Birkenstock Holding plc BIRK is dealing with stiff challenges, together with tariffs, inflation and impacts from the Center East Struggle. This Zacks Rank #5 (Sturdy Promote) has just lately hit all-time lows.
BIRKENSTOCK is a world model which is dedicated to a transparent function of encouraging correct foot well being.
Backed by a household custom of shoemaking that may be traced again to 1774, BIRKENSTOCK merchandise vary from entry-level to luxurious value factors. It’s the investor of the footbed and has formed the precept of strolling as meant by nature.
BIRKENSTOCK assembles over 95% of all merchandise in Germany and producing the rest elsewhere within the EU. The corporate prioritizes the European origin of its uncooked supplies.
BIRKENSTOCK Missed on the Fiscal Second Quarter 2026 Earnings
On Could 13, 2026, BIRKENSTOCK reported fiscal second quarter 2026 earnings and missed on the Zacks Consensus Estimate by $0.11. Earnings have been $0.59 versus the consensus of $0.70.
Income was up 14% in fixed forex to EUR 618 million. It noticed double-digit income progress in fixed forex throughout all segments with the Americas up 14%, EMEA up 11% and APAC up 30%.
B2B income progress was up 15% in fixed forex and DTC income progress jumped 12% in fixed forex.
Nonetheless, gross revenue margin was down 380 foundation factors to 53.9% from 57.7% within the yr in the past interval primarily resulting from unfavorable forex translation (230 foundation factors), incremental U.S. tariffs (90 foundation factors) and channel combine (30 foundation factors), partly offset by gross sales value changes (web of inflation) and improved capability absorption.
The corporate is dealing with a number of headwinds together with inflationary pressures, tariffs, and the Iran Struggle which impacted Center East deliveries in addition to client confidence in Europe.
“Our enterprise proved very resilient within the fiscal second quarter,” mentioned Oliver Reichert, CEO of BIRKENSTOCK.
“Regardless of the continued instability within the Center East, persistent inflationary pressures, US tariff coverage evolving unfavorably for us and continued F/X headwinds, we delivered fixed forex income progress of over 14%. This efficiency was properly inside our near-term and long-term goal of 13-15%,” he added.
Analysts Are Bearish on Birkenstock for Fiscal 2026 and 2027
Regardless of the earnings miss, BIRKENSTOCK nonetheless confirmed its full yr steerage of 13-15% income progress and adjusted gross revenue margin of 57% to 57.5%.
However the analysts have been bearish and minimize earnings estimates for this yr and subsequent.
9 estimates have been minimize for fiscal 2026, and one raised, within the final week. That introduced down the Zacks Consensus Estimate to $2.27 from $2.36. It’s nonetheless earnings progress of 11.3% as BIRKENSTOCK made simply $2.04 final yr.
9 estimates have been additionally minimize for fiscal 2027, and one raised, within the prior 7 days. The Zacks Consensus fell to $2.72 from $2.78. That’s additional earnings progress of 19.4%.
That is what it appears to be like like on the worth and consensus chart.
Picture Supply: Zacks Funding Analysis
Shares of BIRKENSTOCK Plunge to New Lows
BIRKENSTOCK went public in 2023 on the energy of its robust model. However buyers have soured on BIRKENSTOCK during the last yr because the shares have sunk to a brand new all-time low.
Right here is the one-year chart in comparison with the S&P 500 ETF.
Picture Supply: Zacks Funding Analysis
The inventory has gotten cheaper. It now trades with a ahead price-to-earnings (P/E) of 14.3. A P/E ratio underneath 15 normally signifies an organization has worth.
BIRKENSTOCK ended the quarter with money and money equivalents of EUR 201 million.
Whereas BIRKENSTOCK continues to be anticipated to develop earnings this yr and subsequent, it’s dealing with a number of headwinds. Traders would possibly wish to keep on the sidelines till among the uncertainties clear.
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Birkenstock Holding PLC (BIRK) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
