Birkenstock Holding PLC (BIRK) turned in a solid fourth quarter that beat Wall Street's numbers, but the stock still took a hit as currency swings and tariff headaches clouded the outlook. According to Guggenheim Securities, the sandal maker is getting punished for factors largely outside its control.

Analyst Simeon Siegel kept his Buy rating and $60 price target intact, pointing out that Birkenstock actually delivered better-than-expected revenue and managed expenses well enough to cushion the blow from forex and tariff pressures on gross margins. The problem? Those headwinds aren't going away anytime soon, which pushed full-year guidance just below what analysts were hoping for.

Here's where Siegel thinks the market is getting it wrong: Birkenstock continues posting industry-leading revenue growth and margins when you strip out currency fluctuations. "We believe investors dinging the company for wholesale-penetration growing GM pressure is not giving them the credit for the offsetting opex improvement that comes with the channel mix," he wrote.

Translation: Yes, expanding wholesale distribution puts some pressure on gross margins, but the operational efficiency gains from that channel mix are being ignored. Siegel sees Birkenstock as a "strong brand with ongoing whitespace ahead (by channel, product, geography)" and plenty of room to grow.

BIRK Price Action: Shares of Birkenstock Holding had declined by 2.09% to $40.35 at the time of publication on Friday.