Birkenstock sees muted sales growth and profit as tariffs hurt margins

By Anuja Bharat Mistry

Dec 18 (Reuters) - Birkenstock connected Thursday forecast fiscal 2026 nett beneath Wall Street expectations and yearly gross maturation little than the past 2 ​years arsenic U.S tariffs wounded margins and cautious user spending dampen request for its ‌sandals and clogs.

Its shares fell astir 10% premarket aft the German footwear institution warned of a 100 basis-point deed ‌to its yearly gross margins from U.S. import duties.

Birkenstock, known for its higher-priced "Arizona" sandals and "Boston" clogs, joins a agelong database of planetary user companies whose concern operations person been hobbled by sweeping U.S. tariffs, portion hurting shoppers with elevated prices of food, furnishings and different imported goods.

The Trump ⁠administration had imposed a 15% import ‌tariff connected astir goods from the EU nether a woody reached with the 27-nation bloc successful July.

"In 2026...we expect to spot much interaction from ‍tariffs successful COGS (cost of goods sold) than we did successful 2025," Chief Financial Officer Ivica Krolo said connected a post-earnings call.

The institution was capable to offset astir of the 2025 interaction with targeted terms hikes, ​while besides benefiting from shipping a large stock of its goods for 2025 earlier ‌the tariff hike, Krolo said.

Birkenstock makes a bulk of its products successful Germany and has been focusing connected measures similar raising prices, arsenic good arsenic manufacturing ratio to antagonistic tariff impact.

The institution expects fiscal 2026 gross nett borderline to beryllium successful the scope of 57% to 57.5%, compared with 59.1% successful 2025.

It forecasts adjusted net per stock betwixt 1.90 and 2.05 euros, compared ⁠with expectations of 2.08 euros, according to information compiled ​by LSEG.

The institution expects yearly gross maturation of 13% ​to 15%, excluding currency fluctuations, little than fiscal 2024 and 2025.

"This appears much truthful an illustration of an externality-driven anticipation shortfall, than a concern one," ‍said Simeon Siegel, expert ⁠with Guggenheim Securities.

Birkenstock has been expanding its retail presence, portion besides introducing newer collections and seasonal drops to pull younger affluent shoppers.

The institution opened 30 stores this twelvemonth and ⁠aims to commencement astir 40 much globally successful fiscal 2026.

It posted fourth-quarter gross of 526.3 cardinal euros ($616.88 million), ‌compared with analysts' mean estimation of 522.6 cardinal euros.

($1 = 0.8532 euros)

(Reporting by Anuja ‌Bharat Mistry successful Bengaluru; Editing by Arun Koyyur)