Stock Track | Birkenstock Plunges 8.41% in Pre-Market on Weak Profit Outlook and Tariff Pressures

Stock Track12-18 18:32

Birkenstock Holding plc (BIRK) shares plummeted 8.41% in pre-market trading on Thursday after the company issued a fiscal 2026 profit forecast below Wall Street expectations, citing tariff-related margin pressures.

The German footwear brand expects adjusted earnings per share of 1.90-2.05 euros for fiscal 2026, missing the consensus estimate of 2.11 euros. The company also flagged a 100-basis-point hit to gross margins from U.S. import duties, as its production remains heavily concentrated in Germany. While Birkenstock reported better-than-expected Q4 revenue of 526.3 million euros, investors focused on the weaker guidance.

Analysts note that the Trump administration's 15% tariff on EU goods has exacerbated cost pressures, forcing Birkenstock to implement price hikes and operational efficiencies to offset the impact. The stock's sharp decline reflects concerns over profitability despite robust demand for its products.

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