By Joshua Kirby
Shares in Birkenstock dropped sharply in premarket U.S. trading after the shoemaker said it expects trade tariffs to weigh on its profit margins in its new fiscal year, and also expects a slowdown in revenue growth.
The German firm, which listed in New York in 2023, said Thursday that it expects adjusted earnings before interest, taxes, depreciation and amortization for its fiscal year, which runs to Sept. 30 next year, of at least 700 million euros ($821.8 million), with a margin of 30.0% to 30.5%. That would represent a compression from an adjusted Ebitda margin of 31.8% for the previous fiscal year.
The expected narrower profitability comes in a context of incremental U.S. trade tariffs, as well as a drag from currency effects, Birkenstock said.
In premarket trading, shares changed hands 12% lower at $41.00. At the company's listing two years ago, shares were priced at $46.00.
The company, known for its distinctively clunky footwear, said it expects revenue growth for the year of 10%-12% to 2.30 billion euros-2.35 billion euros, incorporating several basis points of negative currency effects.
A better performance in wholesale than in retail, meanwhile, gives reason for prudence on the brand's momentum, analysts at brokerage Bernstein wrote in a note. The company reported direct-to-consumer sales growth of 11% for the fiscal year, lagging a 20% rise in wholesale.
"Lower fiscal 2026 guidance compounds these concerns," Bernstein said.
For the last fiscal year, tariffs knocked off around 30 basis points each from the group's adjusted Ebitda margin and from its gross margin, which nevertheless both increased from a year earlier. Revenue rose 16% to 2.1 billion euros, ahead of company guidance for 15% growth thanks to strong demand across channels and geographies, it said.
"As we look forward into fiscal 2026, we see a continuation of the strong consumer demand and double-digit growth," Chief Executive Oliver Reichert said.
"Our growth is currently only limited globally by our production capacity and desire to maintain scarcity; consumer demand remains robust globally," Reichert said.
The company said it plans to open around 40 new stores globally next year amid that rise in demand. It will buy back around $200 million of shares, it said.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
December 18, 2025 06:48 ET (11:48 GMT)
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