Birkenstock: Robust Global Demand, Temporary Supply Constraints, and Channel Strategy Support Upside and Buy Rating

Birkenstock Holding plc, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Paul Lejuez from Citi maintained a Buy rating on the stock and has a $65.00 price target.

Paul Lejuez has given his Buy rating due to a combination of factors that highlight Birkenstock’s strong demand profile and favorable growth outlook. He notes that recent results, including the holiday period and first quarter, showed robust sales momentum, particularly in closed-toe styles like the Boston, underscoring healthy consumer appetite for the brand. Management’s commentary points to broad-based strength across regions, with especially rapid expansion in APAC, and confirms that wholesale partners are highly engaged in promoting the brand, effectively amplifying marketing without materially increasing Birkenstock’s own spend. These dynamics, coupled with strong full-price sell-through, support confidence in the company’s ability to sustain attractive top-line growth.

At the same time, Lejuez views current supply-chain and production capacity constraints as a temporary issue rather than a structural problem, noting that demand currently exceeds the company’s ability to supply product, particularly during peak seasons. He emphasizes that management is prioritizing long-term relationships with wholesale partners—who view Birkenstock as their most profitable footwear brand on the floor—over short-term volume gains, which should preserve brand equity and channel health. Over time, he expects Birkenstock to increasingly convert new customers discovered through wholesale into its own direct-to-consumer channels, improving margins and customer lifetime value. With this backdrop of strong demand, supportive partner economics, and a clear pathway to greater capacity and channel optimization, he sees meaningful upside potential to the stock, justifying a Buy recommendation.

In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $60.00 price target.