Birkenstock Holding plc (BIRK) experienced a sharp pre-market plunge of 6.25% on Thursday, following the release of its fiscal first-quarter results.

The footwear company reported revenue of 401.9 million euros for the quarter, narrowly missing analyst estimates, as cautious consumer spending and uneven regional demand weighed on sales. Additionally, profitability was pressured by U.S. trade tariffs and unfavorable currency exchange rates, with the adjusted EBITDA margin declining to 26.5% from 28.2% a year earlier.

Management indicated that significant headwinds from foreign exchange and tariffs are expected to continue into the second quarter, projecting similar margin pressure of roughly 100 to 150 basis points. While the company maintained its full-year financial guidance and reported earnings per share in line with expectations, the revenue shortfall and ongoing margin concerns appear to have driven the negative investor sentiment in pre-market trading.