Birkenstock Holding plc raised its full-year guidance for revenues and adjusted operating earnings after seeing adjusted EBITDA expaned 11 pecent in the fiscal third quarter ended June 30 with double-digit growth tallied across regions. On an analyst call, Oliver Reichert, CEO, said the gains were boosted by the continued expansion of its closed-toe business, led by newness in both clogs and shoes.

Revenue of €719.5 million in the quarter increased 13 percent on a reported basis and 15 percent in constant currency. Results topped analysts’ consensus estimates of $713.2 million. By channel, DTC revenue growth of 14 percent, 16 percent in constant currency. B2B revenue growth of 13 percent, 15 percent in constant currency.

DTC revenue growth outpaced B2B growth, accelerating to 14 percent on a reported basis and 16 percent in constant currency, driven by strength in both digital and in-store. The company added thirteen new own stores during the quarter, bringing the total number of own retail stores to 124 as of June 30, 2026.

B2B revenue grew 13 percent on a reported basis and 15 percent in constant currency, consistent with recent trends and supported by strong double-digit growth at key partner stores globally. The majority of this growth came from within existing doors driven by an expanded assortment of Birkenstock styles, high sales velocity and strong full-price realization.

Regional Performance

By region, sales grew 11 percent in the Americas on a reported basis (14 percent in constant currency).

“Youth retailers and sporting goods stores continue to lead B2B growth with sellout at key partners in these channels up above 20 percent year-over-year,” said Oliver Reichert, CEO of Birkenstock, of the Americas business. In DTC, the Americas region saw “very strong retail growth as we continue to open new stores to capture more in-person shopping demand in our own doors.” Birkenstock opened four new stores in the U.S., bringing the total to 21.

EMEA’s sales grew 15 percent on both a reported basis and in constant currency.

Reichert said EMEA saw a “strong acceleration in EMEA digital growth, capturing more demand in our own e-com channel. Closed-toe penetration was up 500 basis points, consistent with recent trends and in line with our goal to expand usage occasions for our footbed. Product mix contributed over half of the growth in ASP. We saw double-digit growth across all of our regions.”

He added that both online and in-store in the EMEA region saw strong full price realization of 93 percent. EMEA opened 4 stores during the quarter, bringing the total in EMEA to 50.

Sales in the APAC region were up 18 percent on a reported basis (23 percent in constant currency).

“APAC continued its high-quality and DTC-led growth, especially in China” said Reichert. “We accelerated the pace of retail expansion. We are on track to meet our target of approximately 140 doors by the end of fiscal ’26. Importantly, own retail revenue grew 50 percent in constant currency. Same-store sales were up high single digits.”

Excluding Australia, APAC growth on a currency-neutral basis was close to 30 percent. Australia’s growth in the quarter was impacted by a shift in quarterly cadence as a result of the distributor acquisition.

Said Reichert, “We are very confident in our APAC target for the full year. Importantly, we had over 50 percent growth in China, the country with the highest ASP, a testament to our high-quality premium brand positioning in the region. Within the APAC segment, we opened 5 new owned stores, bringing the total to 53.”

Product Performance

Reichert said product highlights in the quarter included the premium 1774 collection.  Introductions also included the Raffia, Canvas and premium leather executions in Naples, Boston, Arizona and Gizeh.

“We also collaborated most recently with Song for the Mute, Ader Error and Repetto, a very successful launch targeting the female-led and growing popularity of ballet flats,” said Reichert. “This global movement also resulted in a very strong demand for the Mary Jane style, Santa Clarita, one of the newest mainline silhouette launches. This once again demonstrates our ability to create a trend within our brand.”

Reichert said that while demand for the Boston “remains very strong,” other clog executions also “performed exceptionally well.” For example, the Naples grew by more than 4x the units sold year-over-year. Reichert said, “We also saw very strong growth in shoes, led by Utti, a lace-up moc-toe, which more than doubled in units sold year-over-year. Overall, non-Boston closed-toe executions were up more than 50 percent. About half of our top 20 silhouettes are closed-toe, including three that were introduced within the past three years.”

In the sandal business, the strongest growth was seen in its newest seasonal execution such as flowers, rivets, buckles, prints and textiles. Said Reichert, “Growth was especially strong in our Mayari, Madrid and Siena silhouettes. We highlight this newness most prominently within our DTC business, driving growth in our own channels.”

Profitability

Gross profit margin of 59.1 percent, down 140 basis points from 60.5 percent in the prior-year period primarily due to unfavorable currency translation (60 basis points), incremental U.S. tariffs (70 basis points) and product mix, partly offset by improved capacity absorption; The decrease is further driven by a 20 basis point impact from the mark-up to cost of sales associated with the acquisition of the long-standing distributor Birkenstock Australia Pty. Ltd., which closed on October 23, 2025

Adjusted gross profit margin of 59.2 percent, down 130 basis points from 60.5 percent in the prior year period primarily due to unfavorable currency translation (60 basis points), incremental U.S. tariffs (70 basis points) and product mix, partly offset by improved capacity absorption

Net profit of €110 million, down 15 percent year-over-year; EPS of €0.60 down 13 percent from €0.69 in the fiscal third quarter of 2025 mainly due to non-recurring, non-cash expenses associated with the accelerated share repurchase and the refinancing of the senior notes totaling €22 million

Excluding non-recurring, non-cash expenses, Adjusted net profit of €134 million, up 15 percent and Adjusted EPS of €0.74, up 19 percent year-over-year, although slightly lagging the consensus estimate of €0.76.

Adjusted EBITDA of €242 million, up 11 percent; Adjusted EBITDA margin of 33.7 percent, down 70 basis points from 34.4 percent in the prior year period, due to unfavorable currency translation (60 basis points) and incremental U.S. tariffs (70 basis points), partly offset by improved capacity absorption

Outlook

The company is raising its Fiscal 2026 revenue growth and Adjusted EBITDA guidance. Updated Fiscal 2026 guidance is as follows:

  • Revenue growth of 15 percent in constant currency (13-15 percent growth prior), resulting in reported revenue at the high end of €2,300-2,350 million
  • Adjusted EBITDA of at least €710 million, resulting in an Adjusted EBITDA margin of 30.2-30.5 percent (30.0-30.5 percent prior)
  • Adjusted gross profit margin of 57.0-57.5 percent (unchanged)
  • Tax rate of 30-31 percent (26-28 percent prior), primarily due to the non-deductible, non-cash expenses associated with refinancing and accelerated share repurchase (ASR)
  • Adjusted EPS of €1.90-2.05 (unchanged), inclusive of tariff, F/X, and tax impacts and the completed ASR
  • Capital expenditures in range of  €110-130 million (unchanged)
  • Net leverage ratio of approximately 1.6x-1.7x (1.3x-1.4x prior) due to the cash outflow related to the accelerated share repurchase

Image courtesy Birkenstock