Birkenstock Q1 Earnings Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Should l Buy BIRK?
Source: seekingalpha
- Earnings Performance: Birkenstock reported Q1 GAAP EPS of €0.27 with revenue of €401.9 million, reflecting an 11.1% year-over-year growth, indicating the company's stable growth potential in the market.
- Gross Margin Decline: The adjusted gross profit margin stood at 57.4%, down 290 basis points from 60.3% in the prior year, highlighting the impact of cost pressures on profitability, which may affect future pricing strategies.
- EBITDA Growth: Adjusted EBITDA reached €106 million, up 4% year-over-year, although the EBITDA margin decreased to 26.5%, down 170 basis points from 28.2% in the previous year, indicating challenges in cost control.
- Investor Outlook: At the Investor Day, Birkenstock tempered its growth outlook; however, analysts reiterated a “Buy” rating, reflecting confidence in the company's long-term potential.
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Analyst Views on BIRK
Wall Street analysts forecast BIRK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BIRK is 59.05 USD with a low forecast of 49.00 USD and a high forecast of 66.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 40.170
Low
49.00
Averages
59.05
High
66.00
Current: 40.170
Low
49.00
Averages
59.05
High
66.00
About BIRK
Birkenstock Holding plc operates through Birkenstock Group B.V. & Co. KG and its subsidiaries. Birkenstock is a global brand, which has developed a unisex portfolio of footbed-based products that serve consumers of all geographies, genders, ages, and income levels. Its proprietary footbed, which reflects the anatomy of the human foot, represents the foundation of its brand and products. It operates a vertically integrated manufacturing base and produces all its footbeds in Germany. BIRKENSTOCK offers a wide range of products that go beyond footwear, including sleep systems and natural cosmetics, catering to both entry-level and luxury markets. The Company operates its channels, utilizing the business-to-business (B2B) channel to facilitate brand accessibility while fully engaging consumers in its direct-to-consumer (DTC) channel, which offers its complete product range and access to its silhouettes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Birkenstock to Announce Q1 Earnings on February 12
- Earnings Announcement: Birkenstock Holding (BIRK) is set to release its Q1 earnings on February 12 before market open, with consensus EPS estimates at $0.31, reflecting a substantial year-over-year increase of 72.2%, indicating a significant improvement in profitability.
- Revenue Expectations: Analysts forecast that Birkenstock's Q1 revenue will reach $478.24 million, representing a 32.1% year-over-year growth, showcasing the company's ability to capitalize on strong market demand.
- Estimate Revision Trends: Over the past three months, EPS estimates have seen seven upward revisions with no downward adjustments, indicating increased market confidence in Birkenstock's profitability; however, revenue estimates have experienced three upward and seven downward revisions, suggesting mixed views on revenue growth.
- Investor Patience: Despite Birkenstock tempering its growth outlook during the Investor Day presentation, analysts have reiterated a “Buy” rating, reflecting ongoing confidence in the company's long-term potential.
See More
Birkenstock Q1 Earnings Highlights
- Earnings Performance: Birkenstock reported Q1 GAAP EPS of €0.27 with revenue of €401.9 million, reflecting an 11.1% year-over-year growth, indicating the company's stable growth potential in the market.
- Gross Margin Decline: The adjusted gross profit margin stood at 57.4%, down 290 basis points from 60.3% in the prior year, highlighting the impact of cost pressures on profitability, which may affect future pricing strategies.
- EBITDA Growth: Adjusted EBITDA reached €106 million, up 4% year-over-year, although the EBITDA margin decreased to 26.5%, down 170 basis points from 28.2% in the previous year, indicating challenges in cost control.
- Investor Outlook: At the Investor Day, Birkenstock tempered its growth outlook; however, analysts reiterated a “Buy” rating, reflecting confidence in the company's long-term potential.
See More
Amazon Stock Faces Seventh Straight Loss Amid Market Volatility
- Amazon Stock Decline: Amazon has experienced its seventh consecutive day of losses, with a total drop of 16% during this streak, marking its worst seven-day performance since November 2022; another decline on Thursday would tie its longest losing streak since 2019, indicating market concerns about its future performance.
