Birkenstock (BIRK): Fiscal Q2 2026

The numbers (in constant currency & not the reported numbers, which are distorted by FX, which can reverse later)

- Total revenue: €618M, +14% cc, inside the 13–15% FY26 guide

- Americas: +14% cc, steady at Q1's pace

- EMEA: +11% cc (vs +17% in Q1); ~300 bps of the slowdown is due to the Iran war hit

- APAC: +30% cc, still by far the strongest segment. Huge potential here

- B2B: +15% cc (vs +24% in Q1); DTC: +12% cc, steady with Q1

- Gross margin: 53.9% vs 57.7%, down 380 bps on tariffs, FX, and mix

- Adj. EBITDA margin: 32.1%, above the FY guide of 30–30.5%

- FY26 guide maintained: 13–15% cc revenue, 30–30.5% adj. EBITDA margin, 57.0–57.5% adj. gross margin, €1.90–€2.05 adj. EPS

Stock was down ~12% pre-market and now opened down -5%. This is an opportunity for investors. The business is fine. Remember this print is in the middle of a hot war!

Key Takeaways:

The tape is treating this as a double miss, but the business grew 14% cc, right in line with the guide. The most important number is Americas at +14% cc, steady with Q1. Any 'U.S. consumer is rolling over' narrative coming out today is contradicted by the segment running at the same pace as last quarter. The +4% reported headline is FX.

The channel mix is actually encouraging. B2B slowed sharply, but DTC held at +12% cc, and DTC is the higher-margin, brand-controlled channel. That's better quality growth.

The one number worth flagging is gross margin. Down 380 bps from tariffs, FX, and mix, and well below the FY guide of 57.0–57.5%. This is understandable. EBITDA margin is fine and actually running above the guide at 32.1%, thanks to operating leverage.

Thesis check: Thesis is Intact. We don't own BIRK for the next two quarters of margin movement. We own it for the long-term thesis: an iconic, scarce premium brand with genuine pricing power, controlled distribution that protects brand equity, and a multi-decade runway in APAC where penetration is still tiny. Tariffs come and go, FX cuts both ways, and regional wars will not last forever. The stock is cheap at a 16x PE ratio (forward).

What matters is whether the brand is still compounding, whether pricing power is intact, and whether distribution discipline is holding. On all three, this print is a clean yes.

A 12% drawdown in a quarter where the brand grew 14% cc is an opportunity for investors.