Frankfurt: Birkenstock outperformed third-quarter profit expectations on Thursday, driven by robust demand for its premium-priced clogs and sandals, sending its shares up 5% in premarket trading. The German footwear giant reported an adjusted profit of 62 euros per share, surpassing estimates of 60 euros, while revenue reached 635 million euros ($741.49 million), slightly below forecasts.
Despite a “significantly weaker” dollar and new 15% U.S. tariffs on European imports, Birkenstock maintained its full-year margin forecast, crediting disciplined pricing and cost controls. The company’s gross margin expanded by 100 basis points to 60.5%, fueled by strong sales of its $180 Boston clogs and other high-end styles.
Birkenstock, which manufactures 95% of its shoes in Germany, plans to mitigate tariff impacts through selective price increases and efficient inventory management. CEO Oliver Reichert confirmed the company had already implemented low single-digit price hikes last quarter.
The Americas, its largest market, saw 16% sales growth (currency-adjusted), though slower than the prior quarter’s 20% surge. The brand’s resilience mirrors trends at luxury peers like Ralph Lauren and Deckers’ Hoka, benefiting from affluent shoppers’ willingness to pay full price.
Birkenstock reaffirmed its fiscal 2025 revenue growth target at the high end of 15%–17%, with an adjusted EBITDA margin steady at 31.3%–31.8%. Analysts view its vertical integration and pricing power as key buffers against trade and currency headwinds.
