Birkenstock Holding plc

Birkenstock reported Q3 revenue of EUR 720 million, up 13% reported and 15% in constant currency; adjusted gross profit margin was 59.2%, down 130 basis points year over year; adjusted EBITDA was EUR 242 million, up 11%; adjusted EBITDA margin was 33.7%, down 70 basis points; adjusted net profit was EUR 134 million, up 15%; and adjusted EPS was EUR 0.74, up 19% from EUR 0.62 a year ago. FX created a 180 basis-point headwind to revenue growth, while adjusted gross margin was pressured by 60 basis points from FX and 70 basis points from incremental U.S. tariffs. For the full year, management now expects revenue growth of 15% at the high end of the prior 13% to 15% range, adjusted EBITDA of at least EUR 710 million, adjusted gross margin of 57% to 57.5%, adjusted EBITDA margin of 30.2% to 30.5%, adjusted EPS of EUR 1.90 to EUR 2.05, CapEx of EUR 110 million to EUR 130 million, and year-end net leverage of about 1.6x to 1.7x.

Oliver Reichert framed the quarter as evidence that Birkenstock’s brand strength and product strategy are still driving demand, even with inflationary pressure on consumers. He emphasized continued investment in DTC, retail expansion, digital improvement, closed-toe innovation, and APAC, while also stressing disciplined distribution and scarcity to protect brand equity. His tone was confident and upbeat, repeatedly pointing to the brand’s long runway and the ability to grow across regions, channels, and customer groups.

Ivica Krolo highlighted that Q3 revenue exceeded expectations and that margin pressure from FX and tariffs was partly offset by capacity absorption. He said adjusted gross profit margin was 59.2%, adjusted EBITDA margin was 33.7%, operating cash was EUR 247 million, and cash and cash equivalents ended at EUR 694 million after EUR 230 million of share repurchases and the debt refinancing. He also noted a 30% to 31% tax rate this year due to non-deductible, nonrecurring finance items, finance costs normalizing around EUR 25 million per quarter, and recurring interest expense rising by about EUR 4.5 million per quarter from the new debt.

Analysts focused on the DTC rebound, EMEA demand drivers, pricing discipline, inventory, China growth, and capital allocation. Management said DTC outperformed because of expanded retail footprint, stronger digital conversion, and more compelling product storytelling, while B2B remained healthy and disciplined; on EMEA, they said Middle East conflict still weighed on results but less than in Q2, and the second-half impact should be below the EUR 10 million to EUR 12 million originally estimated. On capital returns, they said they have about EUR 500 million available for further buybacks and will stay flexible depending on market conditions and potential shareholder liquidity events.