Birkenstock Holding plc reported preliminary revenue of €402 million for the first quarter of 2025, a 17.8 % increase in constant currency and an 11.1 % rise on a reported‑basis basis. The figure sits just below the lower end of the consensus range of €402.5‑€403.3 million, meaning the miss was narrow and many analysts described the result as roughly in line with expectations.
The slight shortfall is largely attributable to a weaker U.S. dollar, which reduced the euro value of sales in the Americas. When adjusted for currency, revenue growth is robust, underscoring that demand for Birkenstock’s European‑manufactured footwear remains strong despite macro‑economic headwinds.
Tariff‑related cost pressures continue to weigh on margins. Import duties on European‑produced goods have increased operating costs, and the company noted that these headwinds are expected to persist into the next quarter. The company’s gross profit margin for the quarter was 61 %, down 70 basis points from the prior year, reflecting both currency translation effects and the impact of higher tariff costs.
Comparing to the prior year, first‑quarter revenue grew from €303 million in 2024, a 26 % year‑over‑year increase, and from roughly €270 million in 2023. The 11.1 % reported growth represents a deceleration from the 26 % growth seen in Q1 2024, indicating a moderating trajectory as the company navigates higher input costs and a more volatile currency environment.
Management reiterated its confidence in the brand’s resilience, noting that strong demand in core segments—particularly closed‑toe styles—offsets weaker sandal sales. The company has maintained its full‑year revenue guidance, but it cautioned that margin compression may continue as tariff costs and currency volatility remain in play. Investors are watching the upcoming full‑quarter earnings for more detailed guidance on how the company plans to manage these headwinds.
Investor reaction to the preliminary announcement was muted, with analysts focusing on the narrow miss against consensus and the ongoing impact of currency and tariff headwinds. The market’s cautious stance reflects the company’s need to demonstrate continued demand strength and margin resilience in the face of these external pressures.
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