BIRK Stock Downgraded By Williams Trading – Firm Believes ‘Lack Of Compelling New Product’ Is Affecting Demand

• Williams Trading said sell-through rates are slowing in the Americas, while EMEA faces a disconnect between sell-in and sell-through, most evident at Zalando, according to Investing.com.
• The firm said a “lack of compelling new product” is beginning to prompt wholesale partners in the Americas to pull back, according to The Fly.
• Raymond James lowered its price target to $42 from $52 but maintained ‘Outperform’, citing DTC growth, EMEA performance, wholesale orders and product diversification.

Birkenstock (BIRK) shares were in focus on Friday after Williams Trading and Raymond James lowered their price targets on the stock.

According to The Fly, Williams Trading cut its price target to $27 from $39 and downgraded Birkenstock to ‘Sell’ from ‘Hold,’ saying the company’s fiscal 2028 targets will not be met. Raymond James lowered its target to $42 from $52 but maintained an ‘Outperform’ rating.

BIRK stock traded 4.3% lower at the time of writing.

Williams Trading Flags Promotional Activity, Wholesale Caution

According to The Fly, Williams Trading said Birkenstock’s fiscal 2028 targets will not be met. The firm noted that promotional activity is increasing, especially in Europe, and many of the company’s most loyal wholesale accounts in the Americas are adopting a more tempered approach to their 2027 plans.

Williams Trading also said a “lack of compelling new product” is beginning to cause wholesalers to step back in the Americas, The Fly reported.

Separately, according to a report published by Investing.com, Williams Trading said sell-through rates are decelerating in the Americas, although the market remains clean. In EMEA, the firm said there is a disconnect between sell-in and sell-through, most evident at Zalando.

Williams Trading noted it would not be surprised if Birkenstock tempers its fiscal 2028 targets when fourth-quarter earnings are announced later next month. Birkenstock’s fiscal 2028 outlook calls for revenue of €3.02 billion ($3.40 billion) to €3.183 billion ($3.58 billion) and a three-year constant-currency revenue CAGR of 13% to 15%, according to the report.

Raymond James Cites Growth And Product Diversification

Raymond James cited accelerating direct-to-consumer (DTC) growth, strong EMEA performance, healthy wholesale orders and product diversification as factors supporting Birkenstock’s fourth-quarter guidance and fiscal 2027 EPS of €2.53, according to The Fly.

The firm said the earnings per share (EPS) forecast represents 28% year-over-year growth and is above consensus. Store expansion, e-commerce improvements and lower tariffs were also cited as drivers of potential upside.

Retail View On BIRK

On Stocktwits, retail sentiment toward Birkenstock remained ‘Bearish’, while message volume was ‘Normal’ over the past 24 hours.

BIRK shares have dropped over 18% year-to-date.

(Exchange Rate: €1 = $1.13)

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