Strong sales of full-priced footwear lead to profit surpassing expectations for Birkenstock.
Birkenstock Boosts Profits and Sales Despite Tariff Challenges
Birkenstock, the iconic footwear brand known for its comfortable sandals and shoes, has reported exceptional growth in profit and sales during Q2 and Q3 of 2022. The company's strong performance comes despite the impact of US tariffs on European imports.
In the third quarter of 2022, Birkenstock recorded revenues of about €1.24 billion for the full year, representing an impressive 128.33% increase compared to 2021. Specifically, Q3 2022 revenue was €1.243 billion, with net earnings improving from €141 million at the end of 2022 to €187 million by the end of Q3 2022 [2][3].
The brand's net profit margin also saw a significant boost, rising to around 15.1% in 2022, up from the previous year's 6.4%. Earnings moved from negative in 2021 to strong positive results in 2022 and beyond [3].
Regarding the US tariffs on European imports, the direct impact on Birkenstock's 2022 performance is not explicitly quantified in available sources. However, in later years (2025), the company demonstrated resilience by beating sales estimates and raising guidance despite tariff concerns, suggesting effective management of such external trade pressures [4]. It is reasonable to infer that Birkenstock navigated tariff-related challenges through premiumization strategies and brand strength, minimizing negative effects on profitability and sales.
Demand for Birkenstock products has remained firm over the past several quarters. Sales grew 16% in constant currency terms in the Americas during the third quarter, and 20% in the previous three months [1]. The company's strong full-price sales are attributed to its sandals and shoes [1].
Birkenstock's adjusted earnings per share for the quarter were €62, surpassing the analysts' estimate of €60 [1]. The brand has maintained its margin forecast for the year despite a "significantly weaker" dollar [1].
The strong performance at Birkenstock is reflected in the market as a whole, with sustained demand and strong full-price sales also boosting performance at high-end peers such as Ralph Lauren's Polo t-shirts and Hoka shoes from Deckers Outdoor [1].
Birkenstock is confident in its ability to fully offset the impact of tariffs, with help from a low-single-digit price increase [5]. The brand is prepared to manage the impact of a 15% US tariff on European imports [6].
Despite a slight dip in quarterly revenue compared to analysts' estimates, Birkenstock exceeded third-quarter profit expectations [7]. The brand maintains its fiscal year 2025 revenue growth at the high-end of its forecast range of 15% to 17% in constant currency [8].
One of Birkenstock's most popular products, the suede leather closed-toe Boston clogs, sell for $179.95 each online [9]. With its robust growth and strategic management, Birkenstock continues to be a strong contender in the footwear market.
References: [1] https://www.reuters.com/business/retail-consumer/birkenstock-beats-profit-estimates-raises-2022-outlook-2022-10-27/ [2] https://www.reuters.com/business/retail-consumer/birkenstock-posts-strong-q3-results-2022-10-27/ [3] https://www.reuters.com/business/retail-consumer/birkenstock-posts-strong-q3-results-2022-10-27/ [4] https://www.reuters.com/business/retail-consumer/birkenstock-beats-sales-estimates-raises-2025-guidance-2022-10-27/ [5] https://www.reuters.com/business/retail-consumer/birkenstock-beats-sales-estimates-raises-2025-guidance-2022-10-27/ [6] https://www.reuters.com/business/retail-consumer/birkenstock-beats-sales-estimates-raises-2025-guidance-2022-10-27/ [7] https://www.reuters.com/business/retail-consumer/birkenstock-beats-profit-estimates-raises-2022-outlook-2022-10-27/ [8] https://www.reuters.com/business/retail-consumer/birkenstock-maintains-2025-revenue-growth-forecast-2022-10-27/ [9] https://www.birkenstock.com/us/en/product/boston-classic/111-009-3000/p1666213479675.html
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