Skip to content
    BIRK
    Earnings call· Mar 2026(Q2 FY26)

    Birkenstock Holding Q2 FY26 earnings call BIRK

    May 13, 2026 Source

    Executive summary

    Birkenstock Q2 FY26 — Strong Growth Amidst Headwinds

    Birkenstock demonstrated resilience in Q2 FY26, achieving strong constant currency revenue growth and maintaining robust adjusted EBITDA margins despite significant FX and tariff headwinds, as well as geopolitical disruptions. The company continues to execute on its white space growth opportunities, particularly in APAC and D2C channels, while reiterating its full-year guidance amidst an uncertain global environment. All financial figures are stated in EUR, despite the metadata indicating USD.

    Highlights

    5

    • Revenue grew over 14% in constant currency, within the target range of 13% to 15%.

    • Adjusted EBITDA margin remained strong at over 32% despite FX and tariff impacts.

    • APAC grew 30% in constant currency, more than 2x the pace of other regions.

    • D2C own retail grew over 60% year-over-year in constant currency, with double-digit same-store sales growth.

    • Americas business was up 14% in constant currency, driven by strong B2B growth and over 30% sell-through at key partners.

    Concerns

    5

    • Strong depreciation of the U.S. dollar, Canadian dollar, and Asian currencies caused a 640 basis point headwind to revenue growth.

    • Middle East conflicts reduced EMEA revenue by EUR 6 million and growth by about 300 basis points.

    • Adjusted gross profit margin was down 310 basis points year-over-year, with 230 basis points from FX and 90 basis points from incremental U.S. tariffs.

    • Adjusted EBITDA was down 1% year-over-year, primarily due to a EUR 27 million FX impact.

    • Adjusted EPS for Q2 was EUR 0.50, down 9% year-over-year, impacted by EUR 17 million FX and a EUR 15 million noncash expense.

    Guidance & targets

    20
    CategoryTargetConfidence
    Full-year 2026 constant currency revenue growth
    13% to 15%
    high materiality
    High
    Full-year 2026 reported revenue growth
    10% to 12%
    high materiality
    High
    Full-year 2026 reported revenue
    EUR 2.3 billion to EUR 2.35 billion
    high materiality
    High
    Full-year 2026 adjusted gross margin
    57% to 57.5%
    high materiality
    High
    Full-year 2026 adjusted EBITDA
    at least EUR 700 million
    high materiality
    High
    Full-year 2026 adjusted EBITDA margin
    30% to 30.5%
    high materiality
    High
    Full-year 2026 expected tax rate
    26% to 28%
    medium materiality
    High
    Full-year 2026 adjusted EPS
    EUR 1.90 to EUR 2.05
    high materiality
    High
    Full-year 2026 Capital expenditures
    EUR 110 million to EUR 130 million
    medium materiality
    High
    End of FY26 net leverage target
    1.3x to 1.4x
    medium materiality
    High
    Share repurchase program
    $200 million total consideration
    medium materiality
    High
    Q3 FY26 revenue growth (constant currency)
    within 13% to 15%
    medium materiality
    High
    Q4 FY26 revenue growth (constant currency)
    within 13% to 15%
    medium materiality
    High
    Q3 FY26 FX headwind to reported revenue growth
    approximately 200 basis points
    medium materiality
    High
    Q4 FY26 FX headwind to reported revenue growth
    neutral
    medium materiality
    High
    Q3 FY26 tariff impact on gross margin and EBITDA margin
    about 100 basis points
    medium materiality
    High
    Q4 FY26 tariff impact on gross margin and EBITDA margin
    around 50 basis points
    medium materiality
    High
    Q3 FY26 FX pressure on gross margin and EBITDA margin
    around 60 basis points
    medium materiality
    High
    Q4 FY26 FX pressure on gross margin and EBITDA margin
    neutral
    medium materiality
    High
    Recurring finance costs
    EUR 18 million to EUR 20 million
    low materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Americas
    Growth in constant currency, driven by strong B2B performance and sell-through at key partners. Strong D2C same-store growth.
    B2B growth: strongSell-through at partner doors: up over 30%D2C same-store growth: strongNew stores added: 2Total stores: 17
    		—14%——
    EMEA
    Growth in constant currency, strong result despite negative impacts from Middle East conflicts and muted consumer sentiment in Europe.
    Revenue reduction due to Middle East conflicts: EUR 6 millionGrowth reduction due to Middle East conflicts: 300 bps
    		—11%——
    APAC
    Growth in constant currency, in line with expectations, with D2C retail leading. High quality growth with double-digit ASP increase.
    Growth rate vs other regions: more than 2xStrongest growth markets: India, China, JapanClosed-toe penetration: highest in quarterASP: highest in quarter
    		—30%——
    B2B Channel
    Growth in constant currency, on the back of continued strong demand at key partners.
    		—15%——
    D2C Channel
    Sustaining double-digit growth in constant currency. Own retail was very strong, with accelerated same-store sales growth.
    Own retail growth: over 60% constant currencySame-store sales growth: double digits
    		—12%——

