Birkenstock Boosts Revenue Forecast Amid Strong Demand for Clogs and Shoes
By Reuters
Published: September 25, 2025
In a significant update for the fiscal year 2025, German sandal manufacturer Birkenstock has raised its revenue expectations, reflecting a robust demand for its iconic clogs and shoes among affluent consumers. This surge in interest comes despite the company implementing price increases to counteract the effects of tariffs on European imports.
Strong Sales Projections
Birkenstock now anticipates sales to reach at least 2.09 billion euros (approximately $2.45 billion), marking a projected growth of around 17.5% at constant currency rates compared to the previous year. This optimistic outlook is a revision from earlier forecasts, where the company had indicated a revenue growth range of 15% to 17%.
The company expects to record at least 520 million euros in sales during the fourth quarter, which would represent an 18% increase year-on-year for that three-month period. This growth trajectory underscores the brand’s resilience in a competitive market, particularly as it navigates the challenges posed by rising production costs.
Navigating Tariffs and Price Increases
To mitigate the impact of a 15% tariff imposed on European imports into the United States, Birkenstock has raised prices on its products. Notably, the popular suede leather Boston clogs are now priced as high as $275 online. Despite these increases, consumer demand remains strong, indicating that the brand’s loyal customer base is willing to invest in quality footwear.
Birkenstock’s commitment to maintaining high manufacturing standards is evident, as the company produces approximately 95% of its shoes in Germany. This focus on local production not only supports the German economy but also allows for greater control over quality and supply chain logistics.
Strategic Investments in Manufacturing
In a move to enhance its manufacturing capabilities, Birkenstock announced the acquisition of a production facility near Dresden, Germany, for 18 million euros. This new site is expected to be operational by the end of fiscal 2027, further bolstering the company’s production capacity. Such investments are crucial as Birkenstock aims to streamline its operations and reduce production costs in light of external economic pressures.
Financial Health and Future Outlook
Birkenstock has set a target for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth between 31.3% and 31.8% for the fiscal year ending September 30. This ambitious goal reflects the company’s confidence in its business model and market positioning.
The brand’s ability to adapt to changing market conditions, including tariff impacts and consumer preferences, has been a key factor in its sustained growth. As the global economy continues to evolve, Birkenstock’s strategic decisions will be closely watched by industry analysts and investors alike.
Conclusion
Birkenstock’s recent revenue forecast adjustment highlights the brand’s strong market presence and the enduring appeal of its products. As the company navigates challenges such as tariffs and rising production costs, its focus on quality manufacturing and strategic investments positions it well for future growth. With a loyal customer base and a commitment to innovation, Birkenstock is poised to continue its upward trajectory in the competitive footwear market.
