Birkenstock Holding 2025 Q4 Earnings Record Net Income Surges 78.9%

Birkenstock Holding (BIRK) reported Q4 2025 earnings that exceeded expectations, with revenue and net income growth outpacing guidance. The company’s fiscal 2026 outlook, however, reflects tempered expectations due to production constraints and external headwinds.

Revenue

Birkenstock’s total revenue surged 15.5% year-over-year to $526.34 million in Q4 2025, driven by strong global demand. Regional performance highlighted robust growth: the Americas saw 15% reported revenue growth (18% in constant currency), EMEA rose 16% (17% constant currency), and APAC delivered the strongest results with 33% reported growth (38% constant currency). Closed-toe shoes, now accounting for 38% of sales, contributed significantly to the expansion, outpacing sandals and clogs.

Earnings/Net Income

Earnings per share (EPS) soared 82.7% to $0.51 in Q4 2025, reflecting a record $93.87 million net income—a 78.9% increase from the prior year. This marked the highest Q4 net income in three years, underscoring improved profitability despite currency and tariff pressures. The EPS growth aligns with the company’s strategic focus on premium pricing and disciplined distribution.

Price Action

Post-earnings, BIRK’s stock price declined 5.51% in the latest trading day and 8.64% for the week, but gained 4.10% month-to-date.

Post-Earnings Price Action Review

The strategy of buying BIRK when revenues beat and holding for 30 days yielded a 13.26% return, underperforming the benchmark’s 56.72%. With a Sharpe ratio of 0.14, the strategy’s returns were modest relative to risk, though its 0.00% maximum drawdown indicated resilience during market downturns.

CEO Commentary

CEO Oliver Reichert emphasized 18% constant currency revenue growth and a 31.8% adjusted EBITDA margin, calling 2025 the brand’s strongest year in over 250 years. Strategic priorities include expanding owned retail (targeting 150 stores by 2027), APAC acceleration, and production capacity investments. Challenges include tariffs and FX headwinds, which are expected to pressure margins.

Guidance

For fiscal 2026, Birkenstock targets 13-15% constant currency revenue growth (€2.3-2.35 billion) and adjusted EBITDA of at least €700 million (30-30.5% margin). EPS guidance is €1.90-2.05, with FX impacts expected to reduce gross margin to 57-57.5%.

Additional News

Birkenstock announced a $200 million share repurchase program in 2026, signaling confidence in its valuation. The company also plans to open 40 new retail stores, expanding its global footprint to 137 locations by 2026. Analysts at Jefferies cut their price target to $60 from $80, citing supply constraints and FX headwinds, while maintaining a “Buy” rating.

The company’s 16% revenue growth in fiscal 2025 (€2.1 billion) surpassed guidance, driven by strong B2B and APAC performance. Despite challenges, Birkenstock’s premium pricing strategy and brand resilience position it for long-term growth.