The group continues its momentum with a 19% increase in sales this quarter, slightly better than expectations, while operating profit has risen by 32%. Over the past three years, Birkenstock has recorded average annual sales growth of 17.5%; it is targeting between 15% and 17% this year.

Well-established pricing power

With adjusted EBITDA of 34.8% (compared with 33.7% a year earlier), Birkenstock is impressively profitable. Its average operating margin has reached 24% over the last four fiscal years, higher than Kering, Prada, and even competitor Deckers Outdoor Corporation.

Note that Bernard Arnault has been the majority shareholder since 2021. We can take this opportunity to attribute part of the group's success story to him. Once considered old-fashioned, the brand has been the centerpiece of fashion for several summer seasons now: Birkenstock is now positioned at the intersection of luxury and casual wear.

A striking example is the Boston mule, which sold for between €50 and €100 in the early 2020s and was easily found on sale, while it now retails for over €150.

A solid balance sheet... albeit with room for improvement

The net debt/EBITDA ratio stands at 2.27, higher than its competitors: 0.76 for Skechers, 1.44 for Crocs, and zero long-term debt for Deckers.
Interest expenses account for 7.8% of Birkenstock's revenue, compared with 2.5% for Crocs and 1.4% for Puma. This is not a cause for concern, but the comparisons highlight the superior performance of its rivals in this area.

A well-distributed global presence

All regions are experiencing double-digit growth: +23% in America, +12% in Europe, Africa, and the Middle East, and +30% in Asia-Pacific. In the United States this quarter, one-third of annual revenue for 2024 was generated, as was the case for Europe, Africa, and the Middle East. In Asia, Q1 2025 performance remains in line with last year.

Making just over half of its sales in the US, Birkenstock is now less exposed to this market than Crocs or Deckers.

Distribution remains well balanced

In 2024, 60% of sales were made through retailers and 40% online. In Q1, physical sales accounted for 75% of the total. Both channels grew by 19%, but momentum is slowing: growth was still above 25% at the beginning of 2024.

An industrial advantage in Germany

Almost entirely German production is becoming a strategic advantage, as textile imports from Asia are under pressure. The CEO has assured that customs duties will be passed on in full to prices worldwide.

Share price has rebounded on the stockmarket

The share price has returned to positive territory in FY 2025. The announcement was reassuring, notably thanks to a revenue target at the high end of the range and an EBITDA margin now expected at 31.8%. If this target is reached, EBITDA would increase by 20% year-on-year.