Birkenstock Holding plc ((BIRK)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Birkenstock Holding plc’s recent earnings call reflects a robust performance, marked by impressive revenue growth and profitability, despite facing challenges such as FX impact, tariffs, and capacity constraints. The overall sentiment remains positive, driven by significant achievements and strong market demand.
Record Revenue Growth
Birkenstock achieved a remarkable 16% revenue growth in constant currency for Q3 2025, with all segments and channels experiencing double-digit growth. This record-breaking performance underscores the company’s strong market position and effective strategies.
Improved Profitability
The company reported an increase in gross margin by 100 basis points to 60.5%, and an EBITDA margin rise of 140 basis points to 34.4%. These figures represent the best third-quarter margins in Birkenstock’s history, highlighting their efficient cost management and operational excellence.
Strong B2B Performance
Birkenstock’s B2B revenue surpassed DTC, with an 18% increase in constant currency. This growth was fueled by a shift back to in-person shopping, showcasing the company’s adaptability to changing consumer behaviors.
Significant Growth in APAC
The APAC region experienced a 24% revenue increase in constant currency, with China contributing 20% of this growth. This expansion highlights Birkenstock’s successful penetration into the Asian markets.
Successful Store Expansions
The company added 13 new retail stores, aiming to reach a total of 100 by the fiscal year’s end. This expansion reflects Birkenstock’s commitment to enhancing its retail footprint and customer reach.
FX Impact
The depreciation of the dollar against the euro by about 5% resulted in a 330 basis points drag on revenue growth, affecting margins. Despite this, Birkenstock managed to sustain its pricing strategy effectively.
Tariff Challenges
An increase in EU tariffs to 15% posed challenges to revenue and margins. However, Birkenstock managed these impacts effectively, demonstrating resilience in navigating regulatory changes.
Capacity Constraints
Limited production capacity in EMEA led to missed opportunities in meeting demand fully. This constraint highlights the need for strategic investments in production capabilities.
Forward-Looking Guidance
Looking ahead, Birkenstock is well-positioned to achieve its full-year growth and profitability objectives. The company forecasts continued revenue acceleration, particularly in the APAC region, and remains committed to expanding its retail presence and maintaining a strong order book.
In conclusion, Birkenstock Holding plc’s earnings call conveyed a positive outlook, driven by strong revenue growth and profitability. Despite facing challenges such as FX impact and tariffs, the company demonstrated resilience and strategic foresight, positioning itself for continued success in the future.