Birkenstock said on Wednesday that second-quarter sales fell short of Wall Street expectations, attributing the shortfall to patchy demand for its premium sandal and clog lines and to shipment interruptions tied to the conflict in the Middle East. The German footwear maker flagged a roughly 6 million euro impact to its Europe, Middle East and Africa - EMEA - operations related to the U.S.-Israeli war on Iran, and its shares slipped 8% in premarket trading in New York.
The company said about half of that 6 million euro impact resulted from deliveries it was unable to complete to the region. The remaining portion was linked to weaker consumer sentiment in Europe, which Birkenstock said was driven primarily by higher energy costs and ongoing inflation that it connects to the conflict.
Management emphasized that the results arrived amid a more uncertain environment for discretionary spending, where geopolitical tensions and elevated inflation are weighing on consumer confidence. Still, the company noted that premium brands like its own have shown relative resilience in recent quarters.
Despite the EMEA setback, Birkenstock maintained its full-year sales and profit guidance. The company pointed to tight control of distribution and continued full-price selling as supporting factors behind its decision to keep forecasts unchanged.
Revenue for the quarter came in at 618.3 million euros, below the analysts' average estimate of 620.07 million euros compiled by LSEG. Regional revenue trends were uneven: Asia-Pacific led the company with a 22% increase on a reported basis, the Americas rose 4%, and EMEA expanded by 10% for the quarter.
Profitability pressures appeared in gross margin, which fell to 53.9% from 57.7% a year earlier. Birkenstock attributed the margin decline primarily to foreign exchange headwinds and U.S. tariffs, effects that were partly offset by higher selling prices.
On an adjusted basis, earnings per share were 0.50 euros, down 9% from 0.55 euros in the year-ago period. The company included a currency reference of $1 = 0.8546 euros.
Operational and market context
From an operational perspective, the company highlighted the direct impact of geopolitical disruption on its logistics and deliveries into the Middle East. The firm quantified the EMEA hit and explained the split between missed physical deliveries and demand softness tied to higher energy costs and inflationary pressures stemming from the conflict.
Management's decision to hold annual targets reflects confidence in distribution discipline and full-price strategies, even as near-term sales and margins face headwinds from currency moves, tariffs, and regional instability.