Birkenstock Holding plc (NYSE:BIRK) is among the 11 Best High Growth Consumer Stocks to Buy Right Now. Deutsche Bank Lowers its Price Target on Birkenstock Holding plc (BIRK) to $49 and Maintains a Buy Rating On February 13, 2026, Deutsche Bank lowered its price target on Birkenstock Holding plc (NYSE:BIRK) to $49 from $50 and maintained a Buy rating. On February 12, 2026, Birkenstock Holding plc (NYSE:BIRK) reported Q1 revenue of EUR 401.9M compared to EUR 361.72M last year. CEO Oliver Reichert said re ...

Core Insights - Birkenstock Holding plc (NYSE:BIRK) is recognized as one of the 12 Best Consumer Stocks to Buy according to Wall Street [1] Financial Performance - For the first quarter, Birkenstock reported revenue of EUR 401.9 million, an increase from EUR 361.72 million year-over-year, indicating strong demand during the holiday season [2][8] - The company aims for a three-year plan targeting 13–15% constant currency revenue growth and EBITDA margins above 30% [2] Management Commentary - CEO Oliver Reichert described Birkenstock as a purpose-driven brand with significant growth potential and emphasized the importance of a vertically integrated supply chain [2] - Management plans to optimize profit per pair while maintaining brand equity by focusing on geography, channel, and product [2] Analyst Sentiment - Williams Trading upgraded Birkenstock to Buy from Hold with a price target of $49, citing valuation as the basis for the upgrade [3] - Goldman Sachs analyst Louise Singlehurst lowered her price target to $59 from $62.80 but maintained a Buy rating, highlighting strong momentum and attractive valuation [4]

Core Viewpoint - The company has outlined its fiscal year 2026 outlook, including revenue targets, capacity expansion plans, stock buybacks, and store openings [1] Group 1: Financial Performance - The company expects revenue growth of up to 15%, reaching a maximum of €2.35 billion, with a gross margin between 57% and 57.5%. Future quarterly reports will focus on the achievement of these targets, particularly the impact of currency fluctuations and a 15% U.S. import tariff, which may reduce gross margin by approximately 100 basis points [2] Group 2: Capacity Expansion - Capital expenditure plans have increased to €110 million to €130 million, up from €85 million in fiscal year 2025. This investment is primarily aimed at enhancing capacity utilization at the Paderborn plant in Germany to alleviate global supply bottlenecks. The ability to realize new capacity before 2027 and support demand will be closely monitored [3] Group 3: Stock and Financial Performance - The company announced a stock buyback program worth $200 million for fiscal year 2026, with the timing and scale of execution dependent on market conditions, which may impact the stock price [4] Group 4: Business Development - The company aims to expand its global direct-operated stores to approximately 150 by 2027, with plans to open 25-30 new stores in the U.S. market. The progress of new store openings and their impact on direct-to-consumer (DTC) sales will be key points of interest [5] Group 5: Operational Status - Revenue from closed-toe shoes, such as the Boston series, accounted for 38% in fiscal year 2025. The sustainability of this growth trend, along with performance in high-growth regions like the Asia-Pacific market, which saw a 31% increase in fiscal year 2025, will require ongoing observation [6]

Core Insights - A significant rotation is occurring in the stock market in 2026, with investors focusing on semiconductor stocks due to ongoing demand and supply shortages as companies expand their datacenter capabilities [1] Group 1: Market Trends - Investors are actively pursuing semiconductor stocks, which are experiencing high demand amid a datacenter buildout boom [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into current industry trends [1]

Core Insights - Birkenstock reported fiscal first-quarter results that met market expectations, with earnings per share of €0.27 and revenue of €401.9 million, reflecting a 17.8% growth in constant currency [1] Group 1: Revenue Growth - Sales grew at a double-digit rate in constant currency across all regions, with increases of 14% in the Americas, 17% in EMEA, and 37% in APAC [2] - Business-to-business (B2B) revenue advanced 24% in constant currency, while direct-to-consumer sales rose 12% [2] Group 2: Profitability Metrics - Adjusted gross margin declined by 290 basis points year over year to 57.4%, impacted by unfavorable currency translation, U.S. tariffs, and channel mix shifts [3] - Adjusted EBITDA increased by 4% year over year to €106 million, but the adjusted EBITDA margin narrowed by 170 basis points to 26.5% compared to 28.2% in the prior-year period [3]

