Birkenstock maintains annual forecasts despite tariff pressures and margin hits
The German sandal maker reaffirmed its annual targets today despite rising tariff costs. Strong holiday demand and price hikes helped offset margin pressures.
Insights:
Birkenstock Holding plc warned on Thursday that continued tariff pressures have reduced its adjusted gross profit margin, even as the company reiterated its full-year financial targets. The footwear manufacturer reported that its adjusted gross profit margin for the first quarter fell to 57.4%, compared to 60.3% in the same period a year earlier. Management specifically quantified a 130-basis-point hit to margins resulting from United States 
US tariffs, a development that contributed to an approximate 4% drop in the company's share price following the announcement.
US tariffs, a development that contributed to an approximate 4% drop in the company's share price following the announcement.
