Birkenstock Capital Markets Day: Q1 FY26 Growth Holds as FX, Tariffs Bite; 13%-15% Target Reaffirmed

Birkenstock (NYSE:BIRK) executives outlined the company’s growth strategy and discussed preliminary fiscal first-quarter 2026 results during an investor event, emphasizing what leadership described as durable demand, a “relative scarcity” distribution approach, and supply chain investments intended to support unit growth of about 10% annually.

CEO highlights “footbed” mission and post-IPO performance

CEO Oliver Reichert opened by framing Birkenstock as “the inventor of the footbed,” rather than a traditional footwear brand, and said the company’s mission—articulated by Karl Birkenstock when Reichert joined in 2009—was to “give every human being access to the footbed.” Reichert said the company has delivered 72 million pairs since the IPO and roughly 360 million pairs during his tenure.

Reichert reviewed performance since becoming a public company, citing revenue growth of 41% and EBITDA growth of 38% over the first two years post-IPO, along with “deleverage of 55%.” He also referenced EUR 275 million invested in production and the company, and share buybacks totaling $200 million.

He reiterated management’s view that the brand’s opportunity is not limited to sandals or a fashion cycle, pointing to what he described as “white space” in APAC, the company’s own retail/DTC footprint, and closed-toe shoes. Reichert said APAC has doubled, the retail fleet has doubled since the IPO, and the closed-toe business has reached 38% of the mix, which he said has helped balance seasonal revenue.

Preliminary Q1 fiscal 2026 results: growth continues amid FX and tariffs

CFO Ivica Krolo presented preliminary Q1 fiscal 2026 results, reiterating a previously disclosed revenue figure of EUR 402 million. Krolo said this represented 18% constant-currency growth and 11% reported growth, with momentum continuing from back-to-school and the holiday season.

He said foreign exchange created a 670 basis point headwind to reported revenue growth, primarily due to the weaker U.S. dollar (with an average around 1.16 versus 1.07 a year earlier), as well as depreciation in certain APAC currencies pegged to the U.S. dollar. Krolo also said additional U.S. tariffs pressured margins.

• Adjusted gross margin: 57.4%, down 290 basis points year over year; Krolo said FX and tariff pressures accounted for 350 basis points, and excluding those effects gross margin would have been up 60 basis points.
• Adjusted EBITDA margin: 26.5%, down 170 basis points; excluding FX and tariffs, he said EBITDA margin would have been up 190 basis points.
• Adjusted EPS: $0.27, up 50% year over year, driven by a lower tax rate, improved financial results (including lower interest expense and valuation effects from an embedded derivative), and fewer shares outstanding following buybacks.

By segment, Krolo said constant-currency growth was positive across regions, including 14% in the Americas, 17% in EMEA, and 37% in APAC. By channel, B2B grew 24% in constant currency while DTC grew 12%.

Addressing channel mix, Krolo described B2B as “not a sickness,” saying younger consumers are intentionally purchasing in multi-brand, in-store environments. He cited approximately 19,000 global customer touchpoints versus about 100 company-operated stores and said B2B is an efficient customer acquisition path, with retail partners marketing on Birkenstock’s behalf.

Three-year outlook: 13%-15% revenue growth target, 30%+ EBITDA commitment

Management reiterated fiscal 2026 guidance and outlined a three-year “growth algorithm” through fiscal 2028. Krolo said Birkenstock expects 13%-15% constant-currency revenue growth, “steady margins,” and EPS growth about 200 basis points above revenue growth (around 15%-17% in constant currency).

Krolo said the company remains committed to delivering 30%+ EBITDA margins “even in the post-Liberation Day world,” while noting the outlook assumes no further tariffs beyond what is already reflected and stable FX at 1.17. He also said the plan includes share repurchases of $200 million per year.

At the midpoint of the plan, Krolo said Birkenstock expects about EUR 1 billion of incremental revenue in fiscal 2028 versus fiscal 2025, remarking that it took the company “250 years to come to EUR 2 billion,” and “three years for an additional EUR 1 billion.” He said Americas and EMEA are expected to grow double digits, while APAC is expected to grow about twice as fast—doubling revenue over three years.

Regional strategies: retail expansion, engineered distribution, and APAC scaling

Americas President David Kahan said the Americas region includes around 10,000 points of distribution compared with 14 company-owned stores at the end of 2025 (he noted the store count had recently moved to 15). Kahan said the region will contribute “over 10% growth” over the next three years and emphasized that B2B is expected to grow faster than DTC due to the scale of the business, while the company leans into DTC through store expansion.

Kahan highlighted the “emerging youth” consumer (roughly ages 14 to mid-20s) as the fastest-growing demographic and said Birkenstock customers average 3.6 pairs, implying runway among newer buyers. He argued the company operates a “pull model,” citing examples of high full-price realization at retailers, and said distribution is vendor-managed by Birkenstock “by door, by channel, and by calendar.”

For retail, Kahan said the company plans to open 30 additional stores in the Americas, guided by a “bulletproof retail model” with metrics including cash return in 12-18 months and a year-two break-even target of 60%.

In EMEA, regional leader Nico described a business operating in 61+ countries with dot-com in 27 countries, 42 stores, and a mono-brand footprint across owned and partner stores of 150. He said EMEA offers the best margin profile among the three regions and outlined growth drivers including under-penetrated European markets (such as France, the U.K., and Spain), youth and young male consumers, further DTC penetration, and continued growth in closed-toe styles beyond Boston.

In APAC, Klaus said the region is more heavily oriented toward mono-brand retail and positioned “very premium” in a premium luxury segment. He said APAC currently has eight online stores, 245 mono-brand stores (41 owned), and about 2,200 wholesale stores, largely in Japan and Australia. Klaus said APAC revenue is expected to double over the next three years, supported by DTC-led growth and a balanced 50/50 shoes and clogs mix, and he outlined plans to open 70 stores and add 100 partner stores.

Supply chain and capacity: targeting 10% annual unit growth

Supply chain leader Jakob said Birkenstock’s vertically integrated model—seven factories in Germany and Portugal, with an eighth expected—remains central to quality control, IP protection, and responsiveness. He said the supply chain is expected to support unit growth of 10% per year and higher growth in production hours as product mix shifts toward more premium and more complex executions.

Jakob said more than 95% of products are assembled in the company’s German factories and that more than 70% of units are contracted with 5-9 months of visibility through the order book, which he said improves planning and efficiency.

He outlined expansion work underway at key sites including Görlitz (focused on cork-latex output), Pasewalk (EVA and PU technologies), Arouca (Portugal; focusing on uppers and complex executions), and the newly acquired Wittichenau facility near Dresden, which he said is expected to be operational in 2027. He also said the company is exploring further expansion of Pasewalk and evaluating additional brownfield opportunities.

About Birkenstock (NYSE:BIRK)

Birkenstock Group AG, listed on the New York Stock Exchange under the symbol BIRK, is a global footwear manufacturer renowned for its anatomically contoured footbeds and iconic sandal designs. The company’s core product lines include classic models such as the Arizona, Boston and Madrid, alongside a range of clogs, shoes and orthotic insoles. In addition to footwear, Birkenstock offers complementary accessories, including socks and leather care products, reinforcing its commitment to foot health and comfort.

Birkenstock reaches consumers through a diversified distribution network that combines direct-to-consumer channels—such as branded retail stores and e-commerce platforms—with wholesale partnerships spanning specialty footwear retailers, department stores and select online marketplaces.