How are U.S. tariffs affecting Birkenstock's profits?

U.S. import duties are projected to reduce Birkenstock's annual gross margins by 100 basis points, leading to a fiscal 2026 profit forecast below expectations.

What is Birkenstock's revenue growth forecast for fiscal 2026?

Birkenstock expects annual revenue growth of 13% to 15% in fiscal 2026, which is lower than the growth observed in fiscal 2024 and 2025.

Why did Birkenstock shares fall?

Birkenstock shares dropped after the company issued a fiscal 2026 profit forecast below analyst expectations and indicated a negative impact from U.S. tariffs.

Home / Business and Economy / U.S. Tariffs Hurt Birkenstock Outlook

U.S. Tariffs Hurt Birkenstock Outlook

18 Dec

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Summary

Birkenstock predicts fiscal 2026 profit below expectations.
U.S. import duties are projected to impact gross margins by 100 basis points.
Annual revenue growth is forecast to be slower than previous years.

Birkenstock has projected a fiscal year 2026 profit that falls short of Wall Street's predictions, with anticipated annual revenue growth also lower than in recent years. This subdued outlook is largely attributed to the ongoing uncertainty surrounding tariffs, which are beginning to affect demand for the German footwear company's products.

The company anticipates a significant impact on its financial performance, forecasting a 100 basis point hit to its annual gross margins specifically due to U.S. import duties. Birkenstock's shares saw an immediate decline following this forecast, reflecting investor concerns about the company's ability to mitigate these external pressures.

While Birkenstock is implementing strategies like price adjustments and efficiency improvements, the forecast indicates these measures may not fully offset the tariff's financial drag. The company expects adjusted earnings per share to range between 1.90 and 2.05 euros, missing the consensus estimate of 2.08 euros.