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Birkenstock tops revenue view, raises FY2026 guidance
Third-quarter revenue rose to €719.5 million, while adjusted EPS of €0.74 missed estimates and gross margin fell 130 basis points to 59.2% amid tariff and currency pressure.
Birkenstock Group AG posted third-quarter results for fiscal year 2026, beating revenue expectations as consumers continued to buy its footwear brands. The company reported revenue of €719.5 million, ahead of expectations of €713.5 million, and said growth was broad-based across regions even as bottom-line results were pressured.
Despite the top-line beat, adjusted earnings per share came in at €0.74, slightly below the €0.76 estimate. The company attributed pressure to unfavorable currency translation and incremental U.S. tariffs, while also noting that both revenue and EPS were higher year over year.
Birkenstock raised its full FY2026 guidance, reflecting management's view that demand remains solid. Direct-to-consumer revenue accelerated to $278 million, up 16% in constant currency, while wholesale revenue grew 15% in constant currency to $442 million, bringing DTC to 39% of total revenue.
Margins and the balance sheet added complexity to the quarter. Adjusted gross margin declined 130 basis points year over year to 59.2%, and adjusted EBITDA margin fell 70 basis points to 33.7%, while operating cash flow was around $250 million and net leverage rose to 1.8x adjusted EBITDA from 1.5x at the start of the fiscal year, with management projecting 1.4x excluding cash outflow.