Birkenstock Holding plc (BIRK Quick QuoteBIRK - Free Report) is facing stiff challenges, including tariffs, inflation and impacts from the Middle East War. This Zacks Rank #5 (Strong Sell) has recently hit all-time lows.

BIRKENSTOCK is a global brand which is committed to a clear purpose of encouraging proper foot health.

Backed by a family tradition of shoemaking that can be traced back to 1774, BIRKENSTOCK products range from entry-level to luxury price points. It is the investor of the footbed and has shaped the principle of walking as intended by nature.

BIRKENSTOCK assembles over 95% of all products in Germany and producing the remainder elsewhere in the EU. The company prioritizes the European origin of its raw materials.

BIRKENSTOCK Missed on the Fiscal Second Quarter 2026 Earnings

On May 13, 2026, BIRKENSTOCK reported fiscal second quarter 2026 earnings and missed on the Zacks Consensus Estimate by $0.11. Earnings were $0.59 versus the consensus of $0.70.

Revenue was up 14% in constant currency to EUR 618 million. It saw double-digit revenue growth in constant currency across all segments with the Americas up 14%, EMEA up 11% and APAC up 30%.

B2B revenue growth was up 15% in constant currency and DTC revenue growth jumped 12% in constant currency.

However, gross profit margin was down 380 basis points to 53.9% from 57.7% in the year ago period primarily due to unfavorable currency translation (230 basis points), incremental U.S. tariffs (90 basis points) and channel mix (30 basis points), partly offset by sales price adjustments (net of inflation) and improved capacity absorption.

The company is facing several headwinds including inflationary pressures, tariffs, and the Iran War which impacted Middle East deliveries as well as consumer confidence in Europe.

“Our business proved very resilient in the fiscal second quarter,” said Oliver Reichert, CEO of BIRKENSTOCK.

“Despite the ongoing instability in the Middle East, persistent inflationary pressures, US tariff policy evolving unfavorably for us and continued F/X headwinds, we delivered constant currency revenue growth of over 14%. This performance was well within our near-term and long-term target of 13-15%,” he added.

Analysts Are Bearish on Birkenstock for Fiscal 2026 and 2027

Despite the earnings miss, BIRKENSTOCK still confirmed its full year guidance of 13-15% revenue growth and adjusted gross profit margin of 57% to 57.5%.

But the analysts were bearish and cut earnings estimates for this year and next.

Nine estimates were cut for fiscal 2026, and one raised, in the last week. That brought down the Zacks Consensus Estimate to $2.27 from $2.36. It’s still earnings growth of 11.3% as BIRKENSTOCK made just $2.04 last year.

Nine estimates were also cut for fiscal 2027, and one raised, in the prior 7 days. The Zacks Consensus fell to $2.72 from $2.78. That’s further earnings growth of 19.4%.

This is what it looks like on the price and consensus chart.

Image Source: Zacks Investment Research

Shares of BIRKENSTOCK Plunge to New Lows

BIRKENSTOCK went public in 2023 on the strength of its strong brand. But investors have soured on BIRKENSTOCK over the last year as the shares have sunk to a new all-time low.

Here is the one-year chart compared to the S&P 500 ETF.

Image Source: Zacks Investment Research

The stock has gotten cheaper. It now trades with a forward price-to-earnings (P/E) of 14.3. A P/E ratio under 15 usually indicates a company has value.

BIRKENSTOCK ended the quarter with cash and cash equivalents of EUR 201 million.

While BIRKENSTOCK is still expected to grow earnings this year and next, it is facing several headwinds. Investors might want to stay on the sidelines until some of the uncertainties clear.