Birkenstock exceeded third-quarter profit expectations because customers purchased their footwear at full price despite US tariffs affecting European imports. The German shoemaker achieved adjusted earnings of €0.62 per share above the €0.60 forecast while its revenue reached €635 million slightly below expectations.
The company achieved a 100 basis point increase in gross margin to 60.5% because of strong sales of its €179.95 Boston clogs and other successful models. CEO Oliver Reichert stated that the company encountered no customer resistance following their July 1 price hike which implemented a 15% US import duty.
The company produces 95% of its footwear in Germany and plans to handle tariff effects through pricing strategies and cost management and inventory control measures. The Americas market experienced a 16% year-over-year sales increase with wholesale sales growing faster than direct-to-consumer sales.
The company kept its revenue growth projection at 15–17% for fiscal 2025 while targeting an adjusted EBITDA margin between 31.3% and 31.8%. The stock price decreased by 2.7% because investors worried about how a weaker dollar would affect fourth-quarter revenue and profit margins.
The market analysts explained that Birkenstock achieved its results because high-end footwear customers maintained their purchasing habits in a way that mirrors On Holding and Deckers’ Ugg brand performance.
