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Birkenstock Holding plc (BIRK)
NYSE:BIRK
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Birkenstock Holding plc
(NYSE:BIRK)
Rating:72Outperform
Price Target:
$56.00
▲(6.77% Upside)
Positive Factors
Brand Strength
Birkenstock remains one of the most healthy, in demand, and best run brands in our coverage.
Market Opportunities
The APAC region presents a significant opportunity for BIRK, with potential for sales penetration to double and drive margin expansion.
Revenue Growth
Birkenstock's third-quarter revenue rose 12% on broad-based strength across regions, channels, and categories, with a high-single-digit increase in units sold.
Negative Factors
Currency Impact
Shares are down 11% due primarily to the Euro's appreciation against the USD.
Sales Miss
3Q25 DTC sales results, which missed consensus expectations by 5.2%, is indicative of anything but a shift to in-store shopping.
Birkenstock Holding plc (BIRK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.54B
Dividend YieldN/A
Average Volume (3M)1.99M
Price to Earnings (P/E)29.0
Beta (1Y)1.03
Revenue Growth18.66%
EPS Growth183.98%
CountryUS
Employees6,200
SectorConsumer Cyclical
Sector Strength79
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.72
Shares Outstanding183,906,050
10 Day Avg. Volume2,372,857
30 Day Avg. Volume1,985,661
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue5.16
Enterprise Value/Gross Profit8.71
Enterprise Value/Ebitda16.69
Forecast
1Y Price Target
$68.67Price Target Upside30.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Birkenstock Holding plc Business Overview & Revenue Model
Company DescriptionBirkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.
How the Company Makes MoneyBirkenstock Holding plc generates revenue primarily through the sale of its footwear products. The company's key revenue streams include direct-to-consumer sales through its branded retail stores and e-commerce platforms, as well as wholesale distribution channels that supply products to a wide network of third-party retailers globally. Birkenstock's earnings are bolstered by the strong brand loyalty it enjoys, driven by its reputation for high-quality, durable, and comfortable footwear. Additionally, the company may engage in strategic partnerships and collaborations to expand its market reach and enhance brand visibility, further contributing to its revenue.
Birkenstock Holding plc Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in terms of revenue growth, profitability, and successful expansion in key regions. However, challenges such as FX impact, tariffs, and capacity constraints were noted. Despite these challenges, the overall sentiment is positive due to significant achievements and strong market demand.Q3-2025 Updates
Positive Updates
Record Revenue Growth
Birkenstock achieved a 16% revenue growth in constant currency for Q3 2025, with double-digit growth across all segments and channels.
Improved Profitability
Gross margin increased by 100 basis points to 60.5%, and EBITDA margin rose by 140 basis points to 34.4%, marking the best third-quarter margin for the company.
Strong B2B Performance
B2B revenue outpaced DTC, with B2B revenue up 18% in constant currency, benefiting from the shift to in-person shopping.
Significant Growth in APAC
APAC region saw a 24% increase in constant currency, and the business in China accounted for 20% of APAC revenue.
Successful Store Expansions
Birkenstock added 13 new doors in own retail, aiming to reach 100 stores by the end of the fiscal year.
Negative Updates
FX Impact
The dollar depreciated by about 5% against the euro, causing a 330 basis points drag on revenue growth and affecting margins.
Tariff Challenges
The EU tariff increased to 15%, which, although manageable, posed challenges to revenue and margin.
Capacity Constraints
Limited production capacity in EMEA led to missed opportunities to meet demand fully.
