BIRK Stock Forecast & Price Target

Birkenstock Holding's total revenue for the first quarter increased by 11.1% year-over-year to €401.9 million, reflecting a robust constant currency growth of 17.8%, which is aligned with market expectations. Notably, revenue from the Asia-Pacific region surged by 28% year-over-year, representing a promising future growth opportunity as it accounted for 15% of total revenue, while the Americas contributed significantly, with sales rising 14% in constant currency to €221.7 million. Additionally, the B2B channel demonstrated strong performance, achieving a 24% increase in constant currency, which underscores the brand's broad market appeal and sustainable momentum in both domestic and international markets.

Birkenstock Holding's gross margin for the first quarter declined by 290 basis points year-over-year to 57.4%, indicating pressure on profitability that aligns with expected continued challenges from foreign exchange and tariffs. The forecasted sales growth for fiscal year 2026 has been reduced to 11.5% year-over-year, reflecting a slight downward adjustment from previous estimates, while anticipated impacts from tariffs predict additional declines in both gross margin and EBITDA. Operating expenses, despite decreasing as a percentage of sales, remain above market forecasts, suggesting ongoing operational inefficiencies that may hinder overall financial performance.