Core Viewpoint - The company BIRK.US reported strong performance for the fiscal year 2025, with significant growth in both revenue and profit, and announced expansion and capital operation plans for fiscal year 2026 [1]. Financial Performance - For the fiscal year 2025 (ending September 30, 2025), total revenue reached €2.1 billion, representing a year-on-year increase of 16%. Net profit surged by 81.8% to €348.3 million, with diluted earnings per share rising from €1.02 to €1.87. In the fourth quarter, revenue grew by 15.5% to €526.3 million, while profit soared by 78.9% [2]. Operational Status - All business segments, sales channels, and product categories experienced growth. The Asia-Pacific market showed outstanding performance with a revenue increase of 31%. In terms of channels, B2B revenue grew by 30%, while DTC (Direct-to-Consumer) business increased by 11%. Regionally, the Americas, EMEA (Europe, Middle East, and Africa), and Asia-Pacific saw growth rates of 16%, 17%, and 47%, respectively [3]. Business Development - The revenue from closed-toe shoes (such as the Boston series) continued to outpace sandals, with its revenue share increasing to 38% in fiscal year 2025. The company enhanced average selling price (ASP) by 5% at constant exchange rates through product mix optimization and targeted pricing. The full-price sales rate exceeded 90%, indicating strong brand premium capability and market demand [4]. Financial Condition - In the third quarter of fiscal year 2025, gross margin improved by 100 basis points to 60.5%, and EBITDA margin reached 34.4%, marking the highest level in the third quarter's history. The significant profit growth reflects the effectiveness of the company's vertically integrated supply chain in cost control [5]. Project Advancement - The company plans to increase capital expenditure for fiscal year 2026 to €110 million-€130 million (up from €85 million in fiscal year 2025) to expand production capacity. Additionally, the company announced a stock buyback plan of $200 million and aims to continue expanding its global direct retail network, targeting approximately 150 stores by 2027 [6].

Core Insights - Birkenstock Holding plc reported strong financial results for Q1 2026, with revenues of €402 million, reflecting an 11% increase on a reported basis and an 18% increase in constant currency, exceeding the annual guidance of 13% to 15% growth [9][12][20] - The company expects to maintain a growth trajectory of 13% to 15% in constant currency over the next three years, with a focus on optimizing profitability and brand equity [5][22] Financial Performance - Q1 2026 revenues were driven by strong demand during the holiday season, with B2B sales up 24% in constant currency and DTC sales up 12% [9][12] - Gross profit margin for Q1 was 55.7%, down 460 basis points year-over-year, while adjusted gross profit margin was 57.4%, down 290 basis points [13] - Adjusted EBITDA for Q1 was €106 million, up 4% year-over-year, with an adjusted EBITDA margin of 26.5% [14] Market Growth and Strategy - The Americas segment continues to grow in double digits, with significant room for growth in the U.S. market, where penetration is only about 5% [6][7] - EMEA markets like Germany and Austria have reached similar penetration levels as the U.S. but still show double-digit growth potential [7] - APAC is identified as a key growth area, with plans to double revenue from this region by 2028 [8] Product and Channel Insights - The company is focusing on balancing B2B and DTC growth, with B2B expected to outpace DTC in the near term [8] - The closed-toe segment accounted for nearly 60% of revenue in Q1, indicating a successful expansion beyond sandals [11] - Retail expansion is a priority, with nine new stores added in Q1, bringing the total to 106 [10] Future Outlook - The company anticipates significant headwinds from foreign exchange and tariffs in Q2, projecting a revenue growth headwind of approximately 700 basis points [18][19] - For fiscal 2026, the company expects adjusted EBITDA of at least €700 million, implying an adjusted EBITDA margin of 30% to 30.5% [20][21] - The expected tax rate is projected to be between 26% to 28%, with adjusted EPS anticipated to be between €1.90 to €2.05 [21]

