BIRK Stock Forecast & Price Target

Birkenstock Holding demonstrated robust financial performance, with total revenue for the quarter increasing by 11.1% to €401.9 million, and an impressive 17.8% growth in constant currency. Notably, the Asia-Pacific region showed significant momentum, with revenue rising 28% year-over-year on a reported basis, contributing €60.3 million, which is expected to enhance future growth prospects. Additionally, the company's B2B channel experienced a substantial 24% year-over-year increase at constant currency, underscoring strong demand and expanding business-to-business relationships.

Birkenstock Holding has experienced a notable decline in gross margin, which decreased 290 basis points year-over-year to 57.4%, alongside a projected reduction in FY26 reported sales growth to 11.5% year-over-year, reflecting ongoing foreign exchange and tariff headwinds. The company's adjusted EBITDA margin also fell to 26.5%, down 180 basis points year-over-year, while expected increased tariffs may further pressure both gross margin and EBITDA, projected to decline by an additional 100 basis points in 2026. Furthermore, while operating expenses improved slightly to 38.4% of sales, they remain above market expectations, indicating that cost efficiencies have not fully offset pressures on profitability.