Birkenstock CEO Is Confident Tariffs Is Not A Disadvantage For The Brand

Birkenstock Holding plc BIRK shares are trading higher on Thursday after the company reported the second-quarter FY25 results.

Revenue grew 19% year over year (Y/Y) on a reported and 18% Y/Y on a constant currency basis to 574 million euros. Revenue growth was driven by double-digit unit growth and mid-single-digit growth in Average Selling Price (ASP).

Adjusted EPS stood at 0.55 euro, up 34% Y/Y, in the quarter. In U.S. dollars, revenue of $603.62 million beat the street view of $567.17 million, and adjusted EPS of 58 cents exceeded the consensus of 54 cents.

Also Read: Birkenstock Has A Tariff Advantage Going In Q2: Analyst

The company witnessed double-digit revenue growth across all segments, including 20% Y/Y in the Americas, 12% in EMEA, and 30% in APAC on a constant currency basis.

DTC and B2B revenue grew 17% Y/Y and 18% Y/Y, respectively, on a constant currency basis. B2B revenue growth was led by strong Spring/Summer sell-in (sandals/closed-toe), and DTC revenue growth was aided by digital and strong retail.

The gross profit margin reached 57.7%, an increase of 140 basis points from the 56.3% reported in the second quarter of 2024.

This improvement was driven by adjustments to sales prices, better utilization of the new manufacturing capacity that came online in September 2023, and a positive impact from currency translation.

Adjusted EBITDA rose 23% Y/Y to 200 million euros, with an adjusted EBITDA margin of 34.8%, which was up 110 basis points Y/Y.

Operating cash outflow rose to 18 million euros in the quarter. As of March 31, 2025, Birkenstock had cash and cash equivalents of 235 million euros.

FY25 Outlook: The company now expects FY25 revenue growth to be at the upper end of its prior guidance of 15% to 17% in constant currency and raised adjusted EBITDA margin by 50 basis points to 31.3% to 31.8%.

Oliver Reichert, CEO and Member of the Board of Directors said, ”We expect that the tariff situation may create a unique shift in consumer behavior in the footwear category with a split between the few brands, like BIRKENSTOCK, who manage strong brand equity through relative scarcity and those who distribute their products with less discipline and pricing integrity. We will navigate these uncertain times from a position of strength.”

Investors can gain exposure to the stock via Renaissance IPO ETF IPO.

Price Action: BIRK shares are up 6.04% to $57.78 at the last check on Thursday.

Read Next:  

• Consumers Go Discount As Tariff Pressures Mount, Warns Analyst

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