Baron Capital's Q2 2026 investor letter for the Baron Focused Growth Fund highlighted Birkenstock Holding plc, whose shares rose 19.6% in the quarter and contributed 75 basis points to the fund's performance. The fund noted that Birkenstock's sales grew at a mid-teens rate despite concerns about the war in the Middle East, a depreciating dollar, and tariffs, with full-price sell-through above 90% and double-digit same-store sales growth. Management confirmed all fiscal year 2026 targets and continues to execute on growth objectives including expanding retail stores, growing in Asia Pacific, and increasing closed-toe penetration. The fund believes the stock trades at a significant discount to peers at 15 times next year's earnings per share despite expected earnings growth of 30% next year and 20% after that. Birkenstock reported second quarter fiscal 2026 revenue of EUR 618 million, an 8% year-over-year increase on a reported basis.
Birkenstock Holding plcStrong Q2 sales with mid-teens growth, full-price sell-through above 90%, and double-digit same-store sales growth.
