Revenue growth has decelerated to 15.2% in 2026Q3 from a peak of 21.7%, while operating margin has compressed to 28.8% from 31.2% a year ago, indicating SG&A spending is outpacing top-line gains.
Birkenstock Holding plc (BIRK) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 |
|---|
| Sales/Revenue | 2.29B | 2.1B | 1.8B | 1.49B | 1.24B | 962.13M | 728.55M |
| Revenue Growth % | 12.89% | 16.22% | 20.96% | 20.04% | 29.18% | 32.06% | - |
| Cost of Goods Sold | 1.03B | 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 | 1.25B | 1.24B | 1.06B | 925.79M | 749.8M | 545.65M | 260.28M |
| Gross Margin % | 54.78% | 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 | 687.55M | 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 | 654.94M | 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 | 565.86M | 549.54M | 421.08M | 260.69M | 363.03M | 230.25M | -42.71M |
| Operating Margin % | 24.73% | 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 | 694.72M | 663.08M | 522.37M | 344.1M | 444.29M | 286.74M | 3.35M |
| EBITDA Margin % | 30.36% | 31.61% | 28.95% | 23.06% | 35.75% | 29.8% | 0.46% |
| EBITDA Growth % | 7.59% | 26.94% | 51.81% | -22.55% | 54.94% | 8469.71% | - |
| D&A (Non-Cash Add-back) | 128.86M | 113.54M | 101.29M | 83.41M | 81.26M | 56.5M | 46.05M |
| EBIT | 554.94M | 545.55M | 402.37M | 276.94M | 333.16M | 230.25M | -42.71M |
| Net Interest Income | -94.11M | -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 | 94.11M | 75.57M | 108.59M | 123.28M | 82.64M | 79.64M | 87.17M |
| Other Income/Expense | -109M | -79.56M | -127.3M | -107.04M | -112.5M | -79.64M | -87.17M |
| Pretax Income | 456.86M | 469.98M | 293.78M | 153.65M | 250.52M | 150.61M | -129.88M |
| Pretax Margin % | 19.97% | 22.41% | 16.28% | 10.3% | 20.16% | 15.65% | -17.83% |
| Income Tax | 117.81M | 121.65M | 102.18M | 78.63M | 63.41M | 34.17M | -23.68M |
| Effective Tax Rate % | 25.79% | 25.88% | 34.78% | 51.17% | 25.31% | 22.69% | 18.23% |
| Net Income | 339.05M | 348.33M | 191.6M | 75.02M | 187.11M | 116.44M | -106.19M |
| Net Margin % | 14.82% | 16.61% | 10.62% | 5.03% | 15.06% | 12.1% | -14.58% |
| Net Income Growth % | 10.47% | 81.8% | 155.39% | -59.91% | 60.7% | 209.64% | - |
| Net Income (Continuing) | 339.05M | 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) | 1.87 | 1.87 | 1.02 | 0.41 | 1.13 | 0.46 | -0.57 |
| EPS Growth % | 12.2% | 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 | 181.48M | 186.51M | 187.6M | 182.72M | 182.72M | 182.72M | 187.83M |
| Basic Shares Outstanding | 181.48M | 186.51M | 187.6M | 182.72M | 182.72M | 182.72M | 187.83M |
| Dividend Payout Ratio | - | - | - | - | - | 134.06% | - |
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.
Key Metrics
Top Statement Risk
Margin compression from fixed-cost ramp
Growth Deceleration Amidst Seasonal Volatility
Revenue growth has decelerated from a peak of 21.7% in 2024Q2 to 15.2% in 2026Q3, suggesting the initial post-IPO momentum is normalizing as the company laps stronger prior-year comparisons.
The sequential decline in year-over-year growth rates across the last several quarters indicates a maturation of the current growth cycle. While the 15.2% growth in the most recent quarter remains robust, it is a clear step-down from the 19-21% range seen in early 2024, implying that the tailwinds from the 'ugly-cool' trend and DTC expansion may be moderating. Investors should monitor whether this deceleration stabilizes at a sustainable mid-teens pace or continues to trend lower toward the industry average.
Gross Margin Volatility Signals Cost Pressures
Gross margin has exhibited significant quarterly volatility, ranging from 50.2% in 2026Q2 to 60.5% in 2025Q3, which appears to reflect the impact of raw material costs and production ramp-up at the new Pasewalk facility.
The sharp 500+ basis point swing in gross margin between consecutive quarters (e.g., 2025Q3 to 2025Q4) is unusual for a premium brand and suggests the company is experiencing meaningful cost absorption challenges or product mix shifts. The recent dip to 50.2% in 2026Q2, followed by a recovery to 55.8%, indicates that while pricing power remains, the fixed-cost base from German manufacturing is creating margin instability. This pattern warrants close monitoring, as sustained margin pressure could undermine the premium valuation thesis.
Operating Leverage Eroded by SG&A Surge
Operating income growth has consistently lagged revenue growth in recent quarters, with operating margin compressing from 31.2% in 2025Q3 to 28.8% in 2026Q3, suggesting SG&A spending is outpacing top-line gains.
The data reveals a concerning trend where SG&A expenses have grown faster than revenue, particularly in 2026Q2 where SG&A increased 28% year-over-year while revenue grew only 9.4%. This indicates that the company is investing heavily in brand building, DTC infrastructure, or corporate overhead that is not yet generating proportional returns. The resulting operating margin compression suggests that the business model may not be as scalable as initially perceived, especially if the DTC channel requires sustained high customer acquisition costs.
Net Margin Compression Raises Conversion Concerns
The gap between operating margin (28.8%) and net margin (15.2%) in 2026Q3 implies a significant non-operating drag, likely from interest expenses or tax provisions that are compressing bottom-line conversion.
The 1,360 basis point spread between operating and net margins in the most recent quarter is notably wider than the 1,090 basis point gap seen in 2025Q3, suggesting that non-operating costs are becoming a larger headwind. Given the known LBO capital structure, this likely reflects substantial interest expenses that are not captured in operating income. This dynamic means that even as the company demonstrates solid operational execution, the financial leverage is creating a meaningful wedge between operational performance and shareholder returns.
SG&A Discipline Deteriorating Relative to Peers
SG&A as a percentage of revenue has increased from 25.0% in 2025Q3 to 29.9% in 2026Q2, indicating a loss of expense discipline that contrasts sharply with the operational efficiency of peers like Deckers Outdoor.
The rising SG&A ratio suggests that management is prioritizing growth investments over near-term profitability, which may be appropriate for a scaling brand but creates risk if growth decelerates further. Compared to Deckers Outdoor's 23.1% operating margin, Birkenstock's 28.8% operating margin appears strong, but the trajectory is concerning as SG&A growth is outpacing revenue growth. This trend implies that the company may need to implement cost controls or achieve greater scale to maintain its current profitability profile.
Sustainability of Premium Pricing Under Scrutiny
The combination of decelerating revenue growth, volatile gross margins, and rising SG&A suggests that Birkenstock's premium pricing power may be approaching its limits as the 'ugly-cool' trend matures.
Short-sellers would focus on the fact that gross margin has declined from 60.5% to 55.8% over the past year while revenue growth has slowed, indicating that the company may be relying on promotional activity or less favorable product mix to maintain volume. The significant capital expenditure on the Pasewalk facility creates fixed-cost exposure that could amplify margin pressure if consumer demand weakens. Furthermore, the widening gap between operating and net margins suggests that the financial structure is becoming increasingly burdensome, potentially limiting the company's ability to invest in future growth without diluting equity holders.