    Operational metrics

    39
    Revenue
    EUR 618 millionup 8%
    Q2 FY26

    Reported basis. All financial figures are stated in EUR, despite the metadata indicating USD.

    Revenue growth
    14%
    Q2 FY26

    Constant currency. All financial figures are stated in EUR, despite the metadata indicating USD.

    FX headwind to revenue growth
    640
    Q2 FY26

    Due to strong depreciation of USD, CAD, and Asian currencies. All financial figures are stated in EUR, despite the metadata indicating USD.

    Average EUR to U.S. dollar rate
    $1.17up from $1.05 in Q2 FY25
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Gross profit margin
    53.9%down 380 bps YoY
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Adjusted gross profit margin
    54.6%down 310 bps
    Q2 FY26

    Including reversal of distributor markup associated with acquisition of Australian distribution partner. All financial figures are stated in EUR, despite the metadata indicating USD.

    Adjusted gross profit margin (ex-FX and tariffs)
    up 10 bpsYoY
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Selling and distribution expenses
    EUR 138 millionup 40 bps from prior year (as % of revenue)
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    General and administration expenses
    EUR 33 milliondown 30 bps year-over-year (as % of revenue)
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Adjusted EBITDA
    EUR 198 milliondown 1% YoY
    Q2 FY26

    Primarily due to tariffs and currency translation impacts. All financial figures are stated in EUR, despite the metadata indicating USD.

    FX impact on adjusted EBITDA
    EUR 27 millionreduced
    Q2 FY26

    Flow-through of FX effects. All financial figures are stated in EUR, despite the metadata indicating USD.

    Adjusted EBITDA (ex-FX impact)
    up 13%
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Adjusted EBITDA margin
    32.1%down 270 bps YoY
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Adjusted EBITDA margin (ex-FX and tariffs)
    up 60 bpsYoY
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Adjusted net profit
    EUR 93 milliondown 10% YoY
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Adjusted EPS
    EUR 0.50down 9% from EUR 0.55
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    FX impact on adjusted net profit
    EUR 17 millionnegatively impacted
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    FX impact on adjusted EPS
    EUR 0.09negatively impacted
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Noncash expense from senior notes derivative
    EUR 15 million
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Operating cash generated
    EUR 29 millionvs use of EUR 18 million in Q2 2025
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Cash and cash equivalents
    EUR 201 million
    Q2 FY26

    As of March 31, 2026. All financial figures are stated in EUR, despite the metadata indicating USD.

    Inventory to sales ratio
    39%up from 36% a year ago
    Q2 FY26

    Primary reason due to FX. All financial figures are stated in EUR, despite the metadata indicating USD.

    Inventory to sales ratio (currency-neutral)
    37%
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Raw materials and semi-finished goods growth
    19%YoY
    Q2 FY26

    Main driver of inventory increase. All financial figures are stated in EUR, despite the metadata indicating USD.