Company Guidance
During the third quarter of fiscal year 2025, Birkenstock reported a robust performance, achieving a 16% revenue growth in constant currency and demonstrating significant improvements in profitability. The company recorded a gross margin increase of 100 basis points to 60.5% and an EBITDA margin rise of 140 basis points to 34.4%, marking their best third-quarter margin ever. Retail revenue at their top 10 wholesale partners in a flat U.S. market surged by 25%, while EMEA's retail revenue at top partners climbed 20%. Within the B2B channel, over 90% of growth was from existing doors. Birkenstock accelerated their own retail expansion, adding 13 new stores, aiming for a total of 100 by year-end. Closed-toe product revenue increased by 400 basis points year-over-year, with strong demand across all product categories. The APAC region's revenue grew by 24% in constant currency, with a forecasted acceleration for the fourth quarter. Despite facing currency volatility, Birkenstock sustained its pricing strategy, managed tariff impacts effectively, and maintained a strong order book, positioning itself well to meet its full-year growth and profitability objectives.Birkenstock Holding plc Financial Statement Overview
Summary
Birkenstock Holding plc demonstrates strong financial performance with consistent revenue and profit growth, efficient cost management, and a stable balance sheet. The recent decline in free cash flow growth warrants attention, but overall financial health remains robust, supported by solid profitability and moderate leverage.Income Statement
Birkenstock Holding plc has shown strong revenue growth with a TTM increase of 3.59% and consistent improvement in profitability margins. The gross profit margin is robust at 58.99%, and the net profit margin has improved to 12.90% in the TTM. EBIT and EBITDA margins have also increased, indicating efficient cost management and operational strength. The company has demonstrated a positive growth trajectory, enhancing its financial stability.85
Very Positive
Balance Sheet
The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.50, indicating moderate leverage. Return on equity has improved to 9.34%, showcasing effective utilization of equity capital. The equity ratio stands at 53.63%, suggesting a solid equity base relative to total assets. Overall, the balance sheet indicates stability, though there is room for further improvement in leverage management.78
Positive
Cash Flow
Cash flow analysis shows a slight decline in free cash flow growth at -7.71% in the TTM, which could be a concern. However, the operating cash flow to net income ratio remains strong at 0.96, and the free cash flow to net income ratio is healthy at 0.81. Despite the recent dip in free cash flow growth, the company maintains a solid cash flow position, supporting its operational needs.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.03B | 1.80B | 1.49B | 1.24B | 962.13M | 728.55M |
| Gross Profit | 1.20B | 1.06B | 925.79M | 749.80M | 545.65M | 260.28M |
| EBITDA | 627.01M | 503.67M | 360.35M | 423.14M | 230.25M | 3.35M |
| Net Income | 306.93M | 191.60M | 75.02M | 187.11M | 116.44M | -106.19M |
Balance Sheet | ||||||
| Total Assets | 4.91B | 4.88B | 4.83B | 4.79B | 4.27B | 803.56M |
| Cash, Cash Equivalents and Short-Term Investments | 261.83M | 376.46M | 354.06M | 307.08M | 235.34M | 96.18M |
| Total Debt | 1.37B | 1.35B | 1.98B | 2.04B | 1.89B | 220.43M |
| Total Liabilities | 2.27B | 2.26B | 2.43B | 2.43B | 2.20B | 395.39M |
| Stockholders Equity | 2.63B | 2.63B | 2.40B | 2.36B | 2.06B | 398.16M |
Cash Flow | ||||||
| Free Cash Flow | 295.14M | 354.80M | 255.79M | 161.54M | 159.65M | 171.26M |
| Operating Cash Flow | 373.32M | 428.70M | 358.73M | 234.14M | 180.93M | 193.60M |
| Investing Cash Flow | -72.48M | -58.80M | -100.73M | -71.65M | -18.15M | -3.50M |
| Financing Cash Flow | -439.23M | -355.05M | -199.28M | -105.32M | -84.74M | -130.25M |
Birkenstock Holding plc Technical Analysis
Positive
52.45
Price Trends
49.96
Positive
50.98
Positive
51.63
Positive
Market Momentum
0.62
Negative
58.18
Neutral
73.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIRK, the sentiment is Positive. The current price of 52.45 is above the 20-day moving average (MA) of 50.21, above the 50-day MA of 49.96, and above the 200-day MA of 51.63, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 73.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BIRK.
Birkenstock Holding plc Risk Analysis
Birkenstock Holding plc disclosed 81 risk factors in its most recent earnings report. Birkenstock Holding plc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Birkenstock Holding plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $16.87B | 17.93 | 43.58% | ― | 15.43% | 24.20% | |
77 Outperform | $9.47B | 14.42 | 14.79% | ― | 12.11% | 17.08% | |
74 Outperform | $2.04B | 22.14 | 11.09% | 2.88% | 7.80% | -48.10% | |
72 Outperform | $9.54B | 29.02 | 11.36% | ― | 18.66% | 183.98% | |
69 Neutral | $2.56B | 30.44 | 27.52% | 1.23% | -2.83% | ― | |
68 Neutral | $4.67B | 23.26 | 15.39% | ― | 2.04% | -71.52% | |
61 Neutral | $17.78B | 13.97 | -5.40% | 3.03% | 1.50% | -15.71% |
* Consumer Cyclical Sector Average
Performance Comparison
BIRK
Birkenstock Holding plc
52.45
1.55
3.05%
CROX
Crocs
86.29
-58.99
-40.60%
DECK
Deckers Outdoor
118.14
-38.76
-24.70%
SKX
Skechers USA
63.08
-5.41
-7.90%
SHOO
Steven Madden
29.18
-14.24
-32.80%
WWW
Wolverine World Wide
32.40
18.92
140.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.