Birkenstock plans to implement a global price increase across its footwear lineup in response to tariffs introduced under President Donald Trump’s latest trade policy, the German brand confirmed during its earnings call on Thursday.
The move comes after the US announced a 10% tariff on imports from all countries, with an additional 10% “reciprocal” tariff on European Union goods.
While the EU-specific tariff has been paused for 90 days as trade negotiations proceed, the initial 10% levy remains in place.
To absorb the added cost, Birkenstock CFO Ivica Krolo said the company will roll out a “low single-digit price increase globally” to fully offset the impact. “We’re not raising in one region only, we see it as a global exercise,” Krolo told Reuters.
She added that Birkenstock is less vulnerable to shifting trade policies than many other brands. “With 100% of our production and 96% of our materials sourced from Europe, and no contract manufacturing from Asia, we are comparatively well-positioned,” Krolo said on the earnings call.
Birkenstock said the price hikes will be accompanied by broader efficiency efforts, including streamlining production processes and renegotiating with suppliers to control costs.
When asked by Business Insider for further details, including which products will be affected, when the hikes will take effect, and the exact amount of the increases, a Birkenstock spokesperson declined to comment.
The company’s flagship models, such as the Arizona and Boston, currently retail for around $150 in the U.S. According to Krolo, the pricing structure will remain consistent worldwide, regardless of regional tariff pressures.
Despite the trade headwinds, Birkenstock reported strong quarterly results. Revenue for the period rose 19% year over year to €574.3 million ($643.2 million).
The Americas remained the company’s largest market, generating €312.5 million in sales. The Europe, Middle East, and Africa (EMEA) region followed with €212.8 million, while Asia-Pacific contributed €47.8 million.
When asked by Business Insider for further details, including which products will be affected, when the hikes will take effect, and the exact amount of the increases, a Birkenstock spokesperson declined to comment.
The company’s flagship models, such as the Arizona and Boston, currently retail for around $150 in the U.S. According to Krolo, the pricing structure will remain consistent worldwide, regardless of regional tariff pressures.
Despite the trade headwinds, Birkenstock reported strong quarterly results. Revenue for the period rose 19% year over year to €574.3 million ($643.2 million).
The Americas remained the company’s largest market, generating €312.5 million in sales.
The Europe, Middle East, and Africa (EMEA) region followed with €212.8 million, while Asia-Pacific contributed €47.8 million.
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