Birkenstock Holding PLC (NYSE:BIRK) posted better-than-expected earnings for the fiscal second quarter and raised its annual outlook, sending its shares more than 7% higher on Thursday morning.
For fiscal 2025, the company now sees revenue growth at the high end of its earlier guidance of 15% to 17% growth in constant currency.
It also raised its adjusted earnings before interest, taxes, depreciation and amortization (EBTIDA) margin guidance to a range of 31.3% to 31.8%, a 50 basis point increase.
This implies an adjusted EBITDA target in the range of €660 to €670, up 19% to 21% year-over-year.
For fiscal Q2, which ended on March 31, revenue of €574.3 million topped estimates of €567.2 million, up 19% year-over-year.
Earnings per share of €0.55 were ahead of the consensus of €0.54, up 41% from the year-ago quarter.
Birkenstock CEO Oliver Reichert said the company was off to a strong start to fiscal 2025 and noted global tariffs may influence consumer behavior.
“We expect that the tariff situation may create a unique shift in consumer behavior in the footwear category with a split between the few brands, like Birkenstock, who manage strong brand equity through relative scarcity and those who distribute their products with less discipline and pricing integrity. We will navigate these uncertain times from a position of strength,” Reichert said.
Shares of Birkenstock added 7.1% at about $58 following the release of its earnings report.