Strong final quarter: Birkenstock exceeds its revenue targets for the 2024/25 financial year

German footwear provider Birkenstock has continued its growth trajectory in the 2024/25 financial year, as expected. Revenue even exceeded the forecasts, which were raised at the end of September. This was revealed in a recent business report published on Thursday by its parent company, Birkenstock Holding plc, which is listed on the New York Stock Exchange.

In the most recent financial year, which ended on September 30, the group's revenue reached 2.1 billion euros. This represented a 16 percent increase compared to the previous year. Adjusted for currency fluctuations, revenue grew by 18 percent.

In the final quarter, the company increased its revenue by 15 percent (a 20 percent increase on a constant currency basis) to 526.3 million euros, exceeding its own expectations.

Birkenstock achieves double-digit revenue growth across all regions

In the wholesale business, annual revenue increased by 20 percent (a 21 percent increase on a constant currency basis) to almost 1.3 billion euros. The direct-to-consumer retail business achieved an eleven percent increase (a 12 percent increase on a constant currency basis), reaching 794.8 million euros.

Birkenstock also recorded double-digit growth across all market regions in the past year. In the Americas, revenue rose by 15 percent (an 18 percent increase on a constant currency basis) to almost 1.1 billion euros. In the EMEA region, which includes Europe, the Middle East and Africa, it grew by 14 percent on both a reported and constant currency basis to 785.2 million euros.

The Asia-Pacific region showed the most dynamic development, with a revenue increase of 31 percent (a 34 percent increase on a constant currency basis) to 221.8 million euros.

Reported net profit increases by 82 percent

Despite higher import tariffs in the US and unfavourable currency effects, the gross margin increased to 59.1 percent from 58.8 percent in the previous year. This was driven by price adjustments and improved utilisation of production facilities. This led to the adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increasing by 20 percent to 667 million euros. The adjusted EBITDA margin was 31.8 percent, placing it at the upper end of the forecast range.

Reported net profit reached 348 million euros, an 82 percent increase on the previous year. Adjusted for special items, net profit rose by 44 percent to 346 million euros.

Management forecasts further growth

For the current 2025/26 financial year, management expects further strong growth. A revenue increase of ten to 12 percent is forecast (a 13 to 15 percent increase on a constant currency basis), to between 2.30 and 2.35 billion euros. This will be supported by the opening of approximately 40 new company-owned stores.

Adjusted EBITDA is expected to increase to at least 700 million euros. However, the company anticipates that the adjusted EBITDA margin will decrease to between 30.0 and 30.5 percent due to higher tariffs and negative currency effects.

This article was translated to English using an AI tool.

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