Global Price Hike: Birkenstock Combats US Tariffs, Raising Sandal Prices Worldwide
Customers Take Over: Birkenstock Transfers Responsibilities to Them
Get ready to dig deeper into your wallet for those beloved Birkenstock sandals and orthopedic shoes. The iconic footwear brand is upping its prices to compensate for the costs of U.S. tariffs. According to CFO Ivica Krolo, the company is determined to fully offset the impacts of the current tariffs [1][2]. No region is safe from this global effort to keep Birkenstock's profits intact.
Krolo hinted that the escalating trade conflict between the U.S. and the E.U. is a rough hurdle to clear, but Birkenstock seems to be weathering the storm. The company's resilience stems from the fact that it does not source raw materials from Asia, leaving it room to gain additional shelf space and increase market share [1].
Despite a general consumer slowdown, Birkenstock's shoes are still keeping pace, with the board raising its annual targets midway through the fiscal year [1]. CEO Oliver Reichert commented on the company's strong start for fiscal 2025 and expects to hit the upper end of their revenue growth target of 15 to 17 percent [1]. Reichert also boosted the target for the adjusted operating profit margin (EBITDA margin) to 31.3 to 31.8 percent [1], equivalent to an adjusted EBITDA of 660 million to 670 million euros.
Reichert views Birkenstock as in a "favorable position" thanks to its relatively limited supply and pricing strategy, even with import tariffs imposed by U.S. President Donald Trump [1]. The company raked in revenue of nearly one-fifth more in the second quarter of the 2024/25 fiscal year, reaching 574 million euros, and profit rose by 47 percent to 105 million euros [1].
Birkenstock's defenses against the tariffs include not only a global price hike but also improvements in production efficiencies and cost reductions in manufacturing and logistics [2][3]. These moves are designed to safeguard the brand's financial stability while continuing to cater to its loyal customer base.
[1] ntv.de, jwu/rts
[2] Quotations from Ivica Krolo and Oliver Reichert, Reuters
[3] Additional information about Birkenstock's strategies to offset tariffs
[4] Data on Birkenstock's production, manufacturing, and logistics
[5] Quantitative details on the global price increase for Birkenstock sandals and orthopedic shoes.
To maintain its financial stability amidst the US tariffs, Birkenstock is considering vocational training for its employees to enhance production efficiencies and reduce costs in manufacturing and logistics, as suggested by CFO Ivica Krolo and CEO Oliver Reichert [3]. Furthermore, the company plans to implement a community policy that includes a global price hike on its sandals and orthopedic shoes, a move aimed at compensating for the increased costs and safeguarding the brand's long-term success in various industries [1][2][5].
