Birkenstock has raised its guidance for fiscal year 2026, according to Oliver Reichert, chief executive of the German footwear maker, who justified this decision by the performance of the third quarter, ended June 30. L'entreprise raised its revenue growth forecast to 15% for the current fiscal year.
Over the period, profit nonetheless stood at 109.6 million euros, down 15.2% from the 129.2 million euros recorded a year earlier. Over the first nine months, profit fell 4.9% to nearly 241 million euros, while revenue rose 10.7% to 1.74 billion euros.
The quarter's gross margin fell 140 basis points to 59.1%, a decline attributable to unfavourable currency effects and additional US tariffs. Adjusted EBITDA margin, however, stood at 33.7%, and adjusted EBITDA rose 11% to reach 242.5 million euros.
Growth driven by direct retail and Asie-Pacifique
Oliver Reichert said that Direct-to-consumer growth had accelerated, outpacing B2B growth during the quarter. « We continue to execute as planned across the business. Direct-to-consumer growth accelerated, outpacing B2B growth in the quarter, supported by the investments we are making in both own-retail and our digital business », he said. He also stated that the company had « performed exceptionally well in the third quarter and once again demonstrated the strength of our brand ».
Birkenstock had 124 own stores at the end of the quarter, after opening 13 new points of sale during the period. The share of closed-toe shoes continues to expand, driven by new clog and shoe models.
By region, revenue rose 18% in Asie-Pacifique, to 74.7 million euros, and 15% in Europe, Moyen-Orient and Afrique, to 297.2 million euros. Amériques remains the strongest region, with 347.4 million euros in revenue. L'impact of conflicts in the Moyen-Orient on regional revenue was smaller than expected.
Rachat of shares and rising debt
Birkenstock carried out an accelerated share buyback of 230 million euros and issued, in mid-June, senior notes worth 900 million euros at a rate of 4.50%. The increase in financial charges was driven by non-recurring, non-cash expenses of 22 million euros linked to these two operations.
Cash and cash equivalents stood at 693.6 million euros as of June 30. The net debt ratio rose to 1.8 times adjusted EBITDA, compared with 1.5 times at the end of the previous September.
Dana Telsey, chief investment officer at Telsey Advisory Group, said that Birkenstock is well positioned to gain additional shelf space with its retail partners. « Overall, we continue to see Birkenstock as well positioned to take additional shelf space with key retail partners, while expanding its standalone store footprint », she wrote in a note published shortly after the results were released.
