Revenue growth has decelerated from 21.7% in 2024Q4 to 9.4% in 2026Q2, while gross margins compressed to 50.2% from historical levels near 60%.
| Sales/Revenue | 2.19B | 2.1B | 1.8B | 1.49B | 1.24B | 962.13M | 728.55M |
| Revenue Growth % | 12.02% | 16.22% | 20.96% | 20.04% | 29.18% | 32.06% | - |
| Cost of Goods Sold | 962.14M | 857.72M | 744.01M | 566.12M | 493.03M | 416.48M | 468.27M |
| COGS % of Revenue | - | 40.89% | 41.23% | 37.95% | 39.67% | 43.29% | 64.27% |
| Gross Profit | 1.23B | 1.24B | 1.06B | 925.79M | 749.8M | 545.65M | 260.28M |
| Gross Margin % | 56.1% | 59.11% | 58.77% | 62.05% | 60.33% | 56.71% | 35.73% |
| Gross Profit Growth % | - | 16.88% | 14.57% | 23.47% | 37.41% | 109.64% | - |
| Operating Expenses | 676.18M | 690.16M | 639.6M | 665.11M | 386.77M | 315.4M | 302.98M |
| OpEx % of Revenue | - | 32.91% | 35.44% | 44.58% | 31.12% | 32.78% | 41.59% |
| Selling, General & Admin | 632.14M | 607.22M | 540.8M | 558.67M | 366.73M | 334.03M | 287.19M |
| SG&A % of Revenue | - | 28.95% | 29.97% | 37.45% | 29.51% | 34.72% | 39.42% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | -2M | 82.94M | 98.8M | 106.44M | 20.05M | -18.63M | 15.79M |
| Operating Income | 553.46M | 549.54M | 421.08M | 260.69M | 363.03M | 230.25M | -42.71M |
| Operating Margin % | 25.25% | 26.2% | 23.33% | 17.47% | 29.21% | 23.93% | -5.86% |
| Operating Income Growth % | - | 30.51% | 61.53% | -28.19% | 57.67% | 639.14% | - |
| EBITDA | 675.99M | 663.08M | 522.37M | 344.1M | 444.29M | 230.25M | 3.35M |
| EBITDA Margin % | 30.84% | 31.61% | 28.95% | 23.06% | 35.75% | 23.93% | 0.46% |
| EBITDA Growth % | 12.71% | 26.94% | 51.81% | -22.55% | 92.96% | 6781.26% | - |
| D&A (Non-Cash Add-back) | 122.53M | 113.54M | 101.29M | 83.41M | 81.26M | 0 | 46.05M |
| EBIT | 549.47M | 545.55M | 402.37M | 276.94M | 333.16M | 230.25M | -42.71M |
| Net Interest Income | -68.69M | -68.56M | -100.56M | -120.89M | -82.55M | -79.64M | -87.17M |
| Interest Income | 0 | 7.01M | 8.04M | 2.4M | 90K | 0 | 0 |
| Interest Expense | 68.69M | 75.57M | 108.59M | 123.28M | 82.64M | 79.64M | 87.17M |
| Other Income/Expense | -79.61M | -79.56M | -127.3M | -107.04M | -112.5M | -79.64M | -87.17M |
| Pretax Income | 473.85M | 469.98M | 293.78M | 153.65M | 250.52M | 150.61M | -129.88M |
| Pretax Margin % | 21.62% | 22.41% | 16.28% | 10.3% | 20.16% | 15.65% | -17.83% |
| Income Tax | 116.96M | 121.65M | 102.18M | 78.63M | 63.41M | 34.17M | -23.68M |
| Effective Tax Rate % | 24.68% | 25.88% | 34.78% | 51.17% | 25.31% | 22.69% | 18.23% |
| Net Income | 356.88M | 348.33M | 191.6M | 75.02M | 187.11M | 116.44M | -106.19M |
| Net Margin % | 16.28% | 16.61% | 10.62% | 5.03% | 15.06% | 12.1% | -14.58% |
| Net Income Growth % | 41.43% | 81.8% | 155.39% | -59.91% | 60.7% | 209.64% | - |
| Net Income (Continuing) | 356.88M | 348.33M | 191.6M | 75.02M | 187.11M | 116.44M | -106.19M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.94 | 1.87 | 1.02 | 0.41 | 1.13 | 0.46 | -0.57 |
| EPS Growth % | 42.22% | 83.33% | 148.78% | -63.72% | 145.65% | 180.7% | - |
| EPS (Basic) | - | 1.87 | 1.02 | 0.41 | 1.13 | 0.46 | -0.57 |
| Diluted Shares Outstanding | 183.91M | 186.51M | 187.6M | 182.72M | 182.72M | 182.72M | 187.83M |
| Basic Shares Outstanding | 183.91M | 186.51M | 187.6M | 182.72M | 182.72M | 182.72M | 187.83M |
| Dividend Payout Ratio | - | - | - | - | - | 134.06% | - |
