Birkenstock Holding plc reported fiscal second quarter global revenue amounted to €618 million, representing growth of 8 percent on a reported basis and 14 percent in constant-currency terms for the three-month period ended March 31. The growth was said to be within the company’s guidance of 13 percent to 15 percent in constant-currency (cc) terms.

Birkenstock said it continues to see strong global demand for its products, despite a challenging consumer environment impacted by the conflicts in the Middle East.

“Our business proved very resilient in the fiscal second quarter,” said Oliver Reichert, CEO, Birkenstock Holding plc. “Despite the ongoing instability in the Middle East, persistent inflationary pressures, US tariff policy evolving unfavorably for us and continued F/X headwinds, we delivered constant currency revenue growth of over 14 percent.”

Revenue Summary
(in € millions)

Channel Summary
B2B (Wholesale) revenue grew reportedly grew 9 percent (+15 percent cc) year-over-year (y/y) to €472 million, said to be driven by strong double-digit growth at key partner stores globally. The majority of this growth reportedly came from within existing doors driven by “an expanded assortment of Birkenstock styles, high sales velocity and strong full-price realization.”

DTC revenue was up 4 percent (+12 percent cc) y/y to €146 million. The company further amplified its own-store footprint with the addition of five new own stores during the quarter, bringing the total number of own retail stores to 111 as of March 31.

Region Summary
The company saw double-digit revenue growth in constant-currency (cc) terms across all segments:

The Americas segment increased 4 percent (+14 percent cc) y/y to €324 million in the fiscal second quarter. The strong double-digit constant-currency growth was reportedly led by the B2B channel, where the company said it continues to take share within key partners, especially emerging youth-focused retailers and sports specialty stores. Birkenstock opened two additional own retail stores in the DTC business, bringing the total in the Americas to 17 doors.

EMEA revenue increased 10 percent (+11 percent cc) y/y to €235 million. The company said the war in the Middle East negatively impacted EMEA revenue by approximately €6 million and caused an estimated 300 basis-point headwind to EMEA growth in the quarter. About half of this was said to be a direct impact as the company was unable to complete certain deliveries to the region. The remainder was due to muted consumer sentiment in Europe largely attributed to increased energy costs and higher inflation as a result of the war. The company opened one new own retail store, bringing the total in EMEA to 46 doors.

APAC segment revenue increased 22 percent (+30 percent cc) y/y tp €59 million in Q2. The company said APAC showed the highest closed-toe penetration and highest ASP in the quarter compared to the other segments. Birkenstock opened two new own retail stores, bringing the total in APAC to 48 doors.

“In an overall challenging environment, we continue to see strong opportunities,” Reichert offered. “Our APAC market is growing at twice the pace of the other segments, we are accelerating the pace of our own retail store openings and our closed-toe share of business continues to expand. We have demonstrated resilience in navigating external headwinds and challenging market conditions, while continuing to deliver strong, profitable growth.”

Profitability & Expenses
Gross profit margin fell 380 basis points to 53.9 percent in Q2, down from 57.7 percent in the prior-year Q2 period, said to be primarily due to unfavorable currency translation (230 basis points), incremental U.S. tariffs (90 basis points) and channel mix (30 basis points), partly offset by sales price adjustments (net of inflation) and improved capacity absorption; The company said the decrease was further driven by a 70 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 was 54.6 percent, down 310 basis points y/y, said to be primarily due to unfavorable currency translation (230 basis points), incremental U.S. tariffs (90 basis points) and channel mix (30 basis points), partly offset by sales price adjustments (net of inflation) and improved capacity absorption

Net profit fell 22 percent y/y to €82 million, with EPS down 20 percent €0.45 per share from €0.56 in the fiscal 2025 second quarter.

Adjusted net profit was €93 million for the quarter – down 10 percent – and Adjusted EPS was €0.50, down 9 percent y/y, reportedly driven by unfavorable currency translation, incremental U.S. tariffs and the non-cash negative revaluation of the embedded derivative of the senior notes of €15 million.

Adjusted EBITDA came in at €198 million, down 1 percent y/y, reportedly due to currency translation impacts and incremental U.S. tariffs. Adjusted EBITDA margin was 32.1 percent in Q2, down 270 basis points from 34.8 percent in the prior-year Q2 period, said to be due to unfavorable currency translation (240 basis points) and incremental U.S. tariffs (90 basis points), partly offset by sales price adjustments (net of inflation) and improved capacity absorption

Investing in Production Capacity
Birkenstock invested approximately €21 million in capital expenditures during the fiscal second quarter 2026, primarily to add production capacity as well as to expand retail operations globally.

Balance Sheet Summary
Birkenstock ended the quarter with cash and cash equivalents of €201 million and net leverage of 1.7x as of March 31, 2026 compared to 1.5x as of September 30, 2025 due to typical cash seasonality.

Outlook
The company is confirming its guidance for fiscal 2026:

  • Revenue growth of 13 percent to 15 percent in constant -currency terms
  • Adjusted gross profit margin of 57.0 percent to 57.5 percent
  • Adjusted EBITDA margin of 30.0 percent to 30.5 percent
  • Tax rate of 26 percent to 28 percent
  • Adjusted EPS of €1.90 to €2.05, inclusive of tariff and F/X impacts
  • Capital expenditures in range of €110-130 million.

Image courtesy Birkenstock Holding plc