Birkenstock Posts Q4 Beat, Offset By Ongoing FX, Tariff Pressures

While Birkenstock Holding PLC (NYSE:BIRK) reported better-than-expected fourth-quarter results, this was overshadowed by the ongoing forex and tariff pressures, according to Guggenheim Securities.

• Birkenstock Holding shares are under pressure. What’s pulling BIRK shares down?

The Birkenstock Holding Analyst: Analyst Simeon Siegel reiterated a Buy rating and price target of $60.

The Birkenstock Holding Thesis: The company reported better-than-expected revenues and expenses for the quarter, which offset headwinds to gross margins from forex and tariff pressures, Siegel said in the note.

Check out other analyst stock ratings.

He added, however, that these ongoing pressures resulted in the full-year guidance coming in slightly below Street expectations.

Birkenstock has continued to report industry-leading revenue growth and margins in constant currency terms, the analyst stated. "We believe investors dinging the company for wholesale-penetration growing GM pressure is not giving them the credit for the offsetting opex improvement that comes with the channel mix," he further wrote.

Birkenstock is well positioned as a "strong brand with ongoing whitespace ahead (by channel, product, geography)," Siegel added.

BIRK Price Action: Shares of Birkenstock Holding had declined by 2.09% to $40.35 at the time of publication on Friday.

Read More:
• Birkenstock Stretches To Meet Demand, But Tariffs, Currency Leave A Sore Spot

Photo by Cineberg via Shutterstock