Birkenstock Books Lower Profit Margin as Tariffs, Currency Effects Weigh

By Joshua Kirby

Birkenstock said profitability took a hit at the start of its fiscal year from U.S. trade tariffs and the dollar's weakening against the euro.

The German sandalmaker made adjusted earnings before interest, taxes, depreciation and amortization of 106 million euros ($125.9 million) in the three months through December, an increase of 4% on year. The adjusted Ebitda margin slid to 26.5% for the quarter from 28.2% a year earlier as a result of currency translations and rising trade tariffs in the U.S, the company said.

Net profit more than doubled on year to 51 million euros, Birkenstock said.

As previously reported in preliminary results last month, Birkenstock's revenue rose 11% on the year over the quarter to 402 million euros. Growth was driven by wholesale, which booked an 18% increase on year, while direct retail sales lagged with a 4% rise. That is a worrying sign, analysts at Bernstein said at the time, since faster growth in retail is generally the sign of a healthy brand.

Birkenstock, which is listed in New York, said at a capital markets event last month that it was aiming for double-digit revenue growth over the coming three years, along with an adjusted Ebitda margin above 30% by 2028.

A tight supply chain keeps capacity constrained by design, Chief Executive Oliver Reichert said.

"We will steer our business by geography, channel and product to maximize profit per pair and maintain strong brand equity," he said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

February 12, 2026 06:08 ET (11:08 GMT)