Birkenstock’s profit view fails to impress as tariff pressures margin

Birkenstock forecasts annual profit below Wall Street expectations on Thursday, in a sign that the German footwear brand is grappling with rising tariff uncertainty.

Shares of the company fell 5% in premarket trading after it flagged a 100 basis points hit ⁠to its annual gross margins from US import duties. The Trump administration has imposed a ⁠15% import tariff on most goods from the EU under a deal reached with the 27-nation bloc in July.

The sweeping US ‍import ‌tariffs have put a strain on business operations and ⁠rattled shoppers struggling with ‌elevated prices of food, furniture and a ‌range of other imported goods. The company, which has most of its production in Germany, has taken up several measures including targeted price hikes, vendor negotiations, manufacturing ‍efficiency and product optimization to counter tariff impact.

Birkenstock now expects adjusted earnings per share between 1.90 and 2.05 ‌euros, ⁠compared ​with expectations of 2.08 euros. The mid-point of ⁠its ​annual revenue growth forecast of 13% to 15% after adjusting for currency fluctuations came in line with ​analysts’ estimates of 14.1% rise.

The company posted quarterly revenue of 526.3 million euros ($616.88 million), ⁠compared with analysts’ average estimate ⁠of 522.6 million euros, according to data compiled by LSEG.