Birkenstock Reports €2.1 Billion in 2025 Revenue, Beating Guidance by 18%, But Warns of Slower 2026 Growth
German footwear maker Birkenstock Holding PLC (BIRK) delivered strong fiscal 2025 results, reporting revenue of €2.1 billion, a substantial increase that surpassed the company’s own expectations. The revenue growth, measured in constant currency, reached 18%, comfortably exceeding the previously issued guidance range of 15% to 17%.
Strong Demand for Premium Footwear Drives 2025 Performance
The robust financial performance was primarily attributed to sustained strong global demand for Birkenstock’s core product lines, including its premium sandals and clogs. The company has successfully leveraged its brand recognition to drive top-line growth, translating into the revenue beat.
However, the positive earnings report is juxtaposed against a challenging market history for the stock. According to recent financial analysis, the total return for BIRK over the past two years stands at a negative -13.04%. This translates to an annualized return and Compound Annual Growth Rate (CAGR) of -6.75% over the same period, suggesting that investor enthusiasm has been tempered despite the company’s operational strength.
The latest market data shows the stock closing at 42.35, following an open price of 43.54.
Forward Guidance Signals Deceleration in 2026
While 2025 proved successful, management issued a cautious outlook for the upcoming fiscal year, signaling a deceleration in growth. The company warned that revenue expansion will slow in 2026, citing specific operational and macroeconomic constraints.
- Production Limits: The company anticipates hitting capacity constraints, which will naturally limit the volume of products it can bring to market.
- Trade-Related Headwinds: Broader macroeconomic and trade challenges are expected to impact the company’s ability to maintain its high growth trajectory.
This forward-looking caution is a key factor influencing investor sentiment, potentially explaining the stock’s negative performance trend over the last two years, despite recent sales beats.
The strong 2025 sales performance confirms the global appetite for Birkenstock’s premium offerings, but the warning regarding 2026 growth highlights the challenges of scaling production and navigating complex trade environments. Investors are clearly focused on the sustainability of margin and revenue expansion.
Market Context and Investor Sentiment
The discrepancy between the company’s strong operational results (beating revenue guidance) and its stock market performance (negative two-year return) suggests that the market may have already priced in high growth expectations that are now being moderated by the 2026 guidance. The two-year Sharpe Ratio of -1.25 further indicates that the stock has not delivered adequate returns relative to its volatility.
The company’s ability to manage production expansion and mitigate trade risks will be critical for reversing the negative annualized return trend and restoring investor confidence in the medium term.
