Birkenstock Holding plc Reports Strong Third Quarter Results Amidst Currency Challenges

Birkenstock Holding plc (NYSE: BIRK) has announced its financial results for the fiscal third quarter of 2025, showcasing impressive growth and profitability, while also reaffirming its guidance for the year. The company has demonstrated robust performance despite facing significant currency challenges.

Birkenstock Reports Challenging Quarter with EPS Beat, Slight Miss on Revenue

Birkenstock Holding plc (NYSE: BIRK) has reported its financial results for the third quarter of 2025, ending June 30, with a revenue of EUR 635 million, marking a 12% increase compared to the same period last year.

This growth was even more impressive on a constant currency basis, with an increase of 16%. The company has surpassed expectations with an EPS of EUR 0.69, compared to the anticipated EUR 0.67, and revenue slightly lower than the expected EUR 641.2 million. The company’s gross profit margin improved to 60.5%, up 100 basis points from the previous year, and its adjusted EBITDA margin increased to 34.4%, up 140 basis points, showcasing significant margin improvement despite currency headwinds.

In the Americas, Birkenstock achieved a 10% revenue growth on a reported basis and 16% in constant currency. This growth was driven by a strong demand for both B2B and DTC channels. The company expanded its retail footprint by opening three new stores in Houston, Deer Park, and Naperville, bringing the total number of stores in the Americas to 13. In the EMEA region, revenue grew by 13% on both reported and constant currency bases, with new stores in The Hague and San Sebastian contributing to the growth. The APAC region experienced the highest growth, with a 21% increase on a reported basis and 24% in constant currency, supported by the opening of eight new stores.

Birkenstock’s performance is further highlighted by a 73% increase in net profit to EUR 129 million, up from EUR 75 million in the previous year. Adjusted net profit also saw a significant rise, increasing by 26% to EUR 116 million. The company’s ability to maintain strong demand for its products across all segments and regions has been a key factor in its robust financial performance. The company’s strategic focus on expanding its retail presence and optimizing its pricing strategy has contributed to its success in the current quarter.

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Birkenstock Reaffirms Guidance for Fiscal 2025

Looking ahead, Birkenstock has reaffirmed its guidance for fiscal 2025, expecting revenue growth at the high end of its 15-17% range in constant currency. Despite the depreciation of the US Dollar, the company remains confident in achieving an adjusted EBITDA margin between 31.3% and 31.8%. The company’s strategic initiatives, including pricing adjustments, cost discipline, and inventory management, are expected to mitigate the impact of the US/EU tariff agreement and support its long-term profitability.

Birkenstock’s capital expenditures amounted to approximately EUR 22 million in the third quarter, primarily aimed at expanding production capacity to meet the growing consumer demand. The company ended the quarter with cash and cash equivalents of EUR 262 million and a net leverage of 1.7x. Without the share buyback, net leverage would have been 1.4x. The company remains committed to further deleveraging its balance sheet with free cash flow, targeting approximately 1.5x net leverage by the end of fiscal 2025.

In summary, Birkenstock’s strong third-quarter performance and reaffirmed guidance for fiscal 2025 reflect the company’s ability to navigate currency challenges and maintain robust growth across all regions and segments. The company’s strategic focus on expanding its retail footprint, optimizing pricing strategies, and investing in production capacity positions it well for continued success in the coming quarters. Investors and stakeholders can look forward to Birkenstock’s continued growth and profitability as it executes its strategic initiatives and adapts to the evolving market dynamics.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.