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Birkenstock beat third-quarter profit expectations on Thursday on strong demand for its clogs and shoes at full price, and said it was well placed to manage the hit from a 15 percent US tariff on European imports.
Shares of the German sandal maker jumped 5 percent in premarket trading as it also stuck to its annual margin forecast despite a “significantly weaker” dollar.
Birkenstock’s suede leather closed-toe Boston clogs, which sell at $179.95 online, have seen firm demand from wealthy shoppers despite price increases, boosting its gross margin by 100 basis points to 60.5 percent.
The company makes 95 percent of its shoes at its own factories in Germany and expects to manage the fallout of US tariffs through price increases, cost discipline and inventory management, CEO Oliver Reichert reiterated.
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To offset tariff impact, it had raised prices by low single-digit in the last quarter.
Sustained demand and strong full-price sales have also boosted performance at high-end peers such as Ralph Lauren’s Polo T-shirts and Hoka shoes from Deckers Outdoor.
Birkenstock’s sales in Americas grew 16 percent after accounting for currency fluctuations, compared with 20 percent growth in the previous three months.
It reported quarterly revenue of €635 million ($741.49 million), compared with expectations of €636.74 million, according to data compiled by LSEG.
On an adjusted basis, it earned €62 per share, above the estimate of €60.
Birkenstock maintained fiscal 2025 revenue growth at the high-end of its forecast range of 15 to 17 percent, while its expectations for adjusted EBITDA margin - a measure of profitability - remained unchanged at 31.3 to 31.8 percent.
By Savyata Mishra; Editor: Shilpi Majumdar and Arun Koyyur
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Birkenstock Cracks Down on Fakes in India
Indian court-appointed representatives recently inspected factories to seize suspected counterfeit footwear, after the German brand launched an infringement lawsuit, sources said.
