Birkenstock Holding plc's stock plummeted 10.01% during intraday trading on Wednesday. The sharp decline followed the release of the company's fiscal second-quarter 2026 results.
The German footwear maker reported quarterly revenue of 618.3 million euros, missing analyst estimates of 620.07 million euros. Adjusted earnings per share fell 9% year-over-year to 0.50 euros, also below expectations. The company attributed the shortfall to uneven demand for its premium sandals and clogs amid a more cautious consumer environment.
Furthermore, Birkenstock flagged a 6 million euro impact to its Europe, Middle East and Africa segment due to the U.S.-Israeli war on Iran, which delayed some shipments and dampened consumer sentiment. The company also cited significant currency translation headwinds and incremental U.S. tariffs as factors pressuring gross profit margins and adjusted earnings. Additionally, JP Morgan cut its price target on the stock from $52 to $49, contributing to negative investor sentiment.
Comments