Birkenstock’s luxury ambitions faced a harsh reality check after soft Q2 results sent shares tumbling to a record low of $32.44, wiping out $5.7 billion in market value. Reported revenue rose 8% to 618 million euros ($719 million), while net income dropped 22.1% to 81.9 million euros ($95 million), as margins shrank under a weak dollar and a 20% US tariff burden. Once trading near $123, Birkenstock now sits at a standard footwear multiple of 13x forward earnings, well below luxury-tier peers. To recover toward analysts’ $56 median price target, the company must hit its 700 million euro ($814 million) adjusted EBITDA guidance and diversify into year-round footwear.

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