The German footwear maker cited a 6 million euros hit to EMEA sales due to delayed shipments and weaker European demand.
Birkenstock reported second-quarter sales below Wall Street estimates, attributing the shortfall to disruptions from the Middle East conflict and uneven demand for its premium products. The company flagged a 6 million euros impact on its Europe, Middle East, and Africa segment, with half stemming from incomplete deliveries to the region and the rest from softer consumer sentiment in Europe linked to inflation and energy costs.
Revenue growth was led by Asia-Pacific, where sales surged 22%, while the Americas and EMEA regions grew 4% and 10%, respectively. Gross margin declined to 53.9% from 57.7% a year earlier, pressured by foreign exchange and U.S. tariffs, though partially offset by higher prices. Despite the challenges, Birkenstock maintained its annual sales and profit forecasts.
Shares fell 8% in premarket trading in New York following the announcement, reflecting investor concerns over the geopolitical and macroeconomic headwinds affecting discretionary spending.