Birkenstock Q1 Sales Up 11.1% to $467.9M; Currency, Tariffs Weigh on Margins
Birkenstock reported Q1 fiscal 2026 sales of $467.9 million, up 11.1% year-over-year but missing the $468.5 million consensus. Adjusted EBITDA rose 4% to €106 million while margins narrowed 170 basis points due to 230 bps of adverse currency translation and 130 bps of U.S. tariffs.
1. Q1 Fiscal 2026 Performance
Birkenstock posted Q1 sales of $467.9 million, up 11.1% year-over-year but short of the $468.5 million consensus, while adjusted EPS of $0.31 exceeded the $0.30 forecast. Revenue climbed 5% in the Americas (14% constant currency), 16% in EMEA (17% CC) and 28% in APAC (37% CC).
2. Margin Pressures
Adjusted EBITDA increased 4% to €106 million, yet the EBITDA margin narrowed by 170 basis points to 26.5%. This compression stemmed from 230 basis points of unfavorable currency translation and 130 basis points of incremental U.S. tariffs, partially offset by price hikes net of inflation and stronger capacity absorption.
3. Outlook, Capex and Liquidity
The company invested €38 million in capital expenditures, primarily for a new Wittichenau site, and ended the quarter with €229 million in cash and cash equivalents, with net leverage at 1.7x. Fiscal 2026 sales guidance was raised to $2.759–$2.808 billion, up from $2.689–$2.747 billion.