Birkenstock Holding plc shares are up more than 17 percent in early trading on Thursday after the German company reported a solid quarter.
The German footwear firm said third-quarter profits for the period ended June 30 were 109.6 million euros, or 60 cents a diluted share, down 15.2 percent from 129.2 million euros, or 69 cents, in the same year-ago three months. Revenue rose 13.3 percent to 719.5 million euros from 635.0 million euros. And while profits were down, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reflected a margin of 33.7 percent, which was better than the consensus estimate of 33.1 percent.
The company said it saw double-digit revenue growth across all segments, with Americas up 11.0 percent, Europe, Middle East and Africa up 15 percent and Asia-Pacific up 18 percent. Direct-to-consumer revenue rose 14 percent, while wholesale revenue rose 13 percent, driven by growth from existing doors via an expanded assortment of Birkenstock styles, high sales velocity and strong full-price realization, the company said.
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For the nine months, profits were down 4.9 percent to nearly 241 million euros on a 10.7 percent gain in revenue to 1.74 billion euros.
The company said gross profit margin was down 140 basis points to 59.1 percent, attributable to unfavorable foreign exchange and incremental U.S. tariffs.
Birkenstock’s chief executive officer Oliver Reichert said the company was raising its outlook for fiscal 2026 due to the third quarter performance.
The company raised revenue growth to 15 percent for fiscal 2026 and adjusted EBITDA to at least 710 million euros.
“We continue to execute as planned across the business. Direct-to-consumer growth accelerated, outpacing B2B growth in the quarter, supported by the investments we are making in both own-retail and our digital business,” Reichert said.
He added that the firm’s closed-toe share of the business continues to expand led by newness in both clogs and shoes.
Reichert’s been fairly confident of the brand’s future, noting even in the second quarter that it has “very strong” full-price sell-through.
Birkenstock added 13 new stores during the quarter, bringing the total number of company-owned doors to 124 at the end of the third quarter.
Birkenstock said it continues to invest in production capacity to meet consumer demand. It invested 26 million euros in capital expenditures during the third quarter to add production capacity and expand retail operations globally.
“Overall, we continue to see Birkenstock as well positioned to take additional shelf space with key retail partners, while expanding its standalone store footprint,” Dana Telsey, chief investment officer at Telsey Advisory Group, wrote in a preliminary report on Birkenstock shortly after the earnings disclosure. “As consumers remain intentional with their purchases, we see Birkenstock as a brand that can continue to win in the marketplace through its competitive advantage of a high-end lifestyle positioning but at accessible price points, supported by its proprietary foot bed that provides solutions for its customers.”
Guggenheim Securities analyst Simeon Siegel said that the fiscal year 2026 revenue raise to the high-end of guidance implies a fourth quarter revenue report in the range of 595 million euros, or below the Street’s current consensus expectation of 604 million euros.
He said key areas for further discernment center on supply and demand as well as channel and geographic mix dynamics, more color on fourth quarter expectations, trends — and additional detail on production capacity increases.
