Birkenstock Is Elevating Costs to Offset the Hit From Trump’s Tariffs

Birkenstock will probably be growing the costs of its footwear globally to offset President Donald Trump’s tariffs.

Representatives for the German footwear model talked about value hikes in its newest earnings name on Thursday.

The corporate’s finance chief, Ivica Krolo, mentioned Birkenstock will want a “low single-digit value enhance globally” for a “full offset of tariff affect.”

She mentioned the model is much less uncovered to tariff affect “with 100% of our manufacturing and 96% of our supplies sourced from Europe and no contract manufacturing from Asia.”

Per Trump’s announcement on April 2, 10% tariffs could be utilized to items from all international locations coming into the US. Items from the European Union could be subjected to an extra 10% “reciprocal” tariff.

However on April 9, Trump introduced a 90-day pause on the extra tariffs to permit room for commerce negotiations.

Krolo mentioned tariffs within the US wouldn’t change Birkenstock’s international pricing construction. Its widespread fashions, just like the Arizona and Boston, are priced at round $150.

“We will probably be totally offsetting the consequences