German sandal maker Birkenstock has today beaten third-quarter profit expectations, helped by strong full-price sales of its sandals and shoes, and said it was well placed to manage the impact of the 15% US tariff on European imports.
The company also stuck to its margin forecast for the year despite a “significantly weaker” dollar.
Birkenstock, whose suede leather closed-toe Boston clogs sell at $179.95 each online, has seen firm demand over the past several quarters as wealthy shoppers showed few signs of resistance to price increases.
Sales grew 16% in constant currency terms in the Americas during the quarter, after 20% growth in the previous three months.
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, as shoppers prioritise sought-after and trendy products.
Birkenstock’s gross profit margin for the quarter ended June 30 jumped 100 basis points to 60.5%.
The company had earlier said it expected to fully offset tariffs impact, helped by a low-single-digit price increase, as it sources and manufactures nearly all of its products in Europe.
It reported quarterly revenue of €635m, compared with analysts’ average estimate of €636.74m, according to data compiled by LSEG.
On an adjusted basis, it earned €62 per share, above the estimate of €60.
Birkenstock maintained fiscal year 2025 revenue growth at the high-end of its forecast range of 15% to 17% in constant currency.
