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U.S. Tariffs Hurt Birkenstock Outlook
18 Dec, 2025
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.
