Summary of Birkenstock Q3 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: EUR 720 million, up 13% reported and 15% in constant currency, achieving the high end of the annual guidance of 13% to 15%.

Adjusted EBITDA: EUR 242 million, an 11% year-over-year increase; adjusted EBITDA margin at 33.7%, down 70 basis points due to FX and tariffs.

Adjusted Net Profit: EUR 134 million, up 15% year-over-year; adjusted EPS was EUR 0.74, a 19% increase from EUR 0.62.

Cash Flow: Generated EUR 247 million in operating cash; ended the quarter with EUR 694 million in cash and equivalents after a EUR 230 million share repurchase.

Net Leverage: Increased to 1.8x from 1.5x, influenced by share repurchase activities.

2Strategic Updates and Business Highlights

DTC Growth: Direct-to-consumer (DTC) revenue grew 50% in constant currency, driven by retail expansion and strong online performance.

Geographic Performance: EMEA revenue grew 15%, APAC grew 23% (excluding Australia, nearly 30%), and the Americas saw a 14% increase.

Product Innovation: Continued focus on closed-toe silhouettes, which saw a 500 basis point increase in penetration. New product launches and collaborations have driven demand.

Retail Expansion: Opened 13 new stores, bringing the total to 124, with same-store sales growth in high single digits.

3Forward Guidance and Outlook

Revenue Growth Guidance: Raised to 15% in constant currency for fiscal 2026.

Adjusted EBITDA: Expected to be at least EUR 710 million for the fiscal year.

CapEx: Anticipated between EUR 110 million to EUR 130 million, focusing on production capacity and retail investments.

Tax Rate: Expected to be 30% to 31% for the year, higher than previous guidance due to nonrecurring expenses.

4Bad News, Challenges, or Points of Concern

Margin Pressure: Adjusted gross profit margin decreased by 130 basis points year-over-year, impacted by FX and tariffs, with ongoing costs from logistics and production complexity.

Geopolitical Risks: Continued localized impacts from conflicts in the Middle East, particularly affecting tourism-dependent markets like the UAE, though mitigated by strong domestic demand in Saudi Arabia.

Inventory Levels: Inventory-to-sales ratio increased to 37%, attributed to FX and capitalized tariffs, raising concerns about inventory management amid changing market dynamics.

5Notable Q&A Insights

DTC vs. B2B Performance: DTC growth outpaced B2B for the first time in two years, driven by investments in retail and digital channels.

EMEA Growth Drivers: Growth acceleration in EMEA attributed to DTC demand and improved marketing strategies, despite some impact from geopolitical tensions.

Pricing Strategy: The company maintains a disciplined approach to pricing, with no significant markdowns affecting margins, even amidst broader industry promotions.

China Market: Significant growth in China (50% year-over-year) with plans for continued brand awareness and retail expansion.

Future Production Capacity: Current capacity supports a projected 10% unit growth, with ongoing investments in manufacturing to meet demand. Overall, Birkenstock demonstrated strong financial performance and strategic growth initiatives, while navigating challenges related to geopolitical risks and margin pressures. The company remains optimistic about its growth trajectory, particularly in the DTC channel and APAC markets.