Birkenstock reports significant profit decline despite sales growth

German footwear provider Birkenstock achieved solid sales growth in the second quarter of the 2025/26 financial year, despite adverse conditions and negative currency effects. However, profit declined significantly. This was revealed in a recent interim report published on Wednesday by its parent company, Birkenstock Holding plc, which is listed on the New York Stock Exchange.

From January to March, group revenue reached 618.3 million euros (723.8 million dollars). This represented an 8 percent increase compared to the same quarter last year. Adjusted for currency fluctuations, revenue rose by 14 percent.

In the wholesale business, sales increased by nine percent (15 percent on a currency-neutral basis) to 471.7 million euros. The company's own retail business achieved a four percent increase (12 percent on a currency-neutral basis), reaching 146.4 million euros.

Middle East conflict slows growth

Birkenstock also achieved growth in all market regions during the past quarter. In the Americas, revenue increased by four percent (14 percent on a currency-neutral basis) to 324.4 million euros. In the EMEA region, which includes Europe, the Middle East and Africa, sales grew by ten percent (11 percent on a currency-neutral basis) to 235.1 million euros. However, the conflict in the Middle East slowed growth by preventing deliveries to the region and dampening consumer sentiment in Europe. The company estimated the resulting loss in sales at approximately six million euros.

The Asia-Pacific region continued to show above-average dynamic growth, with a sales increase of 22 percent (30 percent on a currency-neutral basis) to 58.6 million euros.

Net profit shrinks by 22 percent

Negative currency effects, higher customs duties, a less favourable sales channel mix and the impact of acquiring its Australian distribution partner caused the gross margin to fall. The margin dropped to 53.9 percent, down from 57.7 percent in the same quarter last year. This led to a one percent decrease in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), which fell to 198.3 million euros.

Reported net profit fell by 22 percent to 81.9 million euros. Adjusted for special items, it was ten percent below the level of the same quarter last year.

Management confirms annual forecasts

Birkenstock CEO Oliver Reichert emphasised that the company had proven to be “very resilient” in the face of numerous challenges during the second quarter. He noted that the currency-neutral sales growth of 14 percent was within the short and long-term target range, despite the difficult conditions.

Thus, management maintained its forecasts despite the current uncertainties. For the current 2025/26 financial year, a currency-neutral sales increase of 13 to 15 percent and an adjusted EBITDA margin in the range of 30.0 to 30.5 percent are still expected.

This article was translated to English using an AI tool.

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