London: German footwear maker Birkenstock posted quarterly revenue that exceeded analyst expectations on Thursday, driven by resilient global demand for its signature sandals and clogs, particularly ahead of the crucial holiday season. However, the company also cautioned that profit and sales growth may soften in the year ahead as external economic pressures take a toll.
Birkenstock reported fourth-quarter revenue of €526.3 million (approximately $616.9 million), slightly above the market consensus estimate and signaling ongoing strength in its premium footwear business. Sales were supported by strong consumer appetite for its classic “Arizona” sandals and “Boston” clogs, which continue to attract affluent shoppers despite broader concerns about discretionary spending.
Despite the upbeat top-line figures, Birkenstock’s outlook for fiscal 2026 reflects a more cautious tone. The company forecast that gross profit margins will narrow to between 57% and 57.5%, down from around 59.1% in 2025 a development it attributes partly to the impact of U.S. import tariffs on European goods. This follows a 15% duty imposed on most EU imports into the United States, which has raised costs for many global consumer brands.
Birkenstock also projected adjusted earnings per share in a range slightly below Wall Street expectations, with analysts having anticipated stronger profitability. Annual revenue growth is expected to be more subdued around 13%–15% compared with the faster expansion seen in recent years.
Shares of Birkenstock saw some downward pressure in early trading as investors digested the muted profit outlook and slower growth forecast, despite the robust quarterly performance. The company has taken several steps to mitigate tariff impacts, including targeted price increases, negotiating more favourable supply arrangements, and enhancing production efficiency to protect margins without denting demand.
Analysts characterize the weaker growth outlook as largely driven by external economic conditions such as trade policy and more cautious consumer trends rather than any fundamental weakness in Birkenstock’s brand appeal or product strategy.
In response to evolving market conditions, Birkenstock plans to continue expanding its international retail footprint. The company opened 30 new stores this year and aims to launch approximately 40 additional locations in fiscal 2026, signaling confidence in its long-term growth strategy even amid short-term headwinds.
As Birkenstock navigates tariff pressures and rising costs, its latest results highlight both the resilience of its core business and the challenges facing global consumer brands in a shifting economic landscape. Continued focus on product innovation, operational efficiency, and strategic expansion will be key to sustaining momentum into the new year.