Birkenstock (BIRK) shares are down about 5% after the German shoemaker issued forward guidance that underwhelmed analysts and investors.
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The company known for its sandals delivered decent quarterly financial results, posting earnings per share (EPS) of $0.70, which topped the $0.67 expected on Wall Street. Revenue in the period came in at $720.54 million, which narrowly beat analysts’ consensus expectations by 2.56%.
However, the company issued forward guidance that disappointed, saying it expects revenue growth for all of this year at the high end of its previous estimate of 15% to 17%, and an adjusted EBITDA margin of 31.3% to 31.8%.
Tariff Adjustments
In its earnings release, Birkenstock acknowledged the impact of 15% U.S. import tariffs on European goods, but said that it planned to manage this additional cost through pricing adjustments and inventory optimization, which should help to secure long-term profitability at the company.
Analysts say that Birkenstock is a strong brand and that the company has pricing power, or the ability to raise prices without losing customers. So far in 2025, BIRK stock has declined 15%, falling alongside other retailers over concerns about tariff impacts on supply chains and global sales.
Is BIRK Stock a Buy?
The stock of Birkenstock has a consensus Strong Buy rating among 17 Wall Street analysts. That rating is based on 15 Buy and two Hold recommendations issued in the last three months. The average BIRK price target of $69.13 implies 40.68% upside from current levels. These ratings could change after the company’s financial results.
