Birkenstock Holding plc (NYSE:BIRK) reported its fiscal first-quarter 2026 results, delivering revenue growth that exceeded its own annual target but falling short of Wall Street's more optimistic sales expectations. The market's initial reaction was muted, with shares trading slightly lower in pre-market activity.
Earnings and Revenue Versus Estimates
The German footwear maker reported revenue of €402 million ($393.9 million) for the quarter ended December 31, 2025. This represents an 11% increase on a reported basis and an 18% jump in constant currency terms. While the constant-currency growth surpassed the company's full-year guidance range of 13-15%, it came in below the analyst consensus estimate of approximately €410 million.
On the bottom line, the company reported an adjusted earnings per share (EPS) of €0.26. This figure was essentially in line with analyst estimates, which had anticipated EPS of €0.26.
- Revenue: €402M reported vs. €410M estimated (miss)
- Adjusted EPS: €0.26 reported vs. €0.26 estimated (in-line)
Market Reaction and Price Action
Following the release, BIRK shares were indicated down approximately 2.4% in pre-market trading. This negative drift suggests investor focus may be on the top-line revenue miss against estimates, despite the strong underlying growth rate. The stock's performance over recent weeks has been mixed, with slight gains over the past two weeks but a decline over the past month, indicating some investor caution heading into the earnings report.
Key Highlights from the Quarter
The quarter was driven by robust holiday demand, particularly for seasonal products like clogs, boots, and shearling-lined footwear. The company emphasized its successful expansion beyond its classic sandals into a year-round brand.
- Geographic Performance: All regions saw double-digit constant currency growth.
- Americas: +14% (constant currency)
- EMEA: +17%
- APAC: +37%
- Channel Performance: The business-to-business (B2B) wholesale channel was the primary growth driver, up 24% in constant currency, indicating strong sell-through with retail partners. Direct-to-consumer (DTC) revenue grew 12%.
- Margin Pressure: The company's gross profit margin contracted to 55.7%, down 460 basis points from the prior year. Management cited unfavorable currency translation, incremental U.S. tariffs, and the acquisition of its Australian distributor as primary headwinds. Adjusted EBITDA margin also declined slightly to 26.5%.
- Strategic Investments: The company continues to invest heavily in its vertically integrated supply chain, with capital expenditures of approximately €38 million during the quarter, including the purchase of a new production site.
Outlook and Forward Estimates
In its recent Capital Markets Day, Birkenstock outlined a three-year plan calling for constant currency revenue growth of 13-15% and an adjusted EBITDA margin exceeding 30%. The Q1 constant currency growth of 18% positions the company ahead of that pace early in the fiscal year.
Looking ahead, analyst estimates for the full fiscal year 2026 project revenue of approximately €2.39 billion. For the upcoming second quarter, the consensus is for revenue of about €643 million.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the earnings and estimates data for BIRKENSTOCK HOLDING PLC (NYSE:BIRK).
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
