Birkenstock (NYSE:BIRK) shares climbed more than 5% in Thursday premarket trading after the German footwear company delivered stronger-than-expected third-quarter revenue and raised its full-year 2026 outlook. While earnings per share came in slightly below Wall Street forecasts, double-digit growth across every region and improved guidance supported a positive investor reaction.
Revenue beats expectations despite slight earnings miss
Birkenstock reported third-quarter earnings of €0.74 per share, falling €0.02 short of the analyst consensus of €0.76.
Revenue provided a more positive surprise, increasing 15% on a constant-currency basis to €719.5 million. That exceeded the €713.2 million expected by analysts.
Growth remained broad-based across the company’s geographic markets, with every major region delivering double-digit constant-currency expansion.
The Americas recorded 14% growth, while revenue in EMEA increased 15%. APAC remained the fastest-growing region, delivering a 23% increase.
Performance was also balanced across sales channels. Direct-to-consumer revenue rose 16% in constant currency, while business-to-business sales increased 15%.
“We performed exceptionally well in the third quarter and once again demonstrated the strength of our brand,” said Oliver Reichert, CEO of Birkenstock.
EBITDA rises despite pressure on margins
Adjusted EBITDA increased 11% year over year to €242 million, reflecting continued earnings growth alongside higher sales.
However, adjusted EBITDA margin declined by 70 basis points to 33.7%.
Birkenstock attributed the margin pressure partly to unfavourable currency translation and additional U.S. tariffs. These headwinds were partially offset by improved capacity absorption as the company benefited from greater utilisation of its production infrastructure.
The figures indicate that profitability continues to expand in absolute terms, even as external cost pressures weigh on margins.
Birkenstock raises 2026 revenue guidance
The company upgraded its full-year expectations following the stronger third-quarter performance.
Birkenstock now forecasts constant-currency revenue growth of 15% for fiscal 2026, compared with its previous range of 13% to 15%.
On a reported basis, revenue is expected to reach the upper end of the company’s previous €2.30 billion to €2.35 billion range. The analyst consensus currently stands at approximately €2.34 billion.
The improved outlook reflects continued demand across Birkenstock’s geographic markets and distribution channels.
Full-year EBITDA outlook also increases
Birkenstock also raised its profitability forecast for the year.
Adjusted EBITDA is now expected to reach at least €710 million, up from the previous guidance of at least €700 million and slightly ahead of the €709.8 million analyst consensus.
The company expects its full-year adjusted EBITDA margin to range between 30.2% and 30.5%, compared with its previous forecast of 30% to 30.5%.
The increase suggests Birkenstock expects to manage pressures from tariffs and currency movements while continuing to benefit from revenue growth and improved manufacturing utilisation.
APAC remains Birkenstock’s fastest-growing region
Asia-Pacific continues to play an increasingly important role in the company’s expansion strategy.
Following 23% constant-currency growth during the third quarter, Birkenstock said APAC remains on course to expand at twice the rate of its other geographic regions over the full year.
The combination of strong regional growth, higher revenue guidance and an improved EBITDA outlook helped outweigh the modest earnings-per-share miss, sending Birkenstock shares higher ahead of Thursday’s opening bell.