Financial Data and Key Metrics Changes - The company reported first quarter revenues of EUR 402 million, representing an 11% increase on a reported basis and an 18% increase in constant currency, exceeding the full year guidance of 13%-15% [12][15] - Adjusted net profit for the first quarter was EUR 49 million, up 47% year-over-year, with adjusted EPS of $0.27, a 50% increase from $0.18 a year ago [18][19] - Gross profit margin for the first quarter was 55.7%, down 460 basis points year-over-year, while adjusted gross profit margin was 57.4%, down 290 basis points [17] Business Line Data and Key Metrics Changes - The B2B segment grew by 24% in constant currency, while DTC (Direct-to-Consumer) grew by 12% [12][18] - The closed-toe share of revenue reached close to 60% during the first quarter, with strong sales in clogs, including the Boston silhouette [14] Market Data and Key Metrics Changes - The Americas segment grew by 14% in constant currency, EMEA by 17%, and APAC by 37% in constant currency [16] - The company is under-penetrated in markets like France, Spain, the UK, and the GCC, indicating strong growth potential in these regions [10] Company Strategy and Development Direction - The company aims for 13%-15% top-line growth in constant currency over the next three years, with a focus on maximizing profitability per pair while protecting brand equity [8][9] - The company plans to double its APAC revenue by 2028, steering growth at double the pace of other segments [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's growth potential, citing a total addressable market that includes every human being, with significant room for growth in established markets [9][28] - The company anticipates significant headwinds from foreign exchange and tariffs in the second quarter, projecting a 700 basis point headwind to revenue growth [21][22] Other Important Information - The company plans to repurchase shares for a total consideration of $200 million during fiscal 2026, subject to market conditions [52] - The company ended the quarter with cash and cash equivalents of EUR 229 million and a net leverage of 1.7 times [19][20] Q&A Session Summary Question: Drivers of durable demand momentum for the brand globally - Management highlighted a long runway for growth, with market penetration below 5% in established markets and strong order books for 2026 [28] Question: Allocation of inventory across channels and geographies - Management stated that inventory is allocated to the most profitable channels and regions to optimize brand strength and margin [33] Question: Seasonal progression of margins across quarters - Management indicated that Q1 and Q2 would experience significant FX headwinds, with expected margin pressure from tariffs [41] Question: SG&A and operational leverage - Management acknowledged the impact of tariffs and FX on margins but emphasized the need to balance margin expansion with reinvestment in the business [45] Question: Product trends for the upcoming season - Management noted strong momentum in elevated styles and open-toe silhouettes, particularly in the APAC region [48]

Financial Data and Key Metrics Changes - The company reported first quarter revenues of EUR 402 million, representing an 11% increase on a reported basis and an 18% increase in constant currency, exceeding the full-year guidance of 13%-15% [12][15] - Adjusted net profit for the first quarter was EUR 49 million, up 47% year-over-year, with adjusted EPS of $0.27, a 50% increase from $0.18 a year ago [18][19] - Gross profit margin for the first quarter was 55.7%, down 460 basis points year-over-year, while adjusted gross profit margin was 57.4%, down 290 basis points [17] Business Line Data and Key Metrics Changes - B2B business grew 24% in constant currency, while DTC (Direct-to-Consumer) grew 12% [12][18] - The closed-toe share of revenue reached close to 60% during the first quarter, indicating strong sales in clogs [14] Market Data and Key Metrics Changes - The Americas segment grew 14% in constant currency, EMEA grew 17%, and APAC grew 37% in constant currency [16] - The company is under-penetrated in markets like France, Spain, the U.K., and the GCC, with significant growth potential in these regions [10] Company Strategy and Development Direction - The company aims for 13%-15% top-line growth in constant currency over the next three years, with a focus on maximizing profitability per pair while protecting brand equity [8][9] - The company plans to double its APAC revenue by 2028, steering growth at double the pace of other segments [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's growth potential, citing a total addressable market that includes every human being [8] - The company anticipates significant headwinds from foreign exchange and tariffs in the second quarter, projecting a 700 basis point headwind to revenue growth [21][22] Other Important Information - The company plans to repurchase shares for a total consideration of $200 million during fiscal 2026, subject to market conditions [52][54] - The company ended the quarter with cash and cash equivalents of EUR 229 million and a net leverage of 1.7x [19][20] Q&A Session Summary Question: Drivers of durable demand momentum for the brand globally - Management highlighted a long runway for growth, with market penetration below 5% in established markets and strong order books for 2026 [27][28] Question: Allocation of inventory across channels and geographies - Management stated that inventory is allocated to the most profitable channels and regions to optimize brand strength and margin [32][33] Question: Seasonal progression of margins across quarters - Management indicated that Q1 and Q2 would experience significant FX headwinds, with expected margin pressure from tariffs [41][42] Question: SG&A leverage and operational efficiency - Management acknowledged the impact of tariffs and FX on margins but emphasized ongoing operational improvements and investments in D2C [45][46] Question: Product trends for the upcoming season - Management noted strong demand for elevated styles in both closed-toe and open-toe sandals, with a focus on higher price segments [47][48] Question: Balance sheet and cash usage - Management confirmed intentions to execute the $200 million share repurchase, emphasizing that the stock is undervalued [52][53] Question: Performance of own retail stores - Management reported high single-digit same-store sales growth and significant year-over-year growth in retail revenue [59][60]

