Birkenstock Holding plc (BIRK) shares fell Monday after the footwear company delivered a preliminary update on its fiscal first-quarter performance that came up just short of analyst expectations.

The Currency Problem

Here's the tricky part about operating a global business: sometimes your sales can look great in one currency and disappointing in another. Birkenstock expects fiscal first-quarter 2026 revenue of $468 million, slightly below the consensus estimate of $470.63 million.

But the story gets more interesting when you dig into the numbers. On a reported basis, the company projects first-quarter revenue of 402 million euros, representing 11.1% year-over-year growth. Switch to constant currency terms, though, and growth jumps to 17.8%. That gap exists almost entirely because of the U.S. dollar's depreciation against the euro, which made euro-denominated sales look less impressive when converted back to dollars for reporting purposes.

Recent Performance and Outlook

The miss follows a stronger showing last quarter. In December, Birkenstock reported better-than-expected fourth-quarter fiscal 2025 results, with sales of $615.404 million beating the Street view of $606.670 million.

Looking ahead to the full fiscal year 2026, the company expects adjusted earnings of $2.22 to $2.40 per share, compared with analysts' estimate of $2.30. The company forecast sales of $2.689 billion to $2.747 billion in fiscal 2026, versus the Street view of $2.75 billion.

Birkenstock will report its complete first-quarter fiscal 2026 results on February 12, 2026.

BIRK Price Action: Birkenstock Holding shares were down 3.01% at $42.15 during premarket trading on Monday.