    Days Sales Outstanding (DSO)
    49 daysup from 46 days a year ago
    Q2 FY26

    Primarily due to higher B2B mix and timing of large shipments. All financial figures are stated in EUR, despite the metadata indicating USD.

    Capital expenditures
    EUR 21 million
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Net leverage
    1.7xup from 1.5x at September 30, 2025
    Q2 FY26

    As of March 31, 2026, due to normal cash seasonality. All financial figures are stated in EUR, despite the metadata indicating USD.

    Closed-toe penetration
    up 300 bps
    Q2 FY26

    Driven by strong growth in clogs. All financial figures are stated in EUR, despite the metadata indicating USD.

    Owned retail doors
    5opened
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Full price sell-through
    over 90%
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Membership base
    almost 13 million
    current

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Noncash gain from senior notes derivative
    EUR 10 million
    Q1 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Tariff claims refund estimate
    EUR 30 million
    future

    Estimated refund claims from U.S. Supreme Court ruling striking down IEEPA tariffs. Timing is uncertain. All financial figures are stated in EUR, despite the metadata indicating USD.

    Current tariff rate
    just over 20%
    current

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Tariff rate (pre-April '25)
    just over 10%
    pre-April 2025

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Tariff rate (April '25)
    25%
    April 2025

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Tariff rate (July '25)
    just over 15%
    July 2025

    After European Union agreement. All financial figures are stated in EUR, despite the metadata indicating USD.

    Non-Boston closed-toe growth
    much higher pacevs Boston
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Top styles (closed-toe)
    11 out of 20
    Q2 FY26

    All financial figures are stated in EUR, despite the metadata indicating USD.

    Industry KPIs

    8
    MetricValueDetails
    Effective tax rate26% to 28%%
    Inventory position39%%
    Revenue by channel—
    Operating margin sg a32.1%%
    Store fleet door investment111stores
    Share buyback capital return$200 millionUSD
    Tariff cost exposure recoveryjust over 20%%
    Franchise product cycle performance—

    Product announcements

    1
    ProductTypeDetails
    Santa Clarita, Ballerina styleupdate

    Risks & headwinds

    5
    Middle East ConflictsQ2 FY26 and H2 FY26

    Reduced EMEA revenue by EUR 6 million (300 bps growth impact) in Q2 FY26; identified EUR 10-12 million revenue risk in EMEA for H2 FY26.

    Mitigation: Secured alternative delivery routes; steering products originally intended for Middle East to other regions (especially APAC); increased focus on Saudi Arabia.

    Inflation and Energy CostsQ2 FY26 and remainder of 2026

    US annual inflation rate jumped to 3.3% in March '26; Eurozone inflation reached 3% in April '26, driven by 11% increase in energy costs. Higher inflation in energy, freight rates, and petroleum-based raw materials.

    Mitigation: Strong inventory position mitigates exposure; pricing decisions address input cost inflation; no impact on overall FY26 margin guidance expected.

    FX DepreciationQ2 FY26 and full-year FY26 (350 bps headwind to revenue growth)

    Strong depreciation of USD, CAD, and Asian currencies caused 640 bps headwind to Q2 FY26 revenue growth; reduced adjusted EBITDA by EUR 27 million; reduced adjusted net profit by EUR 17 million; reduced adjusted EPS by EUR 0.09.

    Mitigation: Business resilience; ability to steer product between geographies and channels to optimize margins.

    Increased Tariff ExposureQ2 FY26 onwards

    U.S. Supreme Court ruling increased tariff exposure to just over 20% (including Section 122 temporary tariffs); estimated refund claims of EUR 30 million with uncertain timing.

    Mitigation: Strong inventory position in the U.S. (tariffed at a range of rates); targeted, granular pricing strategy; awaiting administrative steps for IEEPA refunds; not jumping to conclusions due to temporary Section 122 tariffs and ongoing trade negotiations.

    Muted Consumer Sentiment in EuropeQ2 FY26 onwards

    Reduced tourism in key cities and more cautious sentiment among local consumers, largely attributed to double-digit increase of energy costs and higher inflation.

