Fashion
Germany’s Birkenstock Q1 revenue rises 11.1% on strong holiday demand
Regional performance remained broad-based, with double-digit constant currency growth across all segments. In the Americas, revenue increased 5 per cent on a reported basis and 14 per cent in constant currency, led by business to business (B2B) expansion and improved sell-through at key wholesale partners, including youth-focused and sports specialty retailers. The company operated 15 own retail stores in the region after opening one new store during the quarter.
Birkenstock has reported revenue of €402 million (~$478.4 million) in Q1 FY26, up 11.1 per cent YoY and 17.8 per cent in constant currency, exceeding guidance.
Growth was broad-based across regions and channels, led by strong holiday demand.
Net profit surged 151 per cent to €51 million (~$60.5 million).
The company reaffirmed its three-year growth and profitability targets.
Europe, the Middle East and Africa (EMEA) posted revenue growth of 16 per cent on a reported basis and 17 per cent in constant currency, again led by the B2B channel. Three new own retail stores were added, taking the regional total to 45 stores by quarter-end, Birkenstock said in a press release.
Asia-Pacific (APAC) delivered the strongest performance, with revenue rising 28 per cent on a reported basis and 37 per cent in constant currency. Direct-to-consumer (DTC) growth outpaced B2B by more than two times in the region, supported by strength in both online and physical retail. Five new stores were opened, bringing the APAC store count to 46.
By channel, B2B revenue grew 18 per cent on a reported basis and 24 per cent in constant currency, primarily driven by growth within existing doors through expanded assortments and strong full-price sell-through. DTC revenue increased 4 per cent on a reported basis and 12 per cent in constant currency. During the quarter, Birkenstock added nine new own retail stores globally, bringing the total to 106 as of December 31, 2025.
Profitability metrics reflected both operational strength and external cost pressures. Gross profit margin declined 460 basis points to 55.7 per cent from 60.3 per cent in the prior-year period. The decrease was mainly attributable to unfavourable currency translation (220 basis points), incremental US tariffs (130 basis points), channel mix and a 170 basis points (bps) impact from the mark-up to cost of sales linked to the acquisition of Birkenstock Australia Pty Ltd, completed on October 23, 2025. These pressures were partly offset by sales price adjustments net of inflation and improved capacity absorption.
Adjusted gross profit margin stood at 57.4 per cent, down 290 basis points YoY, reflecting similar currency and tariff headwinds, partially mitigated by pricing actions and operational efficiencies.
Net profit surged 151 per cent YoY to €51 million (~$60.5 million), while earnings per share (EPS) increased 157 per cent to €0.27. Adjusted net profit rose 47 per cent and adjusted EPS climbed 50 per cent YoY.
Adjusted EBITDA grew 4 per cent to €106 million, with an adjusted EBITDA margin of 26.5 per cent, down 170 basis points from 28.2 per cent in the prior-year quarter. The margin contraction was largely due to currency effects (230 basis points) and incremental US tariffs (130 basis points), partly offset by pricing measures and better production absorption.
To support sustained demand, Birkenstock continued to invest in production capacity, spending approximately €38 million in capital expenditure during the quarter. This included around €18 million for the acquisition of a new site in Wittichenau.
The company ended the quarter with cash and cash equivalents of €229 million. Net leverage stood at 1.7x as of December 31, 2025, compared with 1.5x on September 30, 2025, reflecting typical seasonal cash patterns.
Oliver Reichert, CEO and member of the board of directors of the company, said: “Our results for the first quarter of fiscal 2026 show the continued strong demand for our brand throughout the important holiday season. As we discussed during our Capital Markets Day in New York on January 28th, we believe we are a one-of-a-kind purpose-driven brand with a huge runway for growth ahead. Our unique business model is designed for resilience. We presented our three-year plan which calls for 13-15 per cent revenue growth in constant currency and 30 per cent EBITDA margin. Our vertically integrated supply chain means we are capacity constrained by design. We will steer our business by geography, channel and product to maximise profit per pair and maintain strong brand equity.”
Fibre2Fashion News Desk (SG)
The annual rate matched the 1.2 per cent rise recorded in December 2025, though it was slightly below the 1.5 per cent increase seen in November.
Germany’s wholesale selling prices rose 1.2 per cent year on year in January 2026, matching December’s rate but easing from 1.5 per cent in November, according to Destatis.
On a month-on-month basis, prices increased 0.9 per cent from December, indicating firmer momentum at the start of the year and a continuation of moderate wholesale inflation trends.
On a month-on-month basis, wholesale prices climbed 0.9 per cent in January compared with December 2025, signalling renewed upward momentum at the start of the year, Destatis said in a press release.
Fibre2Fashion News Desk (SG)
“We find that nearly 90 per cent of the tariffs’ economic burden fell on US firms and consumers,” said the paper authored by staff economists at the New York Fed and another economist at Columbia University.
Nearly nine-tenths of the economic burden of the US tariffs on imports last year fell mostly on US importers and consumers rather than overseas exporters, a study by the Federal Reserve Bank of New York found.
Close to 94 per cent of new tariffs in January-August 2025 was absorbed by US importers and consumers.
This share stood at 92 per cent from September to October and 86 per cent in November 2025.
Close to 94 per cent of new tariffs in January-August 2025 was absorbed by US importers and consumers, the study noted. This share stood at 92 per cent from September to October and 86 per cent in November last year.
“These findings are consistent with two other studies that report high pass-through of tariffs to US import prices,” said the paper.
The average US tariff rate on imported products rose from 2.6 per cent at the beginning of 2025 to 13 per cent by the end of the year, the study noted.
US import prices for goods subject to the average tariff increased by 11 per cent more than those for goods not subject to tariffs.
The Department of Homeland Security collected $287 billion in customs duties, taxes and fees in 2025—up by 192 per cent year on year, according to the Department of Treasury.
The reaction from exporters last year was essentially the same in 2018, when Trump imposed certain tariffs during his first term in office—the cost of goods for consumers rose, with little other economic impact recorded, the New York Fed said at the time.
Fibre2Fashion News Desk (DS)
The Netherlands ranked first among the FDI sources with $2.86 billion, followed by Luxembourg with $1.16 billion and Kazakhstan with nearly $1.14 billion.
FDI into Turkiye rose by 12.2 per cent YoY last year to $13.1 billion despite a relatively stagnant global investment climate.
The Netherlands topped among the FDI sources with $2.86 billion, followed by Luxembourg with $1.16 billion and Kazakhstan with nearly $1.14 billion.
Wholesale and retail trade attracted the largest 32-per cent share.
Manufacturing followed closely with a 31 per cent share.
Other major investors included Germany, the United States, France, the United Arab Emirates (UAE), Switzerland, the United Kingdom and Ireland.
FDI investment was concentrated in production, trade and technology-oriented activities, according to domestic media reports.
Wholesale and retail trade attracted the largest share of last year’s FDI, driven mainly by investments in e-commerce platforms. The sector accounted for 32 per cent of total inflows, or $3.05 billion.
Manufacturing followed closely with a 31 per cent share, totalling just over $3 billion.
Fibre2Fashion (DS)
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