Birkenstock has today missed Wall Street estimates for second-quarter sales due to uneven demand for its premium sandals and clogs, and said the Middle East conflict delayed some shipments to the region.
The German sandal maker also flagged a €6m impact to its Europe, Middle East and Africa (EMEA) segment due to the US-Israeli war on Iran.
About half of the impact came from the company being unable to complete certain deliveries to the region, Birkenstock said, adding that the rest of the impact reflected softer consumer sentiment in Europe driven mainly by higher energy costs and persistent inflation linked to the conflict.
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.
Birkenstock kept its annual sales and profit forecasts unchanged despite the Middle East impact, as the company leans on controlled distribution 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 US tariffs, partly offset by higher prices.
It posted quarterly revenue of €618.3ms, missing analysts’ average estimate of €620.07m, according to data compiled by LSEG.
It earned €0.50 per share on an adjusted basis, down 9% from €0.55 a year earlier.
