Birkenstock (BIRK) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 12% year-over-year to €635 million, with 16% constant currency growth and double-digit increases across all segments and channels.

• Adjusted EBITDA rose 17% to €218 million, with margin expanding 140 bps to 34.4%, the highest Q3 margin to date.

• Net profit surged 73% to €129 million; adjusted net profit up 26% to €116 million, and adjusted EPS increased 27% to €0.62.

• Strong demand across all product categories and regions, with closed-toe shoes outpacing sandals and robust B2B performance.

• 13 new stores opened in Q3, bringing the total to 90 globally.

Financial highlights

• Gross profit margin improved by 100 bps to 60.5%; adjusted EBITDA margin up 140 bps to 34.4%.

• B2B revenue up 15% to €390 million, DTC up 9% to €244 million; DTC penetration at 38%.

• Inventory-to-sales ratio improved to 33% from 36% year-over-year.

• Operating cash flow was €261 million, with cash and equivalents at €262 million after a €176 million share buyback.

• Net leverage at 1.7x post-buyback, would have been 1.4x without buyback.

Outlook and guidance

• Expect to reach the high end of 15%-17% constant currency revenue growth guidance for FY25.

• Adjusted EBITDA margin guidance maintained at 31.3%-31.8% for the full year, despite FX and tariff headwinds.

• Management confident in mitigating tariff and FX impacts through pricing, cost discipline, and inventory management.

• D2C expected to accelerate in Q4, but B2B will continue to outpace D2C for the year.

• Company is assessing the impact of new U.S. and German tax law changes on fiscal 2025.