Birkenstock Shares Slide 13% After Q2 EPS Miss; Target Cut to $51
Birkenstock's Q2 EPS of $0.59 fell short of the $0.70 estimate, triggering a 13% share decline to a 52-week low near $32.44. Analyst lowered the price target to $51 implying 54.26% upside, while revenue hit $723.6 million and Birkenstock reaffirmed 13–15% growth guidance despite gross margin compression to 53.9%.
1. Q2 Earnings Miss and Share Reaction
Birkenstock reported Q2 EPS of $0.59, missing the $0.70 estimate and resulting in a more than 13% share decline to roughly $32.44, marking a 52-week low as investors reacted to the earnings shortfall.
2. Analyst Lowers Price Target
Analyst Peter McGoldrick lowered the price target to $51, still suggesting a 54.26% upside from pre-announcement levels, reflecting confidence in long-term brand strength despite near-term challenges.
3. Gross Margin Compression Drivers
Gross margin compressed to 53.9% from 57.7% year-over-year, driven by unfavorable currency movements, higher US tariffs, inflationary costs and regional disruptions, while rising inventories and promotional pressures signal operational headwinds.
4. Revenue Growth and Outlook
Revenue rose to $723.58 million from $604.17 million in the prior year quarter, and management reaffirmed 13–15% constant-currency revenue growth guidance for full-year 2026, underscoring resilience in its global footwear business.