Reuters

BERLIN: German sandal maker Birkenstock raised its expectations for fiscal year 2025 revenue on Thursday, driven by demand for its clogs and shoes from affluent shoppers despite price hikes.&nbsp;Demand for trendy and aspirational products such as Birkenstock&#39;s pricey sandals, popular prams from Bugaboo, as well as Coach&#39;s Tabby handbags, has remained undeterred from higher-income consumers in the United States, even as tariffs and sticky inflation weigh on budgets in lower-income households.&nbsp;Birkenstock has been increasing prices to mitigate the impact of a 15% US tariff on European imports, but demand has been strong for its products, including the suede leather closed-toe Boston clogs, which are priced as high as $275 online.&nbsp;The company, whose shares were up about 6% in premarket trading, now expects sales of at least 2.09 billion euros ($2.45 billion), implying growth of about 17.5% at constant currency rates over last year.&nbsp;The New York-listed sandal maker had previously said it expects full-year revenue growth at the higher end of its forecast range of 15%-17%.&nbsp;At least 520 million euros of sales are set to be recorded in the fourth quarter, which typically ends in September, an 18% growth year-on-year for the three months, Birkenstock said. Full-price demand for its products contributed to a profit beat in the third quarter reported in August.&nbsp;The company, which manufactures 95% of its shoes in Germany, has also sought to make its factories and logistics more efficient and reduce production costs to manage the fallout from the tariffs.&nbsp;On Thursday, the company said it had acquired a production facility near Dresden, Germany, for 18 million euros to boost its manufacturing capacity. The site is expected to be operational by the end of fiscal 2027.&nbsp;Birkenstock maintained its target of 31.3% to 31.8% growth in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending September 30.($1 = 0.8514 euros)

Birkenstock footwear, Birkenstock sandals, Birkenstock stocks

Business

The company expects sales of at least 2.09 billion euros ($2.45 billion), implying growth of about 17.5% at constant currency rates over last year.

Articles tagged with "Birkenstock sales"

Birkenstock lifts sales outlook on demand boost for clogs and shoes