Birkenstock (BIRK) Q1 2026 earnings summary

Executive summary

• Q1 revenue grew 11% year-over-year to EUR 402 million (18% in constant currency), surpassing guidance, driven by strong demand across all segments and channels.

• Net profit surged 151% to EUR 51 million, with EPS up 157% to EUR 0.27; adjusted net profit rose 47% and adjusted EPS up 50%.

• Adjusted EBITDA increased 4% to EUR 106 million, with margin contracting by 170 bps to 26.5% due to tariffs and currency headwinds.

• B2B channel outperformed DTC, with B2B up 24% and DTC up 12% in constant currency.

• Added 9 new retail stores, ending the quarter with 106 globally, supporting DTC growth.

Financial highlights

• Gross profit margin was 55.7%, down 460 bps year-over-year; adjusted gross margin was 57.4%, down 290 bps, mainly due to currency translation, U.S. tariffs, and channel mix.

• Adjusted EBITDA margin was 26.5%, down 170 bps year-over-year.

• Adjusted net profit margin improved to 12.2% from 9.2%.

• Inventory-to-sales ratio was 39%, flat year-over-year; DSO increased to 20 from 15 due to higher B2B mix.

• Net leverage increased to 1.7x from 1.5x sequentially, mainly due to seasonal cash decrease.

Outlook and guidance

• FY26 constant currency revenue growth expected at 13%-15%; FX headwinds to reduce reported growth to 10%-12%.

• Adjusted gross margin forecasted at 57%-57.5%, including 100 bps each from FX and tariffs.

• Adjusted EBITDA expected at least EUR 700 million, with margin of 30%-30.5% (32%-32.5% excluding FX/tariffs).

• Adjusted EPS guidance of €1.90-€2.05, including 20-50 cents FX pressure.

• CapEx planned at EUR 110-130 million; net leverage target of 1.3-1.4x by year-end.