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Birkenstock’s Q2 sales miss on Middle East headwinds

Birkenstock reported second-quarter revenue of 618.3 million euros ($724.22 million) on Wednesday, falling short of analyst estimates of 620.07 million euros ($726.30 million), citing uneven demand and Middle East shipment delays. The German footwear company disclosed a 6 million euro ($7.03 million) hit to its EMEA segment from the conflict, split between undelivered shipments and softened consumer sentiment. Adjusted earnings per share fell 9% to 0.50 euros and gross margin contracted to 53.9% from 57.7%, sending shares down 8% in premarket trading. Despite the challenges, Birkenstock maintained its annual forecasts, with Asia-Pacific leading growth at 22%, followed by EMEA at 10% and the Americas at 4%.

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