German footwear brand Birkenstock on Thursday raised its revenue expectations for fiscal year 2025, citing strong demand from affluent shoppers for its clogs and shoes, even as prices continue to rise.
The company now projects annual sales of at least US $ 2.45 billion, representing growth of around 17.5% at constant currency rates compared with the previous year. The New York-listed footwear group had earlier forecast full-year revenue growth at the higher end of its 15% to 17% guidance range.
For the fourth quarter, Birkenstock anticipates revenue of at least US $ 610 million, equivalent to an 18% increase year-on-year for the three-month period.
The company has raised prices to offset the impact of a 15% US tariff on European imports. Despite this, demand has remained robust for some of its most popular models, including the suede leather closed-toe Boston clogs, which retail for up to US $ 275 online.
Manufacturing remains largely concentrated in Germany, where 95% of Birkenstock’s shoes are produced. To improve efficiency and manage rising costs, the company has streamlined operations and invested in logistics. On Thursday, it confirmed the acquisition of a production facility near Dresden for US $ 21 million, aimed at boosting capacity. The site is expected to be operational by the end of fiscal 2027.
Birkenstock reiterated its target for adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) growth of between 31.3% and 31.8% for the financial year ending 30 September.
