Birkenstock reported a 22% fall in the second quarter of fiscal 2026 (Q2 FY26) net profit while saying revenue increased despite impacts from conflicts in the Middle East, tariffs and inflation.
For the quarter ended 31 March 2026, the German footwear retailer posted net profit of €82m ($96m).
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Revenue increased 8% to €618m, with constant currency growth of 14% across all regions. Earnings per share (EPS) fell to €0.45 from €0.56.
Adjusted net profit declined 10% to €93m and adjusted EPS was down 9% to €0.50.
The company said this reflected currency translation impacts, incremental US tariffs and a non-cash negative revaluation of the embedded derivative of senior notes.
Profit from operations fell to €155.4m from €175.3m.
Across regions, revenue in the Americas rose 4% on a reported basis and 14% in constant currency.
Europe, the Middle East and Africa (EMEA) revenue increased 10% reported and 11% in constant currency. Meanwhile, Asia-Pacific revenue grew 22% reported and 30% in constant currency.
In EMEA, Birkenstock said the war in the Middle East reduced quarterly revenue by €6m and created an estimated 300 basis point headwind to regional growth.
The company said part of the effect came from delivery disruptions to the region while the remainder reflected weaker consumer sentiment in Europe linked to higher energy costs and inflation.
B2B revenue climbed 9% on a reported basis and 15% in constant currency, supported by growth at partner stores globally.
Direct-to-consumer revenue rose 4% reported and 12% in constant currency.
During the quarter, Birkenstock added five of its own retail stores, bringing its global store count to 111 as of 31 March 2026.
For the six months ended 31 March 2026, revenue increased to €1.02bn from €936m in the prior-year period.
Profit from operations edged down to €233.7m from €239.3m while net profit increased to €132.4m from €125.2m.
The company also confirmed its fiscal 2026 guidance for 13%-15% revenue growth in constant currency.
Birkenstock CEO Oliver Reichert said: “Our business proved very resilient in the fiscal second quarter. Despite the ongoing instability in the Middle East, persistent inflationary pressures, US tariff policy evolving unfavourably for us and continued F/X headwinds, we delivered constant currency revenue growth of over 14%.”
