Birkenstock Reports 22% Net Profit Decline in Q2 2026 Amid Tariffs and FX Headwinds, Confirms Full-Year Guidance
BIRK is trading near its 52-week low of $33.06 (6.6% above the low).
Summary
Birkenstock reported mixed fiscal second-quarter 2026 results, with revenue growth meeting constant currency guidance but net profit and EPS declining significantly due to external headwinds, though full-year guidance was reaffirmed.
Key Events · Earnings and Guidance · BIRK
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Q2 Revenue Growth
Reported revenue increased 8% to EUR 618 million (14% in constant currency), which was within the company's guidance of 13-15% in constant currency.
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Profitability Decline
Net profit decreased 22% year-over-year to EUR 82 million, and diluted EPS fell 20% to EUR 0.45. Adjusted EBITDA also saw a slight 1% decline to EUR 198 million.
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Margin Compression
Gross profit margin dropped 380 basis points to 53.9%, and Adjusted EBITDA margin decreased 270 basis points to 32.1% compared to the prior-year period.
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Headwinds Cited
The company attributed the declines primarily to unfavorable currency translation, incremental U.S. tariffs, channel mix, and impacts from conflicts in the Middle East.
Analysis · BIRK · Manufacturing
Birkenstock's second-quarter results show a significant decline in profitability, with net profit down 22% and EPS down 20%, alongside notable margin compression. While constant currency revenue growth of 14% was within guidance, reported revenue growth was lower, and the profit hit was substantial. The company cited external factors like unfavorable currency translation, U.S. tariffs, and geopolitical conflicts as primary drivers. The reaffirmation of full-year guidance provides some stability, but the immediate impact on earnings and margins is a concern for investors.
At the time of this filing, BIRK was trading at $35.25 on NYSE in the Manufacturing sector, with a market capitalization of approximately $7B. The 52-week trading range was $33.06 to $59.50. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.