Birkenstock Q2 Profit Drops 22% to €82M as Margins Contract 380 bps
Birkenstock’s fiscal Q2 net profit slid 22% to €82M (€0.45 per share) while revenue rose 8% to €618M (14% constant currency) but missed expectations by €2.3M. Gross profit margin contracted 380 basis points to 53.9% due to currency headwinds, U.S. tariffs and a €6M Middle East conflict impact.
1. Q2 Earnings and Revenue
Birkenstock reported fiscal second-quarter net profit of €82M (€0.45 per share), down 22% from €105M (€0.56 per share) a year earlier. Group revenue rose 8% to €618M (14% constant currency), slightly below the €620.3M consensus.
2. Margin Contractions
Gross profit margin narrowed by 380 basis points to 53.9%, with 230 bps from currency translation, 90 bps from U.S. tariffs and 30 bps from channel mix. Folding in Birkenstock Australia added another 70 bps of margin pressure.
3. Regional Impacts
EMEA revenue was reduced by about €6M due to the Middle East conflict, creating a 300 bps headwind to regional growth from delivery disruptions and weakened consumer sentiment. Constant currency revenue grew 14% in the Americas and 30% in Asia-Pacific.
4. Full-Year Outlook Unchanged
Management reiterated full-year guidance for 13%–15% constant currency revenue growth, a 57.0%–57.5% gross profit margin and 30.0%–30.5% EBITDA margin. Adjusted EPS is forecast at €1.90–€2.05, including tariff and FX impacts.