Birkenstock Holding PLC Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Matthew Boss - JPMorgan Chase & Co - Analyst : Great thanks. So Oliver, maybe relative to the 20% constant currency revenue growth in the fourth quarter and 18% for the year which both exceeded your plan, you're targeting 13% to 15% constant currency growth for fiscal '26. What's driving the more conservative view for '26? Have you seen any slowdown in demand so far in the first quarter and. How should we think about this more moderate pace of growth within your long-term algorithm?

Question: Matthew Boss - JPMorgan Chase & Co - Analyst : Great, best of luck.

Question: Laurent Vasilescu - Exane Bnp Paribas - Analyst : Good morning. Thank you. Sorry, I had to 696 with the with the zoom, so I apologize about that. Avisa, I wanted to dig a bit more on the margin outlook for 2026 and the impact from FX and tariffs. Can you walk us through in more detail how FX flows through the P&L? Similarly, you took pricing in July to mitigate the tariff impact. Why are you seeing so much margin pressure for tariffs in 2026, and what more can be done to offset some of this?

Question: Laurent Vasilescu - Exane Bnp Paribas - Analyst : Very helpful Ivica and as a follow-up on a finer point on Matt's question, I know you don't guide by quarter, but just because there's, a lot of pressure on the stock, pre-market on this the 13% to 15% top-line, any finer point on just like, on one, could we assume that, top-line could be up high keys on that front.

Question: Laurent Vasilescu - Exane Bnp Paribas - Analyst : Very helpful, Oliver, and we'll look forward to January.

Question: Randy Konik - Jefferies - Analyst : Yeah, can you hear me? Yeah, sorry about that, this unmuted thing. Look, can we talk a little bit about the channel mix a little bit more? I think for the full year B2B was up about 21%, DTC up about 12%, and then in the fourth quarter, the B2B channel was, I think, even stronger, up about 26% in constant currency. How do you think about channel growth? In 2026, do you think B2B will continue to outpace B2C by such a wide margin as it did? And then what are you trying to do to drive continued faster, even faster growth in the B2C channel? Thanks guys.

Question: Randy Konik - Jefferies - Analyst : And when you, and just to follow-up when you say I think you said you're committing to double-digit growth on both channels, is that on a constant currency basis? And lastly, do you expect the again this the growth rate spread to widen or stay about the same or narrow from a, B2B stronger than, DTC, growth rate in 2026? Thanks guys.

Question: Lorraine Hutchinson - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Thank you. Good morning. The growth in EMEA accelerated nicely. What are you seeing in terms of consumer demand in the EU in particular and any comments on first quarter trends there?

Question: Lorraine Hutchinson - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Thank you. And then, it sounds like capacity constraints are the key reason for the slower growth in '26. Would you expect to be back in a position to return to mid to high 10s growth in fiscal '27?

Question: Micheal Binetti - Evercore - Analyst : Hey guys, thanks. Can you hear me okay?

Question: Micheal Binetti - Evercore - Analyst : Hey guys, so I guess on the EBITDA margin guidance, could you just help us unpack it a little bit more? You gave us 100 basis points drag from FX, 100 basis points drag from tariff, so we're trying to bridge to the 130 to 175 basis points in total. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 18, 2025 / 1:00PM, BIRK.N - Q4 2025 Birkenstock Holding PLC Earnings Call I think when we last checked in you had 75 basis points left to recapture from the factory. How should we think about like for like pricing as a as a good guy offsetting the tariffs? And then it sounds like wholesale grows above DTC. So I think that's a positive on the EBITDA margin rate line. Is there any way to help us size a couple of those components?

Question: Micheal Binetti - Evercore - Analyst : Okay, and then I'm just curious, a quick follow, a quick couple of follow-ups so you said. I think you said the units grow about 10%, and that's based on some capacity constraints and your desire to control scarcity. What is the unit growth capacity if you weren't trying to control scarcity? Like what could you produce given where the facilities are at right now? And then Avika, if I'm, if just to clarify, how much the Australia roll-up adds to revenues this year.

Question: Micheal Binetti - Evercore - Analyst : Yeah, completely. And then, okay, and then just, yeah, the part please.

Question: Micheal Binetti - Evercore - Analyst : Okay, thanks a lot guys.

