Birkenstock CEO sticks to annual revenue forecast, cites strong holiday demand

By Angela Christy M

Feb 12 (Reuters) – Birkenstock stuck to its annual growth forecast on Thursday, with its chief executive saying demand in the holiday shopping period was robust, as the German sandal maker confirmed first-quarter targets previously reported in January.

The company, known for its pricey sandals and clogs, has benefited from its strategy to sell its products at full price and limit discounts. Birkenstock has been hiking prices, with its Boston Rivets clogs now retailing for up to 220 euros, according to its website.

“Our unique business model is designed for resilience,” CEO Oliver Reichert said.

International markets like the Americas and Asia-Pacific, where quarterly revenue grew 5% and 28%, respectively, have remained key growth drivers as Birkenstock also expands store openings.

On Thursday, it reiterated its annual revenue growth target of 13% to 15%, against analysts’ estimate of growth of nearly 11.6%, according to data compiled by LSEG.

The annual profit forecast was also reiterated to be in the range of 1.90 euros to 2.05 euros, the midpoint of which is lower than analysts’ estimate of 2.02 euros.

Still, the company, which produces 95% of its shoes in Germany, has been grappling with higher tariff costs like many global firms that make discretionary products.

“Tariffs remain a pressure point for most, and Birkenstock is no different. However, on an underlying basis, their ability to tactfully raise price(s) and further ramping of their new facilities should offer a buffer,” said Simeon Siegel, analyst at Guggenheim Securities.

The company opened 30 stores in 2025 and said it planned to launch 40 more globally in fiscal 2026 as it seeks to expand business and strengthen its strategy of selling directly to consumers through stores and its website.

Shares of Birkenstock dipped 0.8% in premarket trading. The stock fell about 28% in 2025.

For the first quarter, the company said adjusted gross profit margin was 57.4%, down from 60.3% last year, hurt by a weaker dollar and a 130-basis-point hit from U.S. tariffs.

It also reported first-quarter revenue of 401.9 million euros ($477.58 million), confirming preliminary numbers that were released last month. Analysts had estimated revenue of 402.1 million euros.

The U.S. consumer economy has been moving in opposite directions, with premium brands benefiting from affluent shoppers while value-focused companies grapple with constrained spending from cash-strapped households.

Birkenstock reported profit of 0.27 euros per share for the first quarter, compared with analysts’ estimate of 0.26 euros per share.

($1 = 0.8415 euros)

(Reporting by Angela Christy in Bengaluru and Helen Reid in London; Editing by Pooja Desai)