    Mitigation: Ability to lean into stronger markets, stronger channels, and stronger product categories when softness is observed elsewhere.

    What to watch in Q3 FY26

    5

    EMEA Revenue Risk Offset

    H2 FY26
    CurrentEUR 10-12 million revenue risk identified for H2 FY26
    TargetRisk offset by other regional segments

    Why it matters

    Indicates the company's ability to reallocate product and mitigate regional geopolitical impact🌐s on overall revenue guidance.

    As per today, we identified approximately EUR 10 million to EUR 12 million of revenue risk in EMEA which, at this point, we believe we can offset with other regional segments. So there's no change in our overall revenue guidance.

    Q&A highlights

    8

    Break down factors in the H2 forecast (capacity, Middle East, channel mix) and elaborate on muted consumer sentiment in Europe.

    Management sees no slowdown in H2 FY26, with demand remaining strong and resilient despite headwinds. They attribute conservative guidance to Q3/Q4 being seasonally largest and DTC-heavy, particularly in EMEA, which is exposed to external changes. They are confident in delivering the 13-15% constant currency growth range.

    “The clear answer to the first part of your question is that we're not seeing any slowdown in second half of fiscal '26.”

    asked by Matthew Boss · answered by Oliver Reichert

    2 min read6 chapters

    Detailed Narrative

    01

    Global Headwinds and Resilience

    Birkenstock navigated multiple global conflicts, supply chain disruption🌐s, and rising energy costs, which fueled inflation and impacted consumer wallets. Despite these challenges, including a 3.3% US inflation rate in March '26 and 3% Eurozone inflation in April, the company demonstrated strong performance and resilience, reiterating its full-year guidance. Management highlighted its owned supply chain as a key shield against disruptions.

    02

    Strategic Growth Initiatives and Channel Performance

    The company continued to execute on its white space growth opportunities, with closed-toe penetration increasing by 300 basis points, driven by strong clog growth. Birkenstock opened 5 new owned retail doors, reaching 111 globally, and is on track for 140 by year-end FY26. Investments in online business are ongoing to drive conversion and growth, supported by a global membership base of almost 13 million.

    03

    Regional Performance Highlights

    APAC was a standout, growing 30% in constant currency, more than double the pace of other regions, with strong growth in India, China, and Japan, and notably higher ASPs. The Americas segment remained strong, up 14% in constant currency, boosted by B2B growth and over 30% sell-through at key partners. EMEA grew 11% in constant currency despite a EUR 6 million revenue reduction (300 bps impact) due to Middle East conflicts and muted consumer sentiment.

    04

    Margin Dynamics and Cost Pressures

    Gross profit margin was 53.9%, with adjusted gross profit margin at 54.6%, impacted by 230 basis points from FX and 90 basis points from incremental US tariffs. Adjusted EBITDA margin was 32.1%, with FX and tariff impact🌐s reducing it by 270 basis points. Excluding these factors, adjusted EBITDA margin would have been up 60 basis points to 35.4%. The company noted that pricing decisions are made to address input cost inflation.

    05

    Inventory and Working Capital Management

    The inventory to sales ratio was 39%, up from 36% year-over-year, primarily due to FX and an intentional 19% increase (EUR 26 million) in raw materials and semi-finished goods for preproduction to address bottlenecks. On a currency-neutral basis, the ratio was 37%. Days Sales Outstanding (DSO) increased slightly to 49 days due to higher B2B mix and timing of📎 large shipments, but receivables remain healthy with minimal credit losses.

    06

    Capital Allocation and Shareholder Returns

    Birkenstock spent EUR 21 million in CapEx, primarily on production capacity expansion in Arouca, Gorlitz, Stroth, Pasewalk, and the build-out of Wittichenau, as well as retail and IT investments. Net leverage stood at 1.7x. The company reiterated its intention to repurchase $200 million in shares during FY26, noting that no buybacks have occurred year-to-date but all options, including open market repurchases, are being considered.

    AI-generated summary of the company’s earnings call. Not investment advice.