Question: Dana Telsey - Telsey Advisory Group LLC - Analyst : Hi, good morning, everyone. As you think about the DTC channel, was there any difference in performance between ecom and the physical stores? And then with your opening of stores in 2026, where are those stores going to be located regionally? How do you think about it? And is there any difference? In store size and where you're going. And then just lastly, for 2026 price increases, any particular way we should think about it or how you're thinking about pricing, whether it's on closed toe or clogs or open toe for '26. Thank you.

Question: Dana Telsey - Telsey Advisory Group LLC - Analyst : Thank you.

Question: Adrien Duverger - Goldman Sachs Group Inc - Analyst : Hey, good morning. Good afternoon. Thank you very much for, taking my questions. So I have one, could you please comment on the performance of the new products and the opportunity for continued increase of the price mix as well as the appetite for, customers on the new products. And then I'll have a quick follow-up on that, which is on the share of sales from the cloth to shoes. I think you're now at 38%. What are your expectations for the long-term share of sales, from this? Thank you very much.

Question: Adrien Duverger - Goldman Sachs Group Inc - Analyst : Okay, thank you very much. And maybe just on what I have you, what's the opportunity that you see from further practicing? So I think you mentioned you expect about 10%, 10% volume growth over the next few years. So, should we assume that there is between, like the 3%, the 3% to 5% remaining is from your price list and price mix? Is that how we should think about it?

Question: Mark Altschwager - Robert W. Baird & Co Inc - Analyst : Hi can you hear me?

Question: Mark Altschwager - Robert W. Baird & Co Inc - Analyst : Wonderful, thank you for taking the question. With respect to sustaining the mid-teens growth over the next three to five years, can you talk a bit more about what's giving you the confidence that you can continue to add capacity at a fast enough rate to support that growth as the base gets larger, especially as it relates to both labor and components suppliers. And then as a follow-up, you talked about new capacity expansion for the core product and demand is skewing towards the higher end product. Can you give us a sense of how EVA is trending and how the capacity that you've added in Posava is playing into the growth algorithm? Thank you.

Question: Sam Poser - Williams Trading LLC - Analyst : Thank you for taking my question. Can you all hear me?

Question: Sam Poser - Williams Trading LLC - Analyst : So I just We have 14 days or 13 days left in in Q1. Can you give us an, like an update on what Q1 looks like, in more specifics? I mean, the quarter's over pretty much. So, just wonder, I know you said business is very good and so on. But could you give us some details on what the quarter looks like, please, is number one, in more specifics.

Question: Sam Poser - Williams Trading LLC - Analyst : Oliver. Okay,

Question: Sam Poser - Williams Trading LLC - Analyst : Okay. Do you anticipate doing that prior to ICR or at ICR?

Question: Sam Poser - Williams Trading LLC - Analyst : Okay. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 18, 2025 / 1:00PM, BIRK.N - Q4 2025 Birkenstock Holding PLC Earnings Call

Question: Sam Poser - Williams Trading LLC - Analyst : And then secondly, I just want to focus on the factories. There's been lots of conversations about that within. Pasawo, Gurlitz, and Portugal. How the existing framework of your production, you have currently, you had recently said that I believe going into Q3, '26, you expect that those production facilities to be pretty much optimized, given all the changes. Now, it's not to say you're not doing other things, expanding Pasaw and the new factory near Dresden. But within that framework, is that still the same expectation and should we expect production capacity to increase going into the back half of fiscal '26?

Question: Paul Lejuez - Citibank Cameroon SA (Douala Branch) - Analyst : Hey, hopefully you can hear me now, hopefully.

Question: Paul Lejuez - Citibank Cameroon SA (Douala Branch) - Analyst : Hey, sorry about that. Curious about your regional plans for F26. I think you talked about pairs being up 10%, curious how that looks by region, how you're thinking about, the three big regions, and, also curious if, given your capacity constraints, if you're having to restrict your distribution in certain regions. I think you had to do that once with AM. Curious if you're facing that again now. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 18, 2025 / 1:00PM, BIRK.N - Q4 2025 Birkenstock Holding PLC Earnings Call

Question: Paul Lejuez - Citibank Cameroon SA (Douala Branch) - Analyst : Any color you can give around the different growth rates by region, just tied to your guidance, follow your guidance for the year.

Question: Paul Lejuez - Citibank Cameroon SA (Douala Branch) - Analyst : Got it. Good luck, guys. Happy holidays.