Birkenstock Holding PLC
NYSE:BIRK
Birkenstock Holding PLC
Birkenstock Holding PLC, a symbol of comfort, craftsmanship, and longstanding tradition, has cemented its position in the global footwear industry through innovation while steadfastly adhering to its heritage. Born in Germany with roots tracing back to 1774, the company is synonymous with its meticulously crafted contoured footbeds that have earned a loyal following over centuries. Birkenstock operates with a straightforward but effective business model: it designs, manufactures, and sells high-quality, ergonomic footwear. The fundamental philosophy revolves around sustainability and precision, using premium materials like cork, natural latex, and jute, which sets the brand apart in a crowded market. This commitment to quality and support for a natural walking experience underpins Birkenstock’s success, ensuring customer loyalty and repeat purchases.
The financial engine of Birkenstock is driven primarily by its retail and wholesale distribution channels, spanning direct-to-consumer online platforms, brand-owned stores, and partnerships with high-end retailers. A pivotal component of its strategy is to capitalize on the growing trend of wellness and comfort in fashion, which has broadened its appeal beyond traditional markets. The company has further diversified its portfolio with lifestyle products, including sleep systems and natural cosmetics, all harmonizing with the brand’s emphasis on well-being. Leveraging its storied heritage, Birkenstock has adeptly navigated economic challenges, balancing tradition with modern sensibilities to generate revenue and sustain growth, while constantly redefining the intersection between footwear, health, and lifestyle.
Birkenstock Holding PLC, a symbol of comfort, craftsmanship, and longstanding tradition, has cemented its position in the global footwear industry through innovation while steadfastly adhering to its heritage. Born in Germany with roots tracing back to 1774, the company is synonymous with its meticulously crafted contoured footbeds that have earned a loyal following over centuries. Birkenstock operates with a straightforward but effective business model: it designs, manufactures, and sells high-quality, ergonomic footwear. The fundamental philosophy revolves around sustainability and precision, using premium materials like cork, natural latex, and jute, which sets the brand apart in a crowded market. This commitment to quality and support for a natural walking experience underpins Birkenstock’s success, ensuring customer loyalty and repeat purchases.
The financial engine of Birkenstock is driven primarily by its retail and wholesale distribution channels, spanning direct-to-consumer online platforms, brand-owned stores, and partnerships with high-end retailers. A pivotal component of its strategy is to capitalize on the growing trend of wellness and comfort in fashion, which has broadened its appeal beyond traditional markets. The company has further diversified its portfolio with lifestyle products, including sleep systems and natural cosmetics, all harmonizing with the brand’s emphasis on well-being. Leveraging its storied heritage, Birkenstock has adeptly navigated economic challenges, balancing tradition with modern sensibilities to generate revenue and sustain growth, while constantly redefining the intersection between footwear, health, and lifestyle.
Revenue Growth: Birkenstock reported first quarter revenues of EUR 402 million, up 11% on a reported basis and 18% in constant currency, beating its annual guidance of 13%–15% growth.
Geography & Channels: Strong performance across all regions, with APAC up 37% in constant currency. B2B channel outpaced DTC, growing 24% in constant currency versus 12% for DTC.
Margins & Profit: Gross profit margin was 55.7%, down 460 bps YoY due to FX and tariffs. Adjusted EBITDA margin was 26.5%, down 170 bps, but would have been up excluding FX and tariffs.
Outlook Maintained: Management reaffirmed full-year constant currency revenue growth guidance of 13%–15%, despite Q1 coming in ahead. Full-year revenue expected at EUR 2.3–2.35 billion.
FX & Tariffs: Significant FX and tariff headwinds expected to continue, with an estimated 350 bps FX drag on full-year revenue growth and 200 bps margin impact.
Brand Health: Sell-through at full price remains over 90% across all channels; order books are strong and scarcity is maintained by fulfilling only 70%–80% of wholesale demand.
DTC Strategy: Company accelerating own retail expansion, with 9 new stores opened in the quarter and strong retail sales up over 50% YoY. E-commerce remains 80% of DTC revenue.
Share Repurchases: Birkenstock plans to repurchase $200 million in shares in fiscal 2026, subject to market conditions.
