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 per cent U.S. tariff on European imports.
Shares of the German sandal maker jumped 5 per cent 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 US$179.95 online, have seen firm demand from wealthy shoppers despite price increases, boosting its gross margin by 100 basis points to 60.5 per cent.
The company makes 95 per cent 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 per cent after accounting for currency fluctuations, compared with 20 per cent 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 per cent to 17 per cent, while its expectations for adjusted EBITDA margin - a measure of profitability - remained unchanged at 31.3 per cent to 31.8 per cent.
Reporting by Savyata Mishra in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur, Reuters
