Birkenstock Holding plc, (NYSE: BIRK) a global brand that manufactures footwear products designed to encourage proper foot health and biomechanics. The company reported revenue growth of 11% on a reported basis and 18% in constant currency for the fiscal first quarter ended December 31, 2025. Following the announcement, the company’s stock increased 2.5% in early trading, implying a market capitalization of approximately $7.3b. This performance was driven by holiday demand for products across all categories and geographic segments.
Quarterly Results
For the quarter ended December 31, 2025, Birkenstock reported revenue of EUR 402 million, an 11.1% increase compared to EUR 362 million in the prior-year period. Net profit for the period rose 151% to EUR 51 million, while basic and diluted earnings per share increased to EUR 0.27 from EUR 0.11. Adjusted EBITDA reached EUR 106 million, representing a 4% increase year-over-year.
The gross profit margin was 55.7%, representing a decrease of 460 basis points from 60.3% in the first quarter of fiscal 2025. This decline was attributed to a 220-basis point impact from unfavorable currency translation and a 130-basis point impact from incremental U.S. tariffs. Additionally, the margin was affected by a 170-basis point mark-up to cost of sales related to the acquisition of Birkenstock Australia Pty. Ltd..
Adjusted gross profit margin for the period was 57.4%, compared to 60.3% in the previous year. The adjusted EBITDA margin was 26.5%, a decline from 28.2% in the prior-year quarter. These margin decreases were partially offset by sales price adjustments and improved capacity absorption.
Annual Performance Context
The first quarter constant currency revenue growth of 18% exceeded the company’s full-year fiscal 2026 guidance of 13% to 15%. For the last twelve months ended December 31, 2025, the company reported an adjusted EBITDA of EUR 671 million. Net leverage stood at 1.7x at the end of the quarter, compared to 1.5x on September 30, 2025, a change attributed to typical cash seasonality.
Business and Operations Update
Geographic revenue growth in constant currency was led by the APAC segment at 37%, where direct-to-consumer (DTC) growth outpaced business-to-business (B2B) growth by over two times. The EMEA segment reported 17% constant currency growth, while the Americas segment grew 14%. The B2B channel grew 24% in constant currency, supported by expanded assortments and full-price sell-through at key partners.
The company expanded its retail presence by opening nine new stores during the quarter, bringing the total to 106 locations. Capital expenditures totaled EUR 38 million, which included EUR 18 million for the acquisition of a production site in Wittichenau. The acquisition of the distributor Birkenstock Australia Pty. Ltd. closed on October 23, 2025.
Forward Outlook
Management reiterated a three-year strategic plan targeting 13% to 15% revenue growth in constant currency and an adjusted EBITDA margin of 30% or higher. The company stated it will continue to manage the business by geography, channel, and product to maintain brand equity. Specific fiscal 2026 guidance remains at 13% to 15% constant currency revenue growth.
Performance Summary
Birkenstock reported an 11% increase in reported revenue and a 151% increase in net profit for the first quarter of fiscal 2026. While margins were impacted by currency fluctuations, U.S. tariffs, and acquisition costs, constant currency revenue growth exceeded annual targets. The company ended the period with cash and cash equivalents of EUR 229 million.