Birkenstock shares pop 20% to 3-week high after strong fiscal Q3; company raises annual revenue forecast

Shares of Birkenstock Holding surged 20% in Thursday's trade, reaching a three-week high of $46.30 on the NYSE, after the company reported better-than-expected fiscal third-quarter results and raised its full-year sales growth forecast, indicating that the demand for its products will stay strong.

It is benefiting from the growing appetite for its closed-toe sneakers, boots, clogs, and slippers, which often command higher prices than the classic sandals.

For the quarter ended June, the company reported 13% year-on-year revenue growth on a reported basis and 15% in constant currency to €720 million in the June quarter, at the high end of its 13-15% sales growth target for fiscal 2026.

Revenue growth remained in double digits across all regions, rising 14% in the Americas, 15% in EMEA, and 18% in APAC on a constant-currency basis. Direct-to-consumer (DTC) revenue growth outpaced B2B growth, accelerating 14% on a reported basis and 16% in constant currency, supported by strength across both digital and physical stores.

The German company, which traces its roots back to the late 18th century, has been seeking to expand market share as rivals struggle with trade levies and other complications. It also expanded its range of cheaper plastic footwear, which is drawing new customers and convincing long-time fans to pick up extra pairs that are geared toward the beach.

Strong pricing power and brand loyalty have helped companies such as Birkenstock, which cater to wealthier consumers, remain relatively insulated from the broader pullback in US discretionary spending that has affected much of the apparel and footwear sector.

At the bottom line, net profit declined 15% year-on-year to €110 million, while EPS fell 13% to €0.60 from €0.69 in the same period of 2025. The decline was primarily due to €22 million in non-recurring, non-cash expenses related to the accelerated share repurchase and refinancing of senior notes.

Excluding these expenses, adjusted net profit rose 15% to €134 million, while adjusted EPS increased 19% to €0.74 year-on-year. On the operating front, adjusted EBITDA increased 11% to €242 million, while the adjusted EBITDA margin stood at 33.7%, down 70 basis points from 34.4% in the year-ago period.

The margin decline was primarily due to unfavourable currency translation, which impacted margins by 60 basis points, and incremental US tariffs, which had a 70-basis-point impact. These factors were partly offset by improved capacity absorption.

Meanwhile, on 30 June 2026, the company completed a €230 million accelerated share repurchase programme, reducing its outstanding share count by approximately 6 million shares.

Lifts FY26 revenue growth forecast to 15%

The company now expects revenue growth of 15% on a constant-currency basis for the fiscal year that ends in September, according to a statement on Thursday, compared with its earlier forecast of a 13% to 15% rise. This implies a revenue of as much as €2.35 billion.

It also sees adjusted earnings before interest, taxes, depreciation, and amortisation of at least €710 million. It maintained its annual profit forecast of €1.90 to €2.05 per share.

(With inputs from Reuters and Bloomberg)

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