Birkenstock warns of tariff, FX hit to margins

(Sharecast News) - Shares in New York-listed Birkenstock plunged in early deals on Thursday despite the German sandal maker topping its full-year targets, as the company warned that US trade tariffs and currency movements would dent profit margins over the coming year. Reporting its fourth-quarter and full-year results for the period ended 30 September, the firm said it expects to report revenue growth of 13-15% at constant currency, translating to revenues of €2.30bn-2.35bn.

Adjusted EBITDA is tipped to come in at least €700m for the current year, up from €667m previously, though the adjusted EBITDA margin would be 30.0-30.5%, down from 31.8% for the year just gone, with the expected decline due to a 100-basis point headwind from FX movements and a 100bp impact from US trade tariffs.

Shares were down 3.7% at $44.67 by 1446 GMT.

Revenues over the fourth quarter increased 15% year-on-year to €526m, with double-digit growth across all regions: 11% in the Americas (18% in constant currency), 16% in EMEA (17% in constant currency) and 33% in Asia Pacific (38% in constant currency.

Adjusted EBITDA rose 17% to €147m, with the adjusted EBITDA margin rising 40bp to 27.8%.

However, for the full year, the adjusted EBITDA margin came in at the top end of the 31.3-31.8% guidance range, with constant-currency revenue growth of 18% to €2.1bn topping the 15-17% company forecast.

"As we look forward into fiscal 2026, we see a continuation of the strong consumer demand and double-digit growth. Our growth is currently only limited globally by our production capacity and desire to maintain scarcity; consumer demand remains robust globally," said chief executive Oliver Reichert.