Birkenstock Holding's Q3 2025 earnings exceeded expectations, with revenue at €635.0m (up 12% YoY), net income of €129.2m (up 73% YoY), and EPS at €0.69 (up 15% YoY). The profit margin increased to 20% from 13% in Q3 2024, driven by higher revenue. The company's shares are up 4.8% from a week ago.
Birkenstock Holding plc (NYSE: BIRK) reported strong fiscal third-quarter 2025 results, with revenue reaching €635.0 million, up 12% year-over-year (YoY). The company's net income surged to €129.2 million, marking a 73% increase from the same period last year. Earnings per share (EPS) improved to €0.69, up 15% YoY. The profit margin expanded to 20% from 13% in Q3 2024, driven by higher revenue. The company's shares are up 4.8% from a week ago.
Key highlights include double-digit revenue growth across all segments: Americas (+16% constant currency), EMEA (+13%), and APAC (+24% constant currency). B2B revenue grew 18% in constant currency, while direct-to-consumer (DTC) increased 12%. The company opened 13 new stores during Q3, bringing the total retail locations to 90. Birkenstock reaffirmed its FY2025 guidance, expecting revenue growth at the high end of 15-17% range in constant currency and Adjusted EBITDA margin of 31.3-31.8%. The company also completed a €176 million share buyback, repurchasing 3.9 million shares.
The growth story is well-balanced across all dimensions. Geographically, all segments delivered double-digit constant currency growth. From a channel perspective, B2B grew 18% and DTC grew 12% in constant currency. Closed-toe footwear continues to outpace sandals, gaining 400 basis points of revenue share year-over-year. This category expansion reduces seasonality risk and supports Average Selling Price (ASP) growth. The physical retail footprint continues expanding with 13 new stores in Q3, bringing the total to 90 globally.
The company's cash position remains solid at €262 million with net leverage at 1.7x (would have been 1.4x without the €176 million share repurchase). The confidence in their outlook is evident with management reaffirming guidance for FY2025, expecting revenue growth at the high end of 15-17% range in constant currency and Adjusted EBITDA margin of 31.3-31.8%.
References:
[1] https://www.stocktitan.net/news/BIRK/birkenstock-reports-fiscal-third-quarter-2025-results-with-16-vnsbh7eany6n.html
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