Birkenstock Holding PLC (NYSE:BIRK) Q3 2025 Earnings: Revenue and EPS Miss Estimates but Margins Show Strength

BIRKENSTOCK HOLDING PLC (NYSE:BIRK) Reports Q3 2025 Earnings: Revenue and EPS Below Estimates, but Margins Improve

Birkenstock Holding PLC released its fiscal third-quarter 2025 results, posting revenue of €635 million ($691 million), a 12% year-over-year increase on a reported basis (16% in constant currency). While growth remained robust, the figure fell short of analyst estimates of €649.5 million. Earnings per share (EPS) came in at €0.69 ($0.75), up 75% from the prior year but below the consensus estimate of $0.79.

Key Financial Highlights

• Revenue Growth: Sales rose 12% YoY (16% in constant currency), driven by strong demand across all regions.
• Profitability Expansion: Gross margin improved by 100 basis points to 60.5%, while adjusted EBITDA margin expanded by 140 basis points to 34.4%.
• Regional Performance:
  • Americas: Revenue up 10% (16% in constant currency).
  • EMEA: Revenue up 13% (same in constant currency).
  • APAC: Revenue surged 21% (24% in constant currency).
• Channel Performance:
  • B2B (Wholesale): Revenue grew 15% (18% in constant currency).
  • DTC (Direct-to-Consumer): Revenue increased 9% (12% in constant currency).

Market Reaction

Shares of Birkenstock rose modestly in premarket trading, suggesting investor optimism despite the earnings miss. The stock has been volatile in recent weeks, with a slight decline over the past two weeks but a 5.2% gain over the past month. The positive reaction may reflect confidence in the company’s margin expansion and reaffirmed full-year guidance rather than the headline revenue and EPS figures.

Outlook vs. Analyst Estimates

Birkenstock reiterated its full-year 2025 revenue growth target at the high end of its 15-17% constant-currency range, aligning closely with analyst expectations of 17.4% growth. The company also maintained its adjusted EBITDA margin forecast of 31.3-31.8%, signaling confidence in profitability despite currency headwinds.

Strategic Moves

• Share Buybacks: The company repurchased and canceled 3.9 million shares for €176 million, reducing outstanding shares by 1.3 million.
• Store Expansion: Opened 13 new owned stores, bringing the total to 90 globally.
• Production Investments: Capital expenditures of €22 million were directed toward expanding manufacturing capacity.

Conclusion

While Birkenstock’s Q3 revenue and EPS missed expectations, the market’s reaction indicates a focus on margin improvements and sustained growth rather than a short-term earnings shortfall. The company’s ability to maintain pricing power and expand in key regions like APAC supports its long-term outlook.

For more detailed earnings estimates and future projections, view Birkenstock’s earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.