German footwear maker Birkenstock Holding PLC (NYSE:BIRK) reported robust sales and profit for 2025, driven by strong demand for its premium sandals and clogs, but cautioned that growth will slow in the coming year due to production limits and trade-related headwinds.
Revenue for fiscal 2025 rose 18% in constant currency to €2.1 billion, surpassing the company’s guidance range of 15% to 17%. Fourth-quarter revenue climbed 20% in constant currency to €526 million, while the company sold more than 38 million pairs of footwear during the year, up over 12%, with average selling prices increasing 5% in constant currency.
The Americas segment grew 18% in constant currency, reflecting continued appetite for Birkenstock’s higher-priced “Arizona” sandals and “Boston” clogs. The company also expanded its retail footprint, adding 30 stores in 2025 to bring the total to 97, more than doubling its network since its initial public offering.
Despite the strong performance, Birkenstock projected slower revenue growth for fiscal 2026, estimating annual revenue of €2.30–€2.35 billion, below analysts’ average estimate of €2.39 billion. Adjusted EBITDA is expected to reach at least €700 million, down from €757.8 million in 2025.
The company cited production capacity constraints and significant headwinds from US tariffs and foreign exchange fluctuations as key factors. The Trump administration had imposed a 15% import tariff on most goods from the European Union under a deal reached in July. Birkenstock produces most of its products in Germany and has implemented measures such as targeted price increases, vendor negotiations, manufacturing efficiencies, and product optimization to mitigate the impact.
Gross profit margins are forecast at 57%–57.5% for 2026, down from 59.1% last year. Adjusted earnings per share are expected in the range of €1.90–€2.05, below the consensus estimate of €2.08.
Shares fell 8.7% in New York trading to $42.37.