Birkenstock Holding 2025 Q2 Earnings Strong Performance as Net Income Surges 46.7%

Birkenstock Holding (BIRK) reported its fiscal 2025 Q2 earnings on May 15th, 2025. The company exceeded analyst expectations with a notable increase in net income and earnings per share. Birkenstock raised its annual guidance, expecting revenue growth at the high end of its previous forecast. The company’s strong performance was driven by double-digit growth in both volume and average selling prices, demonstrating resilience and strategic prowess in navigating unpredictable global conditions.

Revenue
Birkenstock Holding saw a substantial rise in total revenue, reaching $574.33 million in 2025 Q2, representing a 19.3% increase from the previous year. The B2B segment was the primary contributor, generating $432.48 million, while the direct-to-consumer (DTC) segment added $140.71 million. Other revenue streams, although minor, contributed $1.14 million, culminating in the total revenue of $574.33 million.

Earnings/Net Income
Birkenstock Holding experienced a significant earnings boost, with EPS increasing by 47.4% to $0.56 in 2025 Q2, compared to $0.38 in 2024 Q2. Net income also surged remarkably by 46.7%, reaching $105.11 million, marking the highest fiscal Q2 net income in three years. The EPS growth reflects Birkenstock's robust financial performance.

Price Action
The stock price of Birkenstock Holding has edged down 2.27% during the latest trading day, has jumped 9.97% during the most recent full trading week, and has surged 19.19% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing BIRK shares when revenue exceeds expectations and holding for 30 days has proven effective, yielding a 40.96% return that significantly outpaces the benchmark. Despite the impressive return, this approach carries a considerable risk, evidenced by a maximum drawdown of -38.29%. Additionally, the Sharpe ratio of 0.54 denotes moderate risk and reward. Investors engaging in this strategy should consider the potential volatility and weigh it against the favorable returns. Overall, while the strategy delivers strong performance, it requires careful risk management to mitigate potential losses.

CEO Commentary
Oliver Reichert, CEO of Birkenstock Holding plc, emphasized the company's strong performance amid unpredictable global conditions, stating, "We have passed this test very well." He highlighted record revenues of €574 million, a 19% year-over-year increase, driven by double-digit growth in both volume and average selling prices (ASP). Reichert noted the importance of the company’s vertical supply chain, stating that "95% of our products are made in Germany," which helps mitigate disruptions. He expressed confidence in expanding retail presence, aiming for 100 owned stores by the fiscal year's end, and described the current market dynamics as an opportunity for growth, particularly in closed-toe silhouettes.

Guidance
Birkenstock Holding expects to achieve revenue growth at the high end of its guidance, targeting 15% to 17% in constant currency. Adjusted EBITDA margin guidance has been raised to 31.3% to 31.8%, with an adjusted EBITDA target between €660 million and €670 million, reflecting a year-over-year increase of 19% to 21%. The company plans to invest approximately €80 million in capital expenditures for the year, focusing on production capacity and retail expansion.

Additional News
Raymond James Financial Inc. acquired a new position in Birkenstock Holding plc in the fourth quarter, purchasing 4,987 shares valued at approximately $283,000. This acquisition reflects growing interest from institutional investors. In addition, Signaturefd LLC notably increased its stake in the company by 642.6%, now owning 505 shares. Furthermore, the company has seen an increase in ownership from Bank Julius Baer & Co. Ltd Zurich and JPMorgan Chase & Co., indicating strong institutional confidence in Birkenstock's market potential. These movements highlight the momentum and investor interest in Birkenstock's strategic growth.