Birkenstock (BIRK) Q2 2025 earnings summary

Executive summary

• Revenue grew 19% year-over-year to approximately €574 million in Q2 FY25, with double-digit growth across all regions and channels.

• Net profit rose 47% to €105 million, with EPS up to €0.56 from €0.38.

• Adjusted EBITDA increased 23% to €200 million, with margin expanding to 34.8%.

• Membership base surpassed 10 million, up 25% year-over-year, supporting D2C momentum.

• Raised full-year revenue and adjusted EBITDA guidance, now targeting €660-670 million in adjusted EBITDA and high end of 15-17% revenue growth.

Financial highlights

• Gross profit margin improved to 57.7%, up 140 bps year-over-year, driven by price adjustments and better manufacturing absorption.

• Adjusted net profit was €103 million, up 33% year-over-year; adjusted EPS €0.55, up 34%.

• Operating cash flow was negative €18 million, mainly due to timing of tax payments and working capital outflows.

• Cash and cash equivalents at period end were €235 million; net leverage at 1.8x.

• B2B and DTC channels both grew 19% year-over-year for the quarter; DTC penetration at 24%.

Outlook and guidance

• Now expects to reach high end of 15%-17% constant currency revenue growth guidance.

• Adjusted EBITDA margin guidance raised to 31.3%-31.8%, targeting €660-670 million (+19%-21% year-over-year).

• Confident in meeting/exceeding FY2025 targets despite tariff and FX headwinds; mitigation levers in place.

• Targeting net leverage of approximately 1.5x by fiscal year-end.

• Management expects to finance operations and working capital needs for the next 12 months from cash generated through operations.