By Savyata Mishra
May 13 (Reuters) – Birkenstock missed Wall Street estimates for second-quarter sales and profit on Wednesday due to uneven demand for its premium sandals and clogs and as the Middle East conflict delayed some shipments to the region.
Shares of the German sandal maker were down 6.5% in premarket trading in New York as it also flagged a 6 million euros ($7.02 million) hit to its Europe, Middle East and Africa (EMEA) segment due to the U.S-Israeli war on Iran.
About half of the impact came from an inability to complete some deliveries to the region, Birkenstock said, while the rest reflected muted consumer sentiment in Europe driven by higher energy costs and persistent inflation linked to the war.
The results come against a more uncertain backdrop for discretionary spending, as geopolitical tensions and elevated inflation temper consumer sentiment. However, premium players such as Birkenstock have been relatively resilient in recent quarters.
“The company’s …commentary shows geopolitical disruption is now flowing through both logistics and demand, so further regionalised pressure cannot be ruled out if the conflict persists,” Sam North, market analyst at eToro, said.
The shoemaker produces 95% of its footwear in Germany and distributes globally. The Middle East accounts for only a small portion of its EMEA business.
Birkenstock kept its annual sales and profit forecasts unchanged despite the Middle East impact, banking on controlled distribution, a broader product assortment and full-price selling.
Revenue growth at the company was led by the Asia-Pacific, where sales jumped 22% on a reported basis during the quarter, while the Americas grew 4% and EMEA rose 10%.
Gross margin fell to 53.9% from 57.7% a year earlier, hit by foreign exchange pressures and U.S. tariffs, partly offset by higher prices.
It posted quarterly revenue of 618.3 million euros, missing analysts’ average estimate of 620.07 million euros, according to data compiled by LSEG.
It earned 0.50 euros per share on an adjusted basis, down 9% from a year earlier and below estimates of 0.59 euros per share.
Birkenstock stuck by its fiscal year 2026 forecast of 13% to 15% constant-currency sales growth. Analysts on average were anticipating growth of 11.32%. Its annual profit forecast of 1.90 euros to 2.05 euros per share was also reiterated.
($1 = 0.8546 euros)
(Reporting by Savyata Mishra in Bengaluru; Editing by Leroy Leo and Devika Syamnath)
