Birkenstock Holding plc, the German footwear maker, went ahead and posted pretty robust results for fiscal 2025 – FY25 ended September 30, by way of reporting revenue of €2.1 billion – equivalent to $2.46 billion, which is up 16% YoY on a reported basis and 18% in constant currency, surpassing its guidance of 15-17%. The growth was indeed broad-based throughout all the regions and channels, as well as product categories, in spite of the currency translation and tariff headwinds.
The net profit grew to €348 million, or $407.16 million, which is up 82% from the prior year, while the earnings per share – EPS increased 83% to €1.87. Adjusted net profit went on to reach €346 million, up 44%, with adjusted EPS of €1.85.
The adjusted EBITDA grew 20% YoY to €667 million, or $780.39 million, with the adjusted EBITDA margin showing an improvement of 100 basis points to 31.8%, thereby reaching the upper end of guidance. The company went on to note that margins benefited from sales price adjustments along with enhanced absorption of manufacturing capacity, partly offset by almost 70 basis points of combined currency as well as tariff pressures, confirmed Birkenstock in a press release.
Chief executive officer of Birkenstock, Oliver Reichert, said that they are indeed proud to be reporting very robust results for fiscal 2025, with a consistent currency revenue growth coming in ahead of their target at 18% and an adjusted EBITDA margin at the high end of their guidance range. Yet again, the Birkenstock team implemented quite well, and that their brand continues to stand out among consumers. He further added that they continue to take share at major wholesale partners who go on to view their brand as a must-have.
Apparently, the company went on to deliver double-digit revenue growth throughout all the geographic segments. The Americas went on to report a growth of 15% on a reported basis and 18% in constant currency, driven largely due to strong B2B momentum as well as continued share gains with major partners. Six new own-retail stores have been launched in the region during the fiscal year.
Europe, Middle East, and Africa – EMEA revenue has seen an increase of 14% on both a reported as well as a constant currency basis, with B2B again leading the growth. The company went on to add eight net new owned stores within the region, taking the overall total to 42.
Asia Pacific – APAC was the fastest-growing region, with revenue growing 31% on a reported basis and 34% in terms of constant currency. The company has gone on to expand aggressively across the region, opening 16 new own-retail stores and also growing mono-brand partner stores by over 15% YoY.
By channel, B2B revenue grew 20% on a reported basis and 21% in terms of constant currency, supported due to strong sell-through at the existing doors and an expanded range. Direct-to-consumer revenue grew 11% as reported and 12% in terms of constant currency, supported because of store expansion as well as a balanced full-price demand.
It is well to be noted that product mix also played a crucial role, with closed-toe footwear consistently continuing to outpace sandals. Closed-toe products went on to account for 38% of full-fiscal revenue, up 500 basis points YoY, hence contributing to higher average selling prices.
In the fourth quarter – Q4 of FY25, revenue went on to reach €526 million, which is up 15% as reported and 20% in terms of constant currency. Notably, all regions went on to post double-digit growth, led again due to APAC. Adjusted EBITDA saw a growth of 17% YoY to €147 million, while the adjusted EBITDA margin saw an improvement of 40 basis points to 27.8% – that despite the significant currency as well as tariff headwinds.
In addition to this, the net profit for the quarter witnessed a growth of 79% to €94 million, with EPS rising to €0.51. During the quarter, the company also went on to make an early repayment of $50 million as far as its USD term loan was concerned.
Interestingly, the cash flows from operating activities went on to amount to €384 million, with the YoY dip primarily reflecting the timing of tax payments and also working capital movements. Net leverage saw an improvement to 1.5x at year-end, which was down from 1.8x a year back. Birkenstock ended fiscal 2025 having cash and cash equivalents of almost €329 million.
Also, the capital expenditure amounted to approximately €85 million during the fiscal year, largely focused on expanding production capacity in order to support future growth. The company also went ahead and repurchased as well as cancelled 3.9 million shares for €176 million, thereby decreasing the average shares outstanding and, at the same time, strengthening earnings per share.
For fiscal 2026 – FY26, Birkenstock anticipates constant currency revenue growth of 13-15%, translating into reported revenue of somewhere between €2.30 and 2.35 billion. Adjusted EBITDA is anticipated to touch at least €700 million, thereby implying an adjusted EBITDA margin of anywhere between 30% and 30.5%. Adjusted EPS is forecast in the range of €1.9-2.05, which excludes the impact of potential share repurchases, the release said.
It is worth noting that the company also plans capital expenditure of €110-130 million and intends to repurchase shares amounting to $200 million during FY26 subject to the market conditions, and as a matter of fact, it is anticipated to open around 40 new own-retail stores across the world as it continues to go ahead and invest in capacity and, of course, the brand presence.
Reichert adds that as they look forward into FY26, they indeed do see a continuation of the robust consumer demand and, with it, a double-digit growth. He further opines that their growth is at present only limited globally due to their production capacity and also a desire to maintain scarcity as the consumer demand across the world remains quite strong.