- McDonald's Earnings Beat: McDonald's reported earnings and revenue that exceeded analyst expectations, driven by its value strategy that successfully attracted customers, with shares just 2% shy of their all-time high, although it is set to end a five-week winning streak, reflecting market confidence in its growth potential.
- Strong Energy Sector Performance: The energy sector has emerged as the best-performing industry this year, up over 20%, with the State Street Energy Select Sector SPDR ETF (XLE) hitting an all-time high on Wednesday, while ExxonMobil and Chevron reached new highs, showcasing investor optimism in the energy market.
- Coinbase Faces Challenges: Coinbase is set to report earnings after the bell, but its stock has been battered amid the crypto meltdown, plunging more than 60% from its record close in July and on track for a fourth straight losing month, the longest streak since 2022, reflecting market concerns about its profitability.
See More
Eddie Bauer Files for Voluntary Chapter 11 Bankruptcy Protection Amid Operational Pressures
- Bankruptcy Filing: Eddie Bauer LLC announced on Monday that it has filed for voluntary Chapter 11 bankruptcy protection, primarily due to tariff uncertainty and mounting operational pressures, highlighting the severe financial challenges the company faces.
- Restructuring Agreement: The company has entered into a Restructuring Support Agreement with its secured lenders and commenced voluntary bankruptcy proceedings in the U.S. Bankruptcy Court for the District of New Jersey, aiming to maintain operations and seek a buyer through restructuring.
- Retail Operations Continuity: Despite entering bankruptcy, Eddie Bauer's stores in the U.S. and Canada will remain open for liquidation sales, maximizing asset value while searching for a going-concern buyer, indicating a strategic approach to asset management during financial distress.
- E-commerce Business Stability: Eddie Bauer's e-commerce and wholesale operations, which transitioned to Outdoor 5, LLC in January, remain unaffected by the bankruptcy process, suggesting that the company has managed to stabilize part of its business during this transition.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Birkenstock Investor Day Outlook Highlights
- Revenue Growth Revision: Birkenstock now anticipates revenue growth between 13% and 15% over the next two years, down from earlier mid-to-high teens forecasts, reflecting a shift towards B2B sales and production constraints that may weaken market confidence in the company's future performance.
- Gross Margin Downgrade: The company has lowered its gross margin forecast from over 60% to a range of 57% to 58%, indicating pressure on profitability amid rising production costs and increased market competition, which could affect investors' long-term valuation of the company.
- B2B vs. DTC Sales Disparity: Management highlighted that B2B sales require approximately 2.5 pairs sold to equal the revenue of one DTC sale, and while B2B orders are typically placed nine months in advance, their slower revenue growth compared to DTC impacts overall revenue performance.
- Stock Performance Weakness: Despite BTIG analysts maintaining a bullish outlook on Birkenstock, the stock has declined 39% from last year, reflecting market concerns over slower revenue growth and tighter margins, which may lead investors to remain cautious in the short term.
See More
Birkenstock to Announce Q1 Earnings on February 12
- Earnings Announcement: Birkenstock Holding (BIRK) is set to release its Q1 earnings on February 12 before market open, with consensus EPS estimates at $0.31, reflecting a substantial year-over-year increase of 72.2%, indicating a significant improvement in profitability.
- Revenue Expectations: Analysts forecast that Birkenstock's Q1 revenue will reach $478.24 million, representing a 32.1% year-over-year growth, showcasing the company's ability to capitalize on strong market demand.
- Estimate Revision Trends: Over the past three months, EPS estimates have seen seven upward revisions with no downward adjustments, indicating increased market confidence in Birkenstock's profitability; however, revenue estimates have experienced three upward and seven downward revisions, suggesting mixed views on revenue growth.
- Investor Patience: Despite Birkenstock tempering its growth outlook during the Investor Day presentation, analysts have reiterated a “Buy” rating, reflecting ongoing confidence in the company's long-term potential.
