Birkenstock Holding Ltd (NYSE:BIRK) delivered better-than-expected results for the fourth quarter, supported by solid global demand, but struck a more cautious tone in its guidance for fiscal 2026, which came in below market forecasts.
The German footwear group reported fourth-quarter earnings of €0.51 per share, comfortably ahead of the consensus estimate of €0.36. Quarterly revenue reached €526.3 million, exceeding analyst expectations of €521.1 million and marking a 15% increase on a reported basis, or 20% growth at constant exchange rates.
Performance was strong across all regions. Sales in the Americas rose 11% year on year, or 18% in constant currency terms. Revenue in the EMEA region increased 16%, or 17% on a constant-currency basis, while the Asia-Pacific region delivered the strongest growth, with reported revenue up 33% and constant-currency growth of 38%.
Adjusted EBITDA for the quarter climbed 17% from a year earlier to €147 million, with the adjusted EBITDA margin improving to 27.8%, an increase of 40 basis points compared with the prior year period. The company said margin expansion was achieved despite notable headwinds, including a 140-basis-point impact from currency translation and a further 100-basis-point drag linked to additional U.S. tariffs.
Gross margin, however, edged lower to 58.1%, down 90 basis points from the fourth quarter of 2024, reflecting the same currency and tariff pressures.
For the full fiscal year, Birkenstock reported revenue of €2.1 billion, representing reported growth of 16% and constant-currency growth of 18%.
“We are proud to be reporting very strong fiscal 2025 results, with constant currency revenue growth coming in ahead of our target at 18% and Adjusted EBITDA margin at the high end of our guidance range,” CEO Oliver Reichert said in a statement.
Looking ahead, the company forecast fiscal 2026 revenue in the range of €2.3 billion to €2.35 billion, below the market consensus estimate of €2.39 billion. Birkenstock also guided for adjusted EBITDA of at least €700 million, compared with analyst expectations of €757.8 million, implying an adjusted EBITDA margin of 30.0% to 30.5%, inclusive of currency translation and incremental tariff headwinds.
The company expects gross profit margin in fiscal 2026 to be between 57.0% and 57.5%.