Global Price Hike: Birkenstock Braces for US Tariffs on European Goods
Increase in costs for Birkenstock due to tariffs being passed onto consumers
Gear up for a pinch, sandal lovers! Birkenstock, the renowned footwear brand, is jacking up the prices of its iconic sandals and health shoes worldwide. The reason behind this? To combat the financial repercussions from the 10% tariff slapped on European Union-made goods by the US.
In a candid chat with Reuters, CFO Ivica Kroloin confirmed that Birkenstock will compensate for these tariff costs by implementing a "low single-digit price increase globally." FYI, that means you might end up doling out a bit more for that comfy cork footwear you adore.
But wait, it's not just about the US. Birkenstock is taking this as a global measure. So, it's not just American Birkenstock fans who'll be affected. The price hike is a universal response to the current tariff situation.
The trade conflict dance between the US and the EU can be as unpredictable as a lively salsa, according to Kroloin. Yet, Birkenstock is in luck because it doesn't source its materials from Asia. That gives the brand an edge, and it's happily investing more shelf space and market share.
Birkenstock's shoes are feeling the love in an otherwise lackluster consumer spending environment. Indulging in a touch of self-praise, CEO Oliver Reichert announced that the brand started the 2025 fiscal year on a high note. He boldly claimed that they are cruising towards the top end of their revenue growth target of 15% to 17%. Couple that with a projected adjusted operating profit margin of 31.3 to 31.8%, and you've got a company that's killing it, tariffs or no tariffs.
Despite the import tariffs introduced by none other than Donald Trump, Birkenstock remains unruffled. With its limited supply and strategic pricing, the brand continues to appeal to its customer base amidst the chaos. The second quarter of the 2024/25 financial year saw Birkenstock's revenue shoot up by nearly 20%, while profit soared by a whopping 47%. Talk about financial agility!
[Source: ntv.de, jwu/rts]
- Quarterly Results
- Fashion
Birkenstock, in addressing the financial implications of US tariffs on European goods, has decided to implement a "low single-digit price increase globally" for its products as part of a community policy. This move could also expand vocational training programs for its workforce, as the additional revenue could be allocated towards such initiatives, thereby enhancing the company's technology and business operations.
In light of Birkenstock's robust quarterly results, the brand is now in a position to explore more avenues for investment, such as expanding vocational training programs, in order to maintain its competitive edge in the global footwear market.
