Birkenstock Holding plc (NYSE:BIRK) reported full-year results for fiscal 2025 ended September 30, 2025, showing revenue growth ahead of its stated targets and continued margin expansion despite currency and tariff headwinds. Revenue reached EUR 2.1 billion, up 16% reported and 18% in constant currency, exceeding the company’s 15–17% guidance range. Adjusted EBITDA margin landed at 31.8%, the high end of guidance, while net profit rose sharply year over year. Management also introduced fiscal 2026 targets calling for continued double-digit growth alongside planned investments and share repurchases.
#Financial Performance Breakdown
For fiscal 2025, Birkenstock generated revenue of EUR 2.1 billion, supported by double-digit growth across all regions and channels. The Americas delivered 15% reported growth, EMEA grew 14%, and APAC expanded 31% reported, reflecting accelerating brand penetration in Asia-Pacific. Business-to-business revenue increased 20% reported, while direct-to-consumer revenue grew 11%, highlighting continued wholesale momentum alongside measured DTC expansion.
Gross profit margin improved to 59.1%, up 30 basis points year over year, driven by sales price adjustments and improved absorption of manufacturing capacity. These gains were partly offset by unfavorable currency translation and incremental U.S. tariffs, each representing roughly 30 basis points of pressure.
Adjusted EBITDA rose 20% to EUR 667 million, with margin expansion of 100 basis points to 31.8%. Net profit increased 82% to EUR 348 million, while adjusted net profit rose 44% to EUR 346 million. Operating cash flow totaled EUR 384 million, declining year over year primarily due to tax timing and working capital movements. Net leverage improved to 1.5x following strong earnings and debt reduction.
#Strategic and Operational Highlights
Operationally, fiscal 2025 reflected continued execution across product, channel, and geographic initiatives disclosed by management. Closed-toe footwear continued to outpace sandals, lifting average selling prices and increasing closed-toe share of revenue by 500 basis points to 38%. Unit volumes grew 12% for the year, while ASP increased 5% in constant currency, supported by product mix and targeted pricing actions.
The company expanded its owned retail footprint with 30 net new stores, bringing the global total to 97 locations. APAC remained a standout region, with 16 new own stores opened and double-digit growth in mono-brand partner locations. Capital expenditures of approximately EUR 85 million were primarily directed toward expanding production capacity, reflecting management’s stated priority to meet sustained consumer demand while managing supply constraints.
#Management Commentary and Outlook
Chief Executive Officer Oliver Reichert attributed fiscal 2025 performance to strong global consumer demand and disciplined execution, noting continued share gains at key wholesale partners and robust full-price sell-through. Management characterized production capacity, rather than demand, as the primary constraint on growth and reiterated its intent to maintain brand scarcity.
For fiscal 2026, management guided to constant currency revenue growth of 13–15%, translating to reported revenue of EUR 2.30–2.35 billion, assuming a 300–350 basis point currency headwind. Adjusted EBITDA is expected to be at least EUR 700 million, with margins of 30.0–30.5%, inclusive of further currency and tariff pressures. The outlook also includes planned capital expenditures of EUR 110–130 million and a USD 200 million share repurchase program, subject to market conditions.
#Investor Takeaway and Risk Framing
Fiscal 2025 results indicate continued brand strength and operational leverage at Birkenstock, with growth exceeding guidance and margins holding near peak levels despite external headwinds. The fiscal 2026 outlook suggests management expects demand to remain resilient, though currency, tariffs, and capacity constraints remain relevant risks. As with any single reporting period, execution against stated targets and external conditions will influence outcomes over time.