Birkenstock shares slide after tariffs and currency swings squeeze margins

The institution posted fiscal second-quarter gross of 618 cardinal euros, up 8% connected a reported ground and 14% successful changeless currency, broadly successful enactment with expectations.

But nett net dropped 22% to 82 cardinal euros, and operating nett fell 11% to 155.5 cardinal euros, falling abbreviated of the 168.1 cardinal euros analysts had forecast.

Gross margins compressed to 53.9% from 57.7% a twelvemonth earlier, wounded by unfavorable currency moves, higher US tariffs, and costs tied to the acquisition of Birkenstock Australia.

Adjusted EBITDA came successful astatine 198 cardinal euros, representing a borderline of 32.1%.

Despite the net miss, Birkenstock reaffirmed its full-year 2026 targets, projecting constant-currency gross maturation of 13% to 15%, an adjusted gross borderline of 57.0% to 57.5%, and an adjusted EBITDA borderline of 30% to 30.5%.

The institution besides announced a caller $200 cardinal stock repurchase programme for 2026, pursuing a akin buyback the anterior year. Cash reserves exceeded 200 cardinal euros.

Demand for halfway products remained resilient globally. Constant-currency maturation was successful the treble digits crossed each regions and channels, with the Asia-Pacific portion expanding 30%. The institution besides reported a grounds income period for its flagship Arizona sandal successful April.

Headwinds were not constricted to currency and tariffs. Ongoing struggle successful the Middle East weighed connected EMEA gross by astir 6 cardinal euros, representing a astir 300 ground constituent drag, portion muted user sentiment successful Europe, amid elevated vigor costs and inflation, added to the uncertain outlook.