Birkenstock Holding plc (NYSE:BIRK) shares fell on Wednesday after the company reported second-quarter adjusted EPS below estimates and margin pressure tied to unfavorable currency translation, evolving U.S. tariff policies and ongoing instability in the Middle East.
Despite the softer profitability, the German shoemaker posted double-digit constant-currency revenue growth across all regions, led by APAC, and reaffirmed its 2026 sales and adjusted EPS guidance.
What Happened?
Birkenstock reported second-quarter adjusted earnings per share of 59 cents, missing the analyst consensus estimate of 70 cents. Quarterly sales of $724.068 million outpaced the Street view of $723.930 million.
Revenue increased 8% on a reported basis and 14% in constant currency.
The company reported double-digit constant-currency revenue growth across all regions, led by APAC with 30% growth, followed by the Americas at 14% and EMEA at 11%. On a reported basis, revenue rose 4% in the Americas, 10% in EMEA and 22% in APAC.
In the quarter, Birkenstock reported a quarterly gross profit margin of 53.9%, down 380 basis points year over year. This was primarily due to unfavorable currency translation (230 basis points), incremental U.S. tariffs (90 basis points) and channel mix (30 basis points).
Adjusted EBITDA margin was 32.1% in the quarter, down 270 basis points from 34.8% in the prior year period.
“In an overall challenging environment, we continue to see strong opportunities,” said CEO Oliver Reichert. “Despite the ongoing instability in the Middle East, persistent inflationary pressures, US tariff policy evolving unfavorably for us and continued F/X headwinds, we delivered constant currency revenue growth of over 14%.”
Investing In Production Capacity
Birkenstock invested approximately 21 million euros in capital expenditures during the fiscal second quarter of 2026, primarily to add production capacity as well as to expand retail operations globally.
The firm ended the quarter with cash and cash equivalents of 201 million euros and net leverage of 1.7x as of March 31, 2026, compared to 1.5x as of September 30, 2025, due to typical cash seasonality.
Outlook
Birkenstock Holding affirmed 2026 adjusted EPS guidance of $2.22-$2.40, compared with analyst estimates of $2.39.
The company also reaffirmed FY2026 sales guidance of $2.759 billion-$2.808 billion, versus estimates of $2.740 billion.
BIRK Price Action: Birkenstock Holding shares were down 13.74% at $32.73 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
Photo by Cineberg via Shutterstock
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