Birkenstock - comment
Birkenstock had already released the headline results in January, so the results didn’t contain much by way of surprises. Birkenstock will benefit from the new capacity it has added in Germany over time; however, the impact of US tariffs and the strength of the euro will constrain margins in the next few quarters. Birkenstock has decided to wear some of the tariff impact for now, but we would expect to see some clawback over the next quarters. Gross margins fell 290bps (to 57%) with US tariffs causing 130bps of that fall (Adjusted EBITDA margin had an additional 110bp contribution from price rises). The main drag on margins came from currency translation as the € strengthened against the $ (and APAC currencies).