Constant Currency Revenue Growth Surpasses Expectations as Birkenstock Captures Global Demand
Birkenstock Holding plc (NYSE:BIRK) delivered another year of standout performance, posting revenue growth of 16% (18% in constant currency) for fiscal 2025—exceeding the upper end of its prior guidance. Every region and sales channel contributed to the surge, underscoring the global appetite for Birkenstock’s brand and products. Growth in average selling prices (up 5% in constant currency) and a notable shift toward closed-toe footwear further fueled top-line gains, with closed-toe styles now accounting for 38% of revenue—a 5-point jump over last year.
Segment Highlights: Double-Digit Gains in Americas, EMEA, and APAC
| Segment | FY 2025 Revenue (EUR M) | Growth (Reported) | Growth (Constant Currency) |
|---|---|---|---|
| Americas | 1,085.67 | 15% | 18% |
| EMEA | 785.23 | 14% | 14% |
| APAC | 221.83 | 31% | 34% |
B2B revenues jumped 20% (21% constant currency), powered by strong wholesale demand and deeper penetration at key partners. The Direct-to-Consumer (DTC) segment also rose 11% (12% constant currency) as Birkenstock added 30 net new own-retail stores, finishing the year with 97 globally.
Margins, Profitability, and Cash Flow Show Robust Improvement
The company improved its gross profit margin by 30 basis points to 59.1%, even as tariffs and unfavorable currency swings created headwinds. Adjusted EBITDA grew 20% to EUR 667 million, bringing the margin to 31.8%—the high end of guidance. Net profit soared 82% to EUR 348 million, reflecting not only operational strength but also improved cost management and operating leverage. Adjusted net profit and EPS also recorded robust gains.
| Metric | FY 2025 | FY 2024 | % Change |
|---|---|---|---|
| Revenue (EUR M) | 2,097.43 | 1,804.69 | 16% |
| Gross Profit Margin | 59.1% | 58.8% | +0.3 pts |
| Adjusted EBITDA (EUR M) | 666.99 | 554.96 | 20% |
| Adjusted EBITDA Margin | 31.8% | 30.8% | +1.0 pt |
| Net Profit (EUR M) | 348.33 | 191.60 | 82% |
| Adjusted EPS (EUR) | 1.85 | 1.28 | 45% |
Operating cash flow stood at EUR 384 million, reflecting solid fundamentals despite temporary tax and working capital movements. Birkenstock also improved its net leverage to 1.5x (down from 1.8x), supported by healthy profits and disciplined capital management—including a EUR 176 million share repurchase in May 2025.
2026 Outlook: Double-Digit Growth and Global Store Expansion Continue
Management set its sights on another year of solid performance, forecasting 13-15% constant-currency revenue growth for fiscal 2026 (10-12% reported, accounting for currency headwinds). Adjusted EBITDA is projected to exceed EUR 700 million with margins in the 30.0-30.5% range. Birkenstock aims to open around 40 new own-retail stores globally and is planning an additional share repurchase of USD 200 million, signaling confidence in the long-term opportunity. Net leverage is targeted to further improve to 1.3-1.4x by next year’s end.
| 2026 Guidance | Target |
|---|---|
| Constant Currency Revenue Growth | 13-15% |
| Reported Revenue | EUR 2.30-2.35 billion |
| Gross Profit Margin | 57.0-57.5% |
| Adjusted EBITDA | = EUR 700 million |
| Adjusted EPS | EUR 1.90-2.05 |
| Store Openings | ~40 new own-retail |
Takeaway: Sustainable Momentum as Brand and Fundamentals Strengthen
Birkenstock’s performance reflects strong demand, disciplined execution, and operational efficiency across global markets. With market-leading growth in the APAC region and continued strength in both wholesale and direct channels, the company appears poised for another robust year. Investors may want to watch for updates on store openings, production capacity expansions, and Birkenstock’s ability to maintain margins amid macroeconomic pressures and tariff effects. The growth story isn’t just continuing—it’s accelerating.
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