Fixed cost absorption volatility
As reported in recent financial filings, Birkenstock's year-over-year revenue growth has decelerated from a peak of 21.7% in 2024Q4 to 9.4% in 2026Q2, suggesting that the initial post-IPO momentum may be normalizing as the company faces tougher year-over-year comparisons across its primary geographic markets.
The consistent decline in top-line expansion rates indicates that the brand's rapid penetration phase may be transitioning into a more mature, slower-growth cycle. Investors should monitor whether this deceleration reflects a deliberate pullback from wholesale channels or a genuine softening in consumer demand for premium footwear.
Based on the latest quarterly data, Birkenstock's gross margin contracted significantly to 50.2% in 2026Q2, a notable departure from the 60% levels maintained throughout 2025, which may indicate rising production costs or a shift in the product mix toward lower-margin silhouettes during the period.
This margin compression suggests that the company's vertical integration strategy is currently facing headwinds, potentially from the Pasewalk facility's ramp-up or inflationary pressures on raw materials. The inability to sustain historical margin levels implies that pricing power may be more sensitive to macroeconomic conditions than previously anticipated.
According to the income statement, operating income fell to $164.9M in 2026Q2 despite higher revenue, resulting in an operating margin of 26.2% that fails to scale proportionally with gross profit, highlighting a potential inefficiency in managing fixed overheads during periods of slowing top-line growth.
The lack of operating leverage suggests that the company's fixed-cost base, largely tied to its German manufacturing footprint, is becoming a drag on profitability. If revenue growth continues to decelerate, the current cost structure may lead to further margin erosion, necessitating a more disciplined approach to SG&A management.
While the market often prices Birkenstock as a luxury staple, the recent volatility in net income, which dropped to $83.2M in 2026Q2 from $129.2M in 2025Q3, suggests that the business remains highly susceptible to cyclical downturns and the inherent risks of a concentrated manufacturing model.
Short-sellers may focus on the discrepancy between the company's premium valuation and the reality of its recent margin compression and slowing growth. The reliance on a single, high-cost manufacturing region creates a binary risk profile that could be severely tested if European energy costs or labor dynamics shift unfavorably.
Quick answers to the most common questions about buying BIRK stock.
For fiscal year 2025, Birkenstock Holding plc (BIRK) reported total revenue of $2.10B. This represents a 187.9% increase compared to $728.5M in 2020.
Birkenstock Holding plc (BIRK) is profitable, generating $348.3M in net income for the fiscal year ending 2025 with a net profit margin of 16.6%.
Birkenstock Holding plc (BIRK) reported an operating income of $549.5M, resulting in an operating profit margin of 26.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Birkenstock Holding plc (BIRK) generated $1.24B in gross profit for the year, representing a gross profit margin of 59.1%. This demonstrates the company's core pricing power and production efficiency.