Birkenstock Holding plc's (BIRK) stock plunged 5.81% in pre-market trading on Thursday, February 20, 2025, despite reporting better-than-expected Q1 earnings and revenue. The German footwear maker's Q1 revenue of €361.7 million ($377.65 million) surpassed analyst estimates of €356.2 million, driven by strong demand for its expensive cork-based sandals and shoes during the holiday season.
Birkenstock's Q1 performance was boosted by double-digit volume growth and mid-single-digit growth in average selling prices. The company witnessed robust demand for its closed-toe silhouettes and boots, particularly in the Asia-Pacific (APAC) region, where it accelerated store openings and B2B partner deliveries. The Americas and Europe, Middle East, and Africa (EMEA) regions also saw revenue growth of 16% and 17%, respectively.
Despite the Q1 beat, Birkenstock maintained its guidance for fiscal 2025, projecting revenue growth of 15% to 17% at constant currency and an adjusted EBITDA margin between 30.8% and 31.3%. Analysts view the reiteration as understandable, given it's still early in the year, though the midpoint of the revenue growth range is slightly below consensus estimates.
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