An analyst does not recommend Birkenstock stock. The brand could lose its premium status

Williams Trading does not recommend buying shares of the German footwear manufacturer Birkenstock. Analysts explain that the company is running too many promotional campaigns, which could cause the brand to lose its premium status.

Williams Trading downgraded its recommendation on Birkenstock shares from “buy” to “hold,” CNBC reported.

Analysts also lowered their price target for the company's stock by 4%, to $44. This represents a 13% upside from its closing price on August 3.

Birkenstock runs too many marketing promotions—this is bad for the brand because it could lose its premium status, analysts explain. At the same time, shoppers may lose the incentive to buy products at full price, they add. The brokerage firm revised its rating ahead of the release of Birkenstock’s third-quarter financial results.

It wasn't just analysts at Williams Trading who expressed doubts about Birkenstock's prospects. Two weeks ago, investment bank Seaport Global downgraded the company's stock, according to Yahoo Finance.

Seaport analysts were disappointed by the company’s financial results for the second fiscal quarter, which ended on March 31, 2026, according to Investing.com. According to the results, the company’s revenue increased by 8% year-over-year to €618 million; in constant currency, growth was 14%.

Analysts noted that the second quarter is traditionally a period of repeat orders for apparel and footwear manufacturers. However, Birkenstock’s performance during this period was weaker than in the first quarter, when revenue jumped 11.1% year-over-year (17.8% in constant currency).

Nevertheless, Wall Street is generally bullish on the company’s stock. It has 18 “buy” ratings from analysts, five “hold” ratings, and one “sell” rating. The average price target is $45.90. This represents an 18% upside from the stock’s closing price on August 3.

Since the beginning of the year, Birkenstock's stock price has fallen by about 5%.

Birkenstock CEO Oliver Reichert is trying to convince investors that his steady approach to growth will allow the company to remain popular with consumers for many years to come, Bloomberg reported. His strategy is based on manufacturing products in Germany and strictly controlling where the shoes are sold.

However, Reichert has been criticized for not providing enough information about Birkenstock's performance and outlook, according to the Fashion Network website.

"It's clear that investors don't respond well to statements from companies along the lines of 'trust us, we know what we're doing,'" wrote analysts at Williams Trading.