The move shows optimism ahead of the German footwear company’s quarterly report.
U.S.-listed shares of Birkenstock Holding were up 3% in premarket trading on Thursday, ahead of the German footwear company’s quarterly report before the market opens.
Analysts expect its third-quarter revenue to rise 19.3%, similar to the preceding two quarters, according to Kofin data. Investors will be watching for comments on the impact of tariffs, price hikes, supply chain disruptions, and the demand landscape in North America and Europe.
Piper Sandler, which reaffirmed its ‘Overweight’ rating this week, noted that unfavorable foreign exchange rates could pressure the company’s reported revenue.
Birkenstock, known for its clogs or sandals, is in a notably good position. In May, the company raised its annual profit outlook and authorized a $200 million share buyback. Still, BIRK shares are down 11% year-to-date.
The stock has gained nearly 6% in the last two sessions, and the latest retail sentiment reading on Stocktwits is ‘extremely bullish,’ signaling investor optimism.
Late last month, Goldman Sachs raised its rating on Birkenstock to ‘Buy’ from ‘Neutral,’ citing “robust” momentum and an attractive valuation for the company’s shares in a challenging macroeconomic backdrop.
Footwear companies face broad pressure from U.S. import tariffs on major Asian manufacturing hubs, including China and Vietnam.
Swiss company On Holding posted strong quarterly sales and raised its full-year target, attributing the increase to recent price increases on its shoes. In the future, CEO Martin Hoffmann told Stocktwits that the company is now “in a very good position to digest” the tariffs.
Birkenstock also raised prices in the U.S. last month.
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