Birkenstock’s Earnings Call: Record Growth Amid Challenges

Birkenstock Holding plc ((BIRK)) has held its Q2 earnings call. Read on for the main highlights of the call.

Birkenstock’s recent earnings call painted a largely positive picture for the company, showcasing robust revenue growth and successful retail expansion. Despite some challenges on the horizon, such as tariffs and currency fluctuations, the company remains optimistic about its future prospects. The positive aspects of their performance, including improvements in gross margin and profits, significantly outweigh the negatives, indicating a strong overall sentiment.

Record Revenue Achievement

Birkenstock achieved a record €574 million in revenues for the second quarter of 2025, marking a 19% increase year-over-year on a reported basis and 18% in constant currency. This impressive growth surpassed their annual target of 15-17%, highlighting the company’s strong market presence and effective strategies.

Strong Performance Across Segments

The company’s performance across various regions was noteworthy, with the Americas region experiencing a 23% growth in reported currency. The APAC region emerged as the fastest-growing segment, boasting a 30% increase in revenue, while China more than doubled its revenue year-over-year. This widespread growth underscores Birkenstock’s successful global strategy.

Gross Margin and Profit Growth

Birkenstock reported an increase in gross margin by 140 basis points to 57.7%, alongside a 23% year-over-year growth in adjusted EBITDA, reaching €200 million. Additionally, the adjusted net profit saw a significant 33% increase, reflecting the company’s efficient cost management and profitability.

Closed-Toe Silhouettes Growth

The company’s closed-toe silhouettes segment grew at twice the rate of the overall group, increasing its share of business by 400 basis points. This indicates a strong consumer demand and successful product diversification strategy.

Retail Expansion Success

Birkenstock expanded its retail footprint by adding six new stores in the second quarter, bringing the total to 77 owned stores. The company plans to reach 100 owned stores by the end of the fiscal year, demonstrating its commitment to enhancing its retail presence.

Tariff and FX Headwinds

Despite the positive results, Birkenstock acknowledged potential challenges from tariffs and recent dollar depreciation, which could impact growth and margins in the latter half of the year. The company is actively working on strategies to mitigate these risks.

Higher G&A Expenses

General administration expenses rose by 150 basis points year-over-year, primarily due to reclassification and increased IT expenses related to an ERP conversion. While this represents a cost increase, it is part of the company’s broader strategy to enhance operational efficiency.

Forward-Looking Guidance

Looking ahead, Birkenstock revised its adjusted EBITDA margin guidance upwards to 31.3% to 31.8%, reflecting a 50 basis point increase over previous expectations. The company remains focused on balancing growth across B2B and DTC channels and is strategically positioned to manage potential impacts from tariffs and currency fluctuations.

In summary, Birkenstock’s earnings call highlighted a strong performance with record revenue achievements and significant growth across regions and segments. Despite some challenges, the company’s strategic initiatives and positive outlook suggest a promising future. Investors and market enthusiasts can look forward to Birkenstock’s continued success as it navigates the evolving market landscape.