Birkenstock's Bold Stride: Defying Tariffs with Style and Strategy
German sandal maker Birkenstock projects increased revenue for fiscal year 2025, citing robust demand for its luxury products among affluent consumers despite price hikes and U.S. tariffs. The company has acquired a facility in Dresden to expand manufacturing, aiming for substantial growth in sales and earnings.
German sandal powerhouse Birkenstock has revised its revenue projections for fiscal year 2025, buoyed by sustained demand for its stylish footwear among affluent buyers. This comes despite price increases intended to counter U.S. tariffs.
Birkenstock's trendy collection, including the costly suede leather Boston clogs, continues to attract high-income consumers in the U.S. The company is now expecting sales to reach at least 2.09 billion euros, marking a 17.5% growth at constant currency rates compared to last year's figures.
In response to increasing production costs, Birkenstock recently acquired a manufacturing facility near Dresden. The new site, expected to be operational by 2027, underscores the brand's strategy to enhance production efficiency and solidify its market position.
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