Birkenstock (NYSE:BIRK) reported stronger-than-expected profit for its fiscal third quarter and reaffirmed its full-year guidance, as the historic German footwear maker said it is in a solid position despite elevated U.S. tariffs on European goods.
Famous for its sandals and clogs, the 250-year-old company noted it is “well-positioned” to navigate the 15% levies on many EU exports to the U.S., a rate agreed between Washington and Brussels in late July.
CEO Oliver Reichert stated the company plans to offset the tariffs through “a combination of pricing adjustment, cost discipline and inventory management.”
Birkenstock confirmed its previous guidance for an annual adjusted EBITDA margin of 31.3% to 31.8%, in line with analysts’ expectation of 31.5%. Revenue growth at constant currency is also expected to reach the “high end” of the projected 15% to 17% range.
Operating profit for the quarter ending June 30 rose 27% year-over-year to €198 million, exceeding Bloomberg’s consensus of €182.7 million, with Reichert highlighting that gains were supported by mid-single-digit increases in average selling prices.
Quarterly revenue increased 12% to €635 million, slightly below the forecast of €636.3 million, as higher business-to-business sales were partially offset by weaker demand in the Americas and the direct-to-consumer segment.
Birkenstock shares rose more than 3% in premarket trading on Thursday in the U.S.
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