Birkenstock reports record sales in 2025, but guidance for 2026 weighing on shares

Thanks to strong consumer demand, German sandal maker Birkenstock reported an 18% increase in annual sales, beating its own forecast. However, the company said it now expects sales growth of 13-15% in the next fiscal year, below Wall Street expectations. Against this backdrop, Birkenstock shares have slid 13% in early trading on Thursday, December 18, in New York.

Birkenstock’s revenue in its fiscal 2025, ended September 30, rose 16% year over year to a record EUR2.1 billion, or an 18% gain in constant-currency terms. The number exceeded the company’s target range, CEO Oliver Reichert noted in the earnings release.

Net income for the year jumped 82% to EUR348 million. Earnings per share came in at EUR1.87, up 83%.

"We continue to take share at key wholesale partners who view our brand as a 'must-have.' In fiscal 2025, we reached record revenues of EUR2.1 billion and grew strong double-digits in every segment. We are delivering on white-spaces as promised with closed-toe share of business up 500 basis points to 38%," Reichert said. 

Looking ahead to fiscal 2026, Reichert remarked: "we see a continuation of the strong consumer demand and double-digit growth." Birkenstock forecasts fiscal-2026 revenue growth of 10-12%, or 13-15% in constant currency, implying revenue of EUR2.30-2.35 billion. According to Reichert, the company’s global growth is now constrained only by its production capacity and its desire to maintain scarcity.

Investors responded negatively to the guidance. In premarket trading on Thursday, Birkenstock shares fell 13% to $40.33 apiece and continued to decline during the regular session.

The company's revenue forecast came in slightly below analysts’ expectations, Bloomberg noted. Reichert is seeking to appeal to investors with his "slow-but-steady approach to growth," writes Bloomberg, making sure that consumer demand for Birkenstock’s footwear continues to outpace its production capacity. That approach has allowed the company to raise the average selling price of its shoes and avoid markdowns. 

Reichert has previously offered conservative financial forecasts early in the year and raised his outlook later, Bloomberg pointed out.

Since the start of the year, Birkenstock shares have fallen about 18%. Investors have largely avoided footwear makers, with shares of Adidas AG and Puma SE down even more, Bloomberg writes. It added, however, that Birkenstock differs from most peers in that it owns its own manufacturing facilities.

Wall Street remains upbeat on the company’s prospects, according to MarketWatch data. Birkenstock has 19 “buy” ratings versus three “hold” ratings from analysts. The consensus target price of $58.13 per share implies upside of about 25.3% from the December 17 close.