(Reuters) -Birkenstock missed Wall Street expectations for third-quarter revenue on Thursday, as affluent shoppers curbed spending on the German sandal maker's high-end footwear amid global economic
Birkenstock Surpasses Profit Expectations Amid Strong Footwear Demand
Birkenstock's Financial Performance
(Reuters) -Birkenstock beat third-quarter profit expectations on Thursday on strong demand for its clogs and shoes at full price, and said it was well placed to manage the hit from a 15% U.S. tariff on European imports.
Impact of U.S. Tariffs
Shares of the German sandal maker jumped 5% in premarket trading as it also stuck to its annual margin forecast despite a "significantly weaker" dollar.
Sales Growth in the Americas
Birkenstock's suede leather closed-toe Boston clogs, which sell at $179.95 online, have seen firm demand from wealthy shoppers despite price increases, boosting its gross margin by 100 basis points to 60.5%.
Future Revenue Projections
The company makes 95% of its shoes at its own factories in Germany and expects to manage the fallout of U.S. tariffs through price increases, cost discipline and inventory management, CEO Oliver Reichert reiterated.
To offset tariff impact, it had raised prices by low single-digit in the last quarter.
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.
Birkenstock's sales in Americas grew 16% after accounting for currency fluctuations, compared with 20% growth in the previous three months.
It reported quarterly revenue of 635 million euros ($741.49 million), compared with expectations of 636.74 million euros, according to data compiled by LSEG.
On an adjusted basis, it earned 62 euros per share, above the estimate of 60 euros.
Birkenstock maintained fiscal 2025 revenue growth at the high-end of its forecast range of 15% to 17%, while its expectations for adjusted EBITDA margin - a measure of profitability - remained unchanged at 31.3% to 31.8%.
($1 = 0.8564 euros)
(Reporting by Savyata Mishra in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur)
