Birkenstock Holding Plc: Q2 FY2026 Financial Summary
Business Context and Reporting Period
This Form 6-K filing covers the unaudited interim condensed consolidated financial statements for Birkenstock Holding Plc for the three and six months ended March 31, 2026. The company operates in three primary segments: Americas, EMEA, and APAC, selling footbed-based footwear and accessories through Business-to-Business (B2B) and Direct-to-Consumer (DTC) channels. The fiscal year ends on September 30.
Key Financial Metrics
| Metric (€ millions) | 3 Months Ended Mar 31, 2026 | 6 Months Ended Mar 31, 2026 |
|---|---|---|
| Revenue | 618.3 | 1,020.2 |
| Gross Profit | 333.6 | 557.5 |
| Gross Margin | 53.9% | 54.6% |
| Net Profit | 81.9 | 132.4 |
| Adjusted EBITDA | 198.3 | 304.7 |
| Adjusted EBITDA Margin | 32.1% | 29.9% |
| Cash and Equivalents | 201.5 | 201.5 |
| Net Debt | 1,159.5 | 1,159.5 |
| Net Leverage | 1.7x | 1.7x |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 8% year-over-year (YoY) for the quarter and 9% for the six-month period. On a constant currency basis, growth was stronger at 14% (quarter) and 16% (six months).
- Profitability Decline: Net profit decreased 22% YoY for the quarter to €81.9 million, driven by unfavorable currency translation, incremental U.S. tariffs, and a non-cash negative revaluation of the embedded derivative in Senior Notes. For the six months, net profit increased 6% to €132.4 million.
- Margin Compression: Gross profit margin contracted by 380 basis points (bps) in the quarter and 410 bps for the six months. Adjusted EBITDA margin declined 270 bps (quarter) and 240 bps (six months).
- Segment Performance:
- Americas: Revenue up 4% (reported); Adjusted EBITDA down 11% due to tariffs and FX.
- EMEA: Revenue up 10%; Adjusted EBITDA up 14% despite headwinds from the Middle East conflict.
- APAC: Revenue up 22%; Adjusted EBITDA flat (1% growth) due to FX and geographic mix changes.
- Acquisition Impact: The acquisition of Birkenstock Australia (closed Oct 2025) contributed €28.6 million in sales since acquisition. A €12.3 million "gain on bargain purchase" was recognized in the six-month period.
Guidance, Outlook, and Risks
- Tariff and FX Outlook: Management expects incremental U.S. tariffs to impact gross profit, adjusted EBITDA, and net profit margins by approximately 100 bps for fiscal 2026. Adverse foreign currency fluctuations are also expected to impact margins by approximately 100 bps for the quarter ending June 30, 2026.
- Geopolitical Risks: Ongoing military conflict in the Middle East is negatively affecting EMEA revenue and increasing costs. Management estimates a €6 million revenue reduction in the quarter due to this conflict.
- Legal Proceedings: The company is defending an appeal by a former French distributor. The plaintiff's claims in the appeal total approximately €41.6 million. A decision is not expected before the end of the first half of calendar year 2026.
- Liquidity: Net leverage increased to 1.7x from 1.5x, driven by a seasonal decrease in cash. The company maintains €210.0 million in undrawn revolving credit facilities.
Investor Verification Checklist
- Tariff Exposure: Verify the specific impact of the 15% U.S. tariff on the Americas segment, which accounts for 52% of revenue.
- FX Sensitivity: Assess the volatility of the USD/EUR exchange rate and its impact on reported margins versus constant currency performance.
- Legal Contingency: Monitor the status of the French distributor appeal (€41.6 million claim) and the adequacy of the recognized provision.
- Acquisition Integration: Review the performance of the newly acquired Birkenstock Australia entity and the realization of the €12.3 million bargain purchase gain.
- Debt Structure: Confirm the terms and maturity of the Senior Notes and the embedded derivative valuation risks.