Birkenstock profit slides as tariffs and FX buffer strong sales growth

Birkenstock Holding (NYSE:BIRK) revealed a surge in quarterly sales that matched its aggressive growth ambitions, though bottom-line results were pinched by escalating trade costs and unfavorable currency movements.

The company posted second-quarter fiscal 2026 revenue of EUR 618 million, representing a 14% increase on a constant-currency basis.

This performance underscores the enduring appeal of the brand’s cork-soled footwear even as broader consumer discretionary spending faces global pressure.

The sales momentum was broad-based, with the company achieving double-digit constant-currency expansion across all geographic regions and sales channels.

This suggests that Birkenstock’s strategy of controlling its distribution through direct-to-consumer (DTC) shifts and selective wholesale partnerships continues to yield results.

However, when measured at reported exchange rates, revenue growth moderated to 8%, reflecting the impact of a stronger euro against the company’s international earnings.

Despite the top-line strength, net profit for the quarter fell 22% to EUR 82 million.

Management attributed the margin compression to a combination of external headwinds and internal shifts.

Specifically, the company cited U.S. tariffs and foreign exchange volatility as primary drags on profitability, alongside a change in the product and channel mix.

Nevertheless, the firm’s operational efficiency remained high, generating adjusted EBITDA of EUR 198 million, which represents a healthy 32.1% margin.

Looking toward the remainder of the fiscal year, Birkenstock management remains confident in its ability to navigate the current macroeconomic environment.

The company reaffirmed its full-year 2026 targets, which include constant-currency revenue growth in the range of 13% to 15%.

On the profitability front, the firm still expects to achieve an adjusted gross margin between 57% and 57.5%, while aiming for an adjusted EBITDA margin of 30% to 30.5%.