Birkenstock Holding plc shares dropped approximately 12% in after-hours trading after the company released second-quarter results. Revenue rose but fell short of analyst forecasts, while profits declined year-over-year.
Q2 Financial Results
The company posted revenue of €618.3 million, marking a 7.7% increase from the prior-year period. This figure missed analyst expectations of €620.3 million. Operating profit came in at €155.5 million, down 11% year-over-year and below the anticipated €168.1 million.
Earnings per share (EPS) reached €0.50, compared to €0.55 in the same quarter last year and short of the €0.59 consensus estimate. Net profit fell 22% to €81.9 million against expectations of €109.4 million. Adjusted EBITDA totaled €198.3 million, a slight 0.9% decline year-over-year, missing the €199.5 million forecast.
Margins and Key Factors
Adjusted EBITDA margin improved by 270 basis points to 32.1%. However, gross profit margin contracted 310 basis points to 54.6% from 57.7% a year earlier. Birkenstock attributed the 230 basis point decline in gross margin to inventory buildup and a 90 basis point impact from additional U.S. tariffs. A one-time €15 million currency gain from exchange rate changes also supported results.
Regional and Channel Breakdown
Americas revenue grew 3.8% to €324.4 million, slightly below the €325.9 million estimate. EMEA sales surged 10% to €235.1 million, while APAC jumped 22% to €58.6 million. EMEA growth offset roughly €6 million in Americas weakness, with second-half EMEA expansion contributing 300 basis points to full-year performance.
B2B channel revenue increased 9.1% to €471.7 million, missing expectations of €479.3 million. Direct-to-consumer (DTC) sales rose 4% to €146.4 million, exceeding the €145.9 million forecast.
CEO Commentary
Oliver Reichert, CEO of Birkenstock, stated, “Our business has maintained momentum in sales volumes even in the current fiscal year.” He added, “Despite geopolitical instability in the Middle East, limited inflation pressures, unfavorable U.S. tariff policies, and anticipated foreign exchange impacts, we achieved over 14% sales growth on a constant currency basis.”
Fiscal 2026 Guidance
Birkenstock reaffirmed full-year guidance, projecting constant-currency revenue growth of 13% to 15%, adjusted EBITDA margin of 30% to 30.5%, and gross margin of 57% to 57.5%. The company maintained EPS outlook at €1.90 to €2.05, factoring in tariff and foreign exchange headwinds.
