Birkenstock Marches Ahead: Boosted Revenue and Expansion Plans
Birkenstock expects revenue of at least 2.09 billion euros for fiscal year 2025, driven by strong demand despite price hikes. The company is expanding its manufacturing capacity and increasing efficiency to counteract tariffs, while maintaining a growth target for adjusted earnings.
German sandal manufacturer Birkenstock has raised its fiscal 2025 revenue expectations, anticipating at least 2.09 billion euros driven by demand from affluent consumers. Despite implementing price increases to counteract a 15% U.S. tariff on European imports, the company's sales remain robust.
Birkenstock has strategically sought to enhance its production efficiencies by acquiring a new facility near Dresden for 18 million euros, set to be operational by fiscal 2027. The firm manufactures 95% of its products in Germany, which includes its popular suede leather Boston clogs retailing up to $275.
The company upheld its goal for adjusted EBITDA growth of 31.3%-31.8% for the fiscal year ending September 30, aligning with its strategy to navigate economic challenges and sustain growth.
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