Published by Global Banking & Finance Review®
Posted on September 25, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleBirkenstock raises its 2025 revenue forecast due to strong demand for its footwear, despite price hikes and tariffs. The company plans to enhance manufacturing efficiency.
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(Reuters) -German sandal maker Birkenstock on Thursday raised its expectations for fiscal year 2025 revenue, driven by demand for its clogs and shoes from affluent shoppers despite price hikes.
The company now expects sales of at least 2.09 billion euros ($2.45 billion), implying growth of about 17.5% at constant currency rates over last year.
The New York-listed company had previously said it expects full-year revenue growth at the higher end of its forecast range of 15%-17%.
At least 520 million euros of sales are set to be recorded in the fourth quarter, an 18% growth year-on-year for the three- month period, Birkenstock said.
The company has been increasing prices to mitigate the impact of a 15% U.S. tariff on European imports. But that has not deterred demand for products including the suede leather closed-toe Boston clogs - priced as high as $275 online.
Birkenstock, which manufactures 95% of its shoes in Germany, has also sought to make its factories and logistics more efficient and reduce production costs to manage the fallout from the tariffs.
On Thursday, the company said it had acquired a production facility near Dresden, Germany, for 18 million euros to boost its manufacturing capacity. The site is expected to be operational by the end of fiscal 2027.
Birkenstock maintained its target of 31.3%-31.8% growth in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending September 30.
($1 = 0.8514 euros)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sonia Cheema)
Revenue growth refers to the increase in a company's sales over a specific period, indicating its ability to expand and generate more income.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operational performance.
Manufacturing capacity refers to the maximum output that a company can produce in a given period, based on its resources and operational efficiency.
Consumer perception is how customers view and interpret a brand or product, which can influence their purchasing decisions.
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