Germany's Birkenstock posts strong FY25 as revenue tops $2.46 bn

The net profit surged to €348 million (~$407.16 million), up 82 per cent from the prior year, while earnings per share (EPS) increased 83 per cent to €1.87. Adjusted net profit reached €346 million, up 44 per cent, with adjusted EPS of €1.85.

The adjusted EBITDA rose 20 per cent YoY to €667 million (~$780.39 million), with the adjusted EBITDA margin improving by 100 basis points to 31.8 per cent, reaching the upper end of guidance. The company noted that margins benefited from sales price adjustments and improved absorption of manufacturing capacity, partly offset by around 70 basis points of combined currency and tariff pressures, Birkenstock said in a press release.

“We are proud to be reporting very strong fiscal 2025 results, with constant currency revenue growth coming in ahead of our target at 18 per cent and Adjusted EBITDA margin at the high end of our guidance range. Once again, the Birkenstock team executed very well and our brand continues to stand out with consumers. We continue to take share at key wholesale partners who view our brand as a ‘must-have’,” said Oliver Reichert, chief executive officer (CEO) of Birkenstock.

The company delivered double-digit revenue growth across all geographic segments. The Americas reported growth of 15 per cent on a reported basis and 18 per cent in constant currency, driven largely by strong B2B momentum and continued share gains with key partners. Six new own-retail stores were opened in the region during the fiscal.

Europe, Middle East and Africa (EMEA) revenue increased 14 per cent on both a reported and constant currency basis, with B2B again leading growth. The company added eight net new own stores in the region, taking the total to 42.

Asia Pacific (APAC) was the fastest-growing region, with revenue rising 31 per cent on a reported basis and 34 per cent in constant currency. The company expanded aggressively in the region, opening 16 new own-retail stores and growing mono-brand partner stores by more than 15 per cent YoY.

By channel, B2B revenue increased 20 per cent on a reported basis and 21 per cent in constant currency, supported by strong sell-through at existing doors and an expanded assortment. Direct-to-consumer revenue grew 11 per cent reported and 12 per cent in constant currency, supported by store expansion and stable full-price demand.

Product mix also played a key role, with closed-toe footwear continuing to outpace sandals. Closed-toe products accounted for 38 per cent of full-fiscal revenue, up 500 basis points YoY, contributing to higher average selling prices.

In the fourth quarter (Q4) of FY25, revenue reached €526 million, up 15 per cent reported and 20 per cent in constant currency. All regions posted double-digit growth, led again by APAC. Adjusted EBITDA rose 17 per cent YoY to €147 million, while adjusted EBITDA margin improved 40 basis points to 27.8 per cent, despite significant currency and tariff headwinds.

The net profit for the quarter increased 79 per cent to €94 million, with EPS rising to €0.51. During the quarter, the company also made an early repayment of $50 million on its USD term loan.

Cash flows from operating activities amounted to €384 million, with the YoY decline primarily reflecting timing of tax payments and working capital movements. Net leverage improved to 1.5x at year-end, down from 1.8x a year earlier. Birkenstock ended fiscal 2025 with cash and cash equivalents of €329 million.

Capital expenditure totalled approximately €85 million during the fiscal, largely focused on expanding production capacity to support future growth. The company also repurchased and cancelled 3.9 million shares for €176 million, reducing average shares outstanding and strengthening earnings per share.

For fiscal 2026 (FY26), Birkenstock expects constant currency revenue growth of 13-15 per cent, translating into reported revenue of €2.30-2.35 billion. Adjusted EBITDA is expected to reach at least €700 million, implying an adjusted EBITDA margin of 30-30.5 per cent. Adjusted EPS is forecast in the range of €1.9-2.05, excluding the impact of potential share repurchases, added the release.

The company plans capital expenditure of €110-130 million, intends to repurchase shares worth $200 million during FY26 subject to market conditions, and expects to open around 40 new own-retail stores globally as it continues to invest in capacity and brand presence.

“As we look forward into FY26, we see a continuation of the strong consumer demand and double-digit growth. Our growth is currently only limited globally by our production capacity and desire to maintain scarcity; consumer demand remains robust globally,” added Reichert.

ALCHEMPro News Desk (SG)