Baron Focused Growth Fund noted in its Q2 2026 investor letter that Birkenstock's second-quarter sales grew at a mid-double-digit pace, and management reaffirmed all 2026 fiscal year targets despite concerns such as the Middle East conflict, a depreciating dollar, and tariffs. The fund believes that Birkenstock is currently trading at only 15 times next year's estimated earnings, while earnings are projected to grow by 30% and 20% in the next two years, respectively, suggesting the market is overly harsh in its valuation.