Birkenstock Q1 Sales Jump 25.6% to $477M; Margins Fall 460bps
Birkenstock Holding grew Q1 revenue by 25.6% year-on-year to $477.0 million and posted EPS of $0.32, slightly topping consensus. Gross profit margin fell 460 basis points to 55.7% due to currency headwinds, tariffs and channel mix, as the company forecasts 13–15% full-year revenue growth and plans 40 new retail openings.
1. Q1 Financial Performance
Birkenstock grew Q1 revenue by 25.58% year-over-year to $477.03 million, missing consensus by $1.20 million, while EPS of $0.32 topped estimates by $0.01. Double-digit constant-currency sales growth was driven by strong holiday demand across all segments.
2. Margin Pressures
Gross profit margin declined 460 basis points to 55.7% due to unfavorable currency rates, incremental U.S. tariffs and an unfavorable channel mix that shifted sales toward lower-margin channels.
3. Outlook and Store Expansion
Management forecasts full-year revenue growth of 13–15% and expects gross margins to recover to 57–57.5%, while planning to open 40 new own-retail stores globally to deepen market presence and drive direct sales.