded its own-store footprint by adding nine new stores during the quarter, bringing the total to 106 as of December 31, 2025.

Regional Performance
In the Americas segment, Birkenstock delivered revenue growth of 5 percent on a reported basis and 14 percent in constant currency in the first quarter of 2026. The strong, double-digit constant-currency growth was led by the B2B channel, where the company continues to take share with key partners, especially emerging youth-focused retailers and sports specialty stores. The company opened one additional owned retail store, bringing the total in the Americas to 15.

In EMEA, revenue growth was 16 percent on a reported basis and 17 percent in constant currency. Similar to the Americas, the B2B channel led the growth in EMEA. The company opened three new owned retail stores, bringing the total in EMEA to 45.

In the APAC segment, Birkenstock achieved revenue growth of 28 percent on a reported basis and 37 percent on a constant currency basis. DTC growth in APAC outpaced B2B by over 2x, with strength in both online and own retail. The company opened five new owned retail stores, bringing the total in APAC to 46.

Balance Sheet Highlights
Birkenstock invested approximately €38 million in capital expenditures during the fiscal first quarter 2026, including approximately €18 million paid for the acquisition of the new site in Wittichenau.

Birkenstock ended the quarter with cash and cash equivalents of €229 million and net leverage of 1.7x as of December 31, 2025, compared to 1.5x as of September 30, 2025, due to typical cash seasonality.

Outlook
Birkenstock said it is maintaining its guidance for fiscal year 2026, ending September 30, 2026. The outlook calls for:

  • Revenue growth in constant currency of 13 percent to 15 percent, translating into reported revenue of EUR 2.30 billion to 2.35 billion, growth of 10 percent to 12 percent; currency translation headwind of approximately 300 to 350 basis points at an average EUR/USD exchange rate of 1.17.
  • Adjusted gross profit margin of 57.0 to 57.5, inclusive of approximately 100 basis points of headwind from currency translation and 100 basis points from incremental tariffs.
  • Adjusted EBITDA of at least EUR 700 million, implying an Adjusted EBITDA margin of 30.0 to 30.5, inclusive of approximately 100 basis points of headwind from currency translation and 100 basis points from incremental tariffs.
  • Effective tax rate of 26 to 28.
  • Adjusted EPS in the range of EUR 1.90 to 2.05, inclusive of approximately EUR 0.15 to 0.20 per share impact from currency translation but excluding the impact of potential share repurchases.
  • Capital Expenditures in the range of EUR 110 million to 130 million.
  • The company intends to repurchase shares for a total consideration of USD 200 million during fiscal 2026, subject to market conditions.
  • Targeted net leverage ratio at September 30, 2026, of 1.3x to 1.4x, excluding potential share repurchases.
  • The company expects to open approximately 40 new owned retail stores globally in fiscal 2026

Image courtesy Birkenstock