Story Stocks^®

Birkenstock (BIRK) provided upside guidance for Q4, forecasting revenue to at least €520 mln, implying growth of at least 14% (18% constant currency) despite ongoing FX headwinds. The German sandal and clog maker also reaffirmed its FY25 adjusted EBITDA margin range of 31.3–31.8%.

• Q4 revenue guide of €520 mln+ reflects resilient demand and full-price selling strategy, even amid a tough macro retail environment.
• FX headwinds remain a challenge, but constant currency growth of 18% highlights strong underlying demand trends.
• B2B sales rose 15% yr/yr in Q3, and management expects B2B to outpace DTC in Q4, aided by a consumer shift back toward in-store shopping.
• Higher-income customers continue gravitating toward the brand, supporting robust margins and EPS growth despite broader retail weakness.
• BIRK acquired a production facility near Dresden for €18 mln (€240/sqm due to seller bankruptcy), expected to be operational by end of FY27 -- securing future capacity to meet growing demand.

Briefing.com Analyst Insight:

BIRK’s update underscores its positioning as a premium lifestyle brand relatively insulated from consumer spending volatility. The reaffirmed margin outlook, coupled with upside revenue guidance, highlights pricing power and disciplined cost management. The strong B2B momentum -- set to outpace DTC in Q4 -- also speaks to the strategic benefit of shifting channel dynamics. The Dresden factory acquisition at distressed pricing is another example of opportunistic capital allocation that should expand capacity over time. That said, FX remains a headwind and broader retail sentiment fragile, meaning BRIK’s premium valuation demands continued flawless execution. For now, the brand’s resilience and ability to drive double-digit constant-currency growth make it one of the stronger operators in global footwear retail.