Published by Global Banking & Finance Review®
Posted on August 14, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleBirkenstock exceeded profit expectations due to strong footwear demand, managing U.S. tariffs with price hikes. Sales in Americas grew 16%.
(Reuters) -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% U.S. tariff on European imports.
Shares of the German sandal maker jumped 5% 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%.
The company makes 95% of its shoes at its own factories in Germany and expects to manage the fallout of U.S. tariffs through price increases, cost discipline and inventory management, CEO Oliver Reichert reiterated.
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% after accounting for currency fluctuations, compared with 20% growth in the previous three months.
It reported quarterly revenue of 635 million euros ($741.49 million), compared with expectations of 636.74 million euros, according to data compiled by LSEG.
On an adjusted basis, it earned 62 euros per share, above the estimate of 60 euros.
Birkenstock maintained fiscal 2025 revenue growth at the high-end of its forecast range of 15% to 17%, while its expectations for adjusted EBITDA margin - a measure of profitability - remained unchanged at 31.3% to 31.8%.
($1 = 0.8564 euros)
(Reporting by Savyata Mishra in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur)
Gross margin is a company's revenue from sales minus its cost of goods sold, expressed as a percentage of revenue. It indicates how efficiently a company uses its resources to produce goods.
Adjusted EBITDA margin is a measure of a company's operating performance, calculated by dividing adjusted earnings before interest, taxes, depreciation, and amortization by total revenue. It reflects profitability.
Revenue growth refers to the increase in a company's sales over a specific period. It is often expressed as a percentage and indicates the company's ability to expand its business.
Price elasticity of demand measures how the quantity demanded of a good responds to a change in its price. A high elasticity indicates that demand significantly changes with price fluctuations.
Explore more articles in the Finance category
