Q3 2025 Birkenstock Holding PLC Earnings Call Transcript
Key Points
- Birkenstock Holding PLC (BIRK) reported a 16% revenue growth in constant currency, with double-digit growth in every segment and channel.
- The company achieved its best third-quarter margin ever, with gross margin up 100 basis points to 60.5% and EBITDA margin up 140 basis points to 34.4%.
- BIRK's B2B channel outpaced D2C, with B2B revenue up 18% in constant currency, driven by strong sell-through at retail partners.
- The company successfully implemented price increases with no negative market response, maintaining strong demand and sell-through rates.
- BIRK is expanding its retail presence, with plans to reach around 100 stores by the end of the fiscal year, capturing more in-person shopping demand.
- Currency volatility, particularly the depreciation of the US dollar, negatively impacted reported revenue growth and margins, with a 330 basis points drag on revenue growth.
- The company faced production capacity constraints, limiting its ability to fully meet strong demand, particularly in Europe and APAC.
- BIRK's online business started slower than planned in April and May, although it re-accelerated in June.
- The company anticipates continued currency headwinds in the fourth quarter, with reported revenue growth expected to be about 400 basis points below constant currency growth.
- Tariffs remain a challenge, with the EU tariff now at 15%, impacting gross margin and EBITDA margin, although the company has taken steps to mitigate this.
Good morning. Thank you for standing by. Welcome to Birkenstock's third quarter 2025 earnings conference call. (Operator Instructions)
I would like to remind everyone that this conference call is being recorded. I will now turn over the call to Megan Kulick, Director of Investor Relations.
Hello and thank you everyone for joining us today. On the call are Oliver Reichert, Director of Birkenstock Holding PLC and Chief Executive Officer of the Birkenstock Group, and Ivica Krolo, Chief Financial Officer of the Birkenstock Group.
David Kahan, President of Americas, Nico Bouyakhf, President of EMEA, Klaus Baumann, Chief Sales Officer, and Alexander Hoff, Vice President Global Finance will join us for the Q&A.
Today we are reporting the financial results for our Fiscal third quarter of 2025 ended June 30, 2025. You may find the press release and supplemental presentation connected to today's discussion on our investor relations website at Birkenstock-holding.com.
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