Financial Data and Key Metrics Changes - The company reported first quarter revenues of EUR 402 million, representing an 11% increase on a reported basis and an 18% increase in constant currency, exceeding the annual guidance of 13%-15% [8][11] - Adjusted net profit for the first quarter was EUR 49 million, up 47% year-over-year, with adjusted EPS increasing to $0.27, a 50% rise from $0.18 a year ago [14][15] - Gross profit margin for the first quarter was 55.7%, down 460 basis points year-over-year, while adjusted gross profit margin was 57.4%, down 290 basis points [12][13] Business Line Data and Key Metrics Changes - The B2B segment grew by 24% in constant currency, while DTC (Direct-to-Consumer) grew by 12% [8][12] - The closed-toe share of revenue reached close to 60% during the first quarter, indicating strong sales in clogs and other silhouettes [10] Market Data and Key Metrics Changes - The Americas segment saw a revenue increase of 14% in constant currency, while EMEA grew by 17%, and APAC experienced a significant growth of 37% in constant currency [11] - The company noted substantial growth potential in under-penetrated markets such as France, Spain, the UK, and APAC countries like China and India [7][9] Company Strategy and Development Direction - The company aims for a three-year growth target of 13%-15% in constant currency, with a focus on maximizing profitability per pair while protecting brand equity [5][6] - The strategy includes expanding retail presence, with plans to open 40 new stores in the fiscal year to capture in-person shopping demand [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's growth potential, citing a total addressable market that includes every human being, with significant room for growth in established markets [5][6] - The company anticipates significant headwinds from foreign exchange and tariffs in the second quarter, projecting a revenue growth of 10%-12% for the full year [18][19] Other Important Information - The company plans to repurchase shares worth $200 million during fiscal 2026, subject to market conditions [20][52] - Capital expenditures for the quarter were approximately EUR 38 million, focusing on production capacity and retail investments [16] Q&A Session Summary Question: Drivers of durable demand momentum globally - Management highlighted a long runway for growth, with market penetration below 5% in established markets and strong order books for 2026 [24][25] Question: Inventory allocation strategy - The company allocates inventory to the most profitable channels and regions, ensuring a balanced brand presence [30] Question: First quarter growth and future guidance - Management remains conservative with guidance, noting that Q1 is the smallest quarter and the second half is harder to predict [36][38] Question: SG&A and margin improvement - Management acknowledged the impact of tariffs and FX on margins but emphasized operational improvements and the need to reinvest for sustainable growth [43] Question: Product trends for spring/summer - Management noted strong demand for elevated styles in both closed-toe and open-toe categories, with a focus on higher price segments [45][46] Question: Balance sheet and cash uses - Management indicated a willingness to repurchase shares and noted that insiders have been in a blackout period for most of the year [51][52] Question: Own retail performance metrics - The retail segment is growing rapidly, with same-store sales growth in high single digits and a significant increase in retail's share of DTC revenue [57][58]