Birkenstock Sales Climb as Shoppers Snap Up Its Sandals, Clogs

Birkenstock Holding Plc reported higher sales and profit on strong demand for its pricey sandals and clogs, while predicting a slower pace of growth for the year ahead.

Revenue rose 20 percent to €526 million ($616 million) on a constant currency basis in the three months through September, the US-listed company said Thursday, just above analysts’ average estimate. Sales will probably rise by as much as 15 percent in fiscal 2026, Birkenstock said, implying annual revenue of up to €2.35 billion, slightly below expectations.

Chief executive officer Oliver Reichert is trying to woo investors with his slow-but-steady approach to growth, making sure that consumer demand for Birkenstock’s footwear continues to outpace its production capacity. That’s allowed the company to raise the average selling price of its shoes and avoid markdowns.

Reichert has previously offered conservative financial forecasts early in the year and raised his outlook later.

The company topped estimates in the fiscal year that ended in September, despite the impact of US tariffs and currency swings. It expects those factors to continue to weigh in 2026, it said. Adjusted earnings in 2026 will probably exceed €700 million, which compares with the average analyst estimate of about €758 million, data compiled by Bloomberg show.

Birkenstock’s shares are down about 18 percent this year as investors have largely shied away from footwear companies. Adidas AG and Puma SE shares have fallen even further.

Birkenstock differs from most other shoe companies, however, in that it owns its own factories. Its growth is only limited by the production capacity at its sites and its desire to keep its products relatively scarce, Reichert said in the statement.

The company plans to invest €110 million to €130 million in capital expenditures in 2026, up from the €85 million it spent last year to expand its capacity, it said.

It also plans to repurchase $200 million in stock during the 2026 fiscal year, subject to market conditions, it said.

Birkenstock expects its gross profit margin in 2026 to drop to a range of 57 percent and 57.5 percent, it said, which is below the 59.8 percent average estimate. The company cited headwinds from both currencies and incremental tariffs, which could each impose a 100-basis-point drag, it said.

By Tim Loh

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