BIRK Stock Forecast & Price Target

Birkenstock Holding demonstrated robust financial growth in the recent quarter, with total revenue increasing by 11.1% to €401.9 million, and a significant rise of 17.8% when measured in constant currency. Notably, the Asia-Pacific region reported a remarkable 28% year-over-year revenue improvement, contributing €60.3 million and indicating strong future growth potential. Furthermore, the company's B2B channel expanded by 24% in constant currency, highlighting the brand's resilience and broad appeal across diverse market segments.

Birkenstock Holding's first quarter gross margin declined by 290 basis points year-over-year to 57.4%, reflecting ongoing pressure from foreign exchange fluctuations and anticipated tariff impacts, which are expected to lead to further margin declines in FY26. The company's reaffirmed annual outlook has been adjusted, projecting FY26 reported sales growth of only 11.5% year-over-year to €2.338 billion, down from a prior estimate of €2.351 billion, indicating weakening sales expectations. Moreover, the adjusted EBITDA margin for the first quarter decreased by 180 basis points year-over-year to 26.5%, demonstrating the adverse effects of rising operating expenses, which accounted for 38.4% of sales, surpassing market forecasts and suggesting potential challenges in maintaining profitability.