Birkenstock shares hit lowest level since IPO following earnings report 💥

Birkenstock’s (BIRK.US) results for the second quarter fell short of market expectations, leading to a drop in the share price of over 7% in pre-market trading. Although the company’s revenue rose by nearly 8% year-on-year to €618.3 million, both sales and operating profits fell short of analysts’ forecasts. Investors had been hoping for a stronger growth momentum, but the financial figures showed a slight slowdown compared to last year.

The main reason for the weaker results was external factors over which the company had no direct control. The company noted that the geopolitical situation in the Middle East reduced revenue in the EMEA region by approximately €6 million, which significantly slowed growth in that part of the world. Unfavourable exchange rate fluctuations and US tariffs proved to be an additional challenge, negatively impacting margins and the final net profit, which fell by 22% year-on-year.

RESULTS FOR THE SECOND QUARTER

• Operating profit: €155.5 million, down 11% year-on-year, forecast: €168.1 million
• Revenue: €618.3 million, +7.7% year-on-year, forecast: €620.3 million
• Revenue in the Americas: €324.4 million, up 3.8% year-on-year, forecast: €325.9 million
• B2B revenue: €471.7 million, +9.1% year-on-year, forecast: €479.3 million
• DTC revenue: €146.4 million, +4% year-on-year, forecast: €145.9 million
• Revenue from corporate and other activities: €0.28 million, down 75% year-on-year, forecast: €1.1 million
• Adjusted EBITDA: €198.3 million, down 0.9% year-on-year, forecast: €199.5 million
• Net profit: €81.9 million, down 22% year-on-year, forecast: €109.4 million
• Adjusted earnings per share of €0.50 compared with €0.55 year-on-year; forecast: €0.59
• Revenue in the EMEA region: €235.1 million, up 10% year-on-year
• Revenue in the APAC region: €58.6 million, up 22% year-on-year

ANNUAL FORECAST

• Birkenstock still expects an adjusted EBITDA margin of 30%–30.5%, with a forecast of 30.4%
• Birkenstock continues to forecast revenue growth of between 13% and 15% at constant exchange rates

COMMENTARY AND CONTEXT

• Birkenstock continues to forecast an adjusted gross profit margin of 57%–57.5% for 2026
• Birkenstock continues to forecast adjusted earnings per share of €1.9–2.05 for 2026, taking into account the impact of tariffs and exchange rates
• The company has confirmed its three-year plan, which forecasts revenue growth of 13–15% at constant exchange rates and an adjusted EBITDA margin of over 30%

Despite these difficulties, Birkenstock’s management board has decided not to revise its full-year forecasts, projecting revenue growth of 13–15%. For some in the market, this was a disappointing signal, as it had been expected that the company would raise its targets for the second half of 2026. However, CEO Oliver Reichert’s strategy remains cautious and is based on selective sales and maintaining cost discipline, which is intended to protect the brand in the face of ongoing consumer uncertainty.

Birkenstock (BIRK.US) shares plummeted following the results, breaking through previous lows and falling to their lowest level since the initial public offering (IPO). The share price is in a strong downtrend, trading below all key moving averages, and today’s price gap confirms that supply is fully dominating this stock. Source: xStation