See More
Birkenstock Q1 Earnings Highlights
- Earnings Performance: Birkenstock reported Q1 GAAP EPS of €0.27 with revenue of €401.9 million, reflecting an 11.1% year-over-year growth, indicating the company's stable growth potential in the market.
- Gross Margin Decline: The adjusted gross profit margin stood at 57.4%, down 290 basis points from 60.3% in the prior year, highlighting the impact of cost pressures on profitability, which may affect future pricing strategies.
- EBITDA Growth: Adjusted EBITDA reached €106 million, up 4% year-over-year, although the EBITDA margin decreased to 26.5%, down 170 basis points from 28.2% in the previous year, indicating challenges in cost control.
- Investor Outlook: At the Investor Day, Birkenstock tempered its growth outlook; however, analysts reiterated a “Buy” rating, reflecting confidence in the company's long-term potential.
See More
Amazon Stock Faces Seventh Straight Loss Amid Market Volatility
- Amazon Stock Decline: Amazon has experienced its seventh consecutive day of losses, with a total drop of 16% during this streak, marking its worst seven-day performance since November 2022; another decline on Thursday would tie its longest losing streak since 2019, indicating market concerns about its future performance.
- McDonald's Earnings Beat: McDonald's reported earnings and revenue that exceeded analyst expectations, driven by its value strategy that successfully attracted customers, with shares just 2% shy of their all-time high, although it is set to end a five-week winning streak, reflecting market confidence in its growth potential.
- Strong Energy Sector Performance: The energy sector has emerged as the best-performing industry this year, up over 20%, with the State Street Energy Select Sector SPDR ETF (XLE) hitting an all-time high on Wednesday, while ExxonMobil and Chevron reached new highs, showcasing investor optimism in the energy market.
- Coinbase Faces Challenges: Coinbase is set to report earnings after the bell, but its stock has been battered amid the crypto meltdown, plunging more than 60% from its record close in July and on track for a fourth straight losing month, the longest streak since 2022, reflecting market concerns about its profitability.
See More
Eddie Bauer Files for Voluntary Chapter 11 Bankruptcy Protection Amid Operational Pressures
- Bankruptcy Filing: Eddie Bauer LLC announced on Monday that it has filed for voluntary Chapter 11 bankruptcy protection, primarily due to tariff uncertainty and mounting operational pressures, highlighting the severe financial challenges the company faces.
- Restructuring Agreement: The company has entered into a Restructuring Support Agreement with its secured lenders and commenced voluntary bankruptcy proceedings in the U.S. Bankruptcy Court for the District of New Jersey, aiming to maintain operations and seek a buyer through restructuring.
- Retail Operations Continuity: Despite entering bankruptcy, Eddie Bauer's stores in the U.S. and Canada will remain open for liquidation sales, maximizing asset value while searching for a going-concern buyer, indicating a strategic approach to asset management during financial distress.
- E-commerce Business Stability: Eddie Bauer's e-commerce and wholesale operations, which transitioned to Outdoor 5, LLC in January, remain unaffected by the bankruptcy process, suggesting that the company has managed to stabilize part of its business during this transition.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Birkenstock Investor Day Outlook Highlights
- Revenue Growth Revision: Birkenstock now anticipates revenue growth between 13% and 15% over the next two years, down from earlier mid-to-high teens forecasts, reflecting a shift towards B2B sales and production constraints that may weaken market confidence in the company's future performance.
- Gross Margin Downgrade: The company has lowered its gross margin forecast from over 60% to a range of 57% to 58%, indicating pressure on profitability amid rising production costs and increased market competition, which could affect investors' long-term valuation of the company.
- B2B vs. DTC Sales Disparity: Management highlighted that B2B sales require approximately 2.5 pairs sold to equal the revenue of one DTC sale, and while B2B orders are typically placed nine months in advance, their slower revenue growth compared to DTC impacts overall revenue performance.
- Stock Performance Weakness: Despite BTIG analysts maintaining a bullish outlook on Birkenstock, the stock has declined 39% from last year, reflecting market concerns over slower revenue growth and tighter margins, which may lead investors to remain cautious in the short term.
See More
