Birkenstock Holding plc reported third quarter fiscal 2025 results that showed continued momentum across all business segments, with revenue reaching €635 million ($739 million) for the quarter ended June 30, 2025. The German footwear company posted 12% revenue growth on a reported basis and 16% growth in constant currency terms compared to the same period last year.
“Our third quarter results prove the strong foundation of our brand,” CEO Oliver Reichert said in a statement.
Birkenstock’s revenue growth was driven by high single-digit unit growth and mid-single-digit increases in average selling prices, with growth of closed-toe shoes continuing to outperform sandals and contributing to higher overall pricing.
Regional Results
All three of Birkenstock’s geographic segments delivered double-digit revenue growth during the quarter.
The Americas segment generated revenue growth of 10% on a reported basis and 16% in constant currency. Both wholesale and DTC channels achieved double-digit growth in constant currency terms. The company expanded its retail footprint by opening three new stores in Houston, Deer Park, and Naperville, bringing its total owned stores in the Americas to 13.
In the EMEA region, revenue increased 13% in both reported and constant currency terms. The segment saw double-digit growth in both wholesae and DTC channels. New store openings in The Hague and San Sebastián, Spain, brought the total number of owned stores in EMEA to 39.
The APAC segment recorded the strongest increase, with revenue rising 21% on a reported basis and 24% in constant currency. Birkenstock opened eight new owned stores in the region during the quarter, expanding its APAC store count to 38. The company also grew its network of mono-brand partner stores by more than 20% in the region.
Channel Mix and Product Performance
Wholesale revenue grew 15% on a reported basis and 18% in constant currency. The increase was supported by strong demand and sell-through performance at key retail partners.
DTC revenue, encompassing owned retail stores and e-commerce, increased 9% in reported terms and 12% in constant currency. Birkenstock opened 13 new owned retail stores during the quarter, bringing its total owned store count to 90 locations globally.
Closed-toe shoes continued to gain share within the product mix, with their portion of total revenue increasing 400 basis points year-over-year. This shift contributed to the mid-single-digit growth in average selling prices across the business.
Financial Metrics and Profitability
Gross profit margin improved to 60.5%, up 100 basis points from 59.5% in the third quarter of fiscal 2024. The improvement was attributed to sales price adjustments net of input costs and better absorption of manufacturing capacity, partially offset by unfavorable currency translation effects and channel mix changes.
Net profit reached €129 million ($150 million), representing a 73% increase. Earnings per share increased 75% to €0.69 ($0.80).
Adjusted net profit totaled €116 million ($135 million), up 26%. Adjusted earnings per share rose 27% to €0.62 ($0.72).
Adjusted EBITDA grew 17% year-over-year to €218 million ($253 million). The adjusted EBITDA margin expanded 140 basis points to 34.4%.
Birkenstock Not Sweating Tariffs
CEO Reichert highlighted the company’s margin improvements, stating that “significant margin improvement in the quarter driven by sales price adjustments net of inflation and better absorption” positions the company to meet its adjusted EBITDA margin target despite currency headwinds.
The company believes it is “well-positioned to manage the impact of the current 15% U.S./EU tariff agreement through a combination of pricing adjustment, cost discipline and inventory management to protect the long-term health and profitability of the Birkenstock brand,” Reichert said.
Fiscal 2025 Guidance Reaffirmed
Birkenstock maintained its guidance for fiscal 2025, expecting revenue growth at the high end of its 15%-17% range in constant currency terms. The company continues to forecast adjusted EBITDA margin in a range of 31.3%-31.8%.
The company remains committed to reducing debt, targeting approximately 1.5x net leverage by the end of fiscal 2025.
