Companies

Birkenstock reports revenue growth but profits come under pressure

May 18, 2026 Germany

Although profitability declined amid a challenging macroeconomic environment, the Germany-based footwear company reported revenue growth across all regions and sales channels

“Our business proved very resilient in the fiscal second quarter. Despite the ongoing instability in the Middle East, persistent inflationary pressures, US tariff policy evolving unfavorably for us and continued F/X headwinds, we delivered constant currency revenue growth of over 14%. This performance was well within our near-term and long-term target of 13-15%”, said Oliver Reichert, CEO of Birkenstock and Member of the Board of Directors of the Company.

Second-Quarter Results

In the second quarter of the 2026 fiscal year, which ended on the 31^st of March, Birkenstock reported a revenue of 618 million euros, reflecting an increase of 8%, or 14% on a constant currency basis, on a comparable basis to the same period of the previous fiscal year.

Compared to the same period of the 2025 fiscal year, the company grew across all regions in the second quarter. It recorded revenue growth of 4% (or 14% on a constant currency basis) in the Americas, 10% (or 11% on a constant currency basis) in EMEA, and 22% (or 30% on a constant currency basis) in APAC.

In terms of channels, Birkenstock recorded revenue growth of 9% (or 15% on a constant currency basis) on the B2B channel, and 4% (or 12% on a constant currency basis) on the DTC channel, compared to the second quarter of last year.

Birkenstock’s gross margin contracted by 380 basis points year-on-year to 53.9% in the second quarter, primarily due to unfavourable currency effects, higher US tariffs, and changes in the channel mix. This decline was also due to costs associated with the acquisition of Birkenstock Australia Pty, which were partially offset by price increases and improved production efficiency.

In the second quarter of the current financial year, the company’s adjusted EBITDA was 198 million US dollars, which is a 1% decrease compared to the same quarter a year ago. This was due to currency translation impacts and incremental US tariffs.

In the three months to the 31^stof March, Birkenstock reported a 22% year-on-year decline in net profit to 82 million euros, and earnings per share declined by 20% to 0.45 US dollars. Adjusted net profit was 93 million euros, a 10% year-on-year decline, and adjusted earnings per share were 0.50 euros, a 9% year-on-year decline.

Fiscal 2026 Outlook

The footwear company reiterated its full-year guidance and continues to expect revenue growth of 3 to 15% in constant currency, as well as adjusted earnings per share of between 1.90 and 2.05, including the impact of tariffs and foreign exchange rates.

Image Credits: wwd.com

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