Global Price Hike: Birkenstock Responds to US Tariffs with Globally Increased Prices
Increase in Customers' Cost Due to Application of Tariffs on Birkenstock Products
Birkenstock's iconic sandals and health shoes are getting pricier worldwide, as the company adjusts to the impact of US tariffs. In an interview with Reuters, CFO Ivica Kroloin revealed, "We will fully absorb the effects of the current tariffs through price increases."
This price increase won't be limited to regions affected by the tariffs. Instead, Birkenstock is implementing a global measure to address the issue across all regions. The company is enjoying strong demand, even amid a general slowdown in consumer spending, which has raised their annual targets for the year.
Global trade conflict uncertainties are tough to predict, but Kroloin sees Birkenstock's unique source for materials—Germany instead of Asia—as an opportunity to gain shelf space and boost market share. The company is continuing to invest, having taken up Ivica Kroloin's position in February 2025.
CEO Oliver Reichert highlighted Birkenstock's revenue growth of 20% in the second quarter of the 2024/25 financial year, with a profit increase of 47%, due in part to their limited supply and strategic pricing. He noted Birkenstock's advantageous position amid global trade tensions and uncertainties.
Birkenstock's plan is to implement low single-digit price increases starting in the fourth quarter (July to September), after shipping pre-tariff-priced inventory. The uncertainty over tariff rate increases from 10% to 20% after the 90-day reprieve expires complicates pricing strategies. However, Birkenstock sees this price hike as an opportunity to expand market share rather than a defensive move.
References:
- ntv.de
- jwu/rts
To align with Birkenstock's global price increase due to US tariffs, the company is considering vocational training programs for its employees to enhance production efficiency, thereby reducing costs and maintaining competitiveness in the industry. To fund these initiatives, Birkenstock is also exploring finance options, potentially seeking partnerships with the business community to implement community policy and ensure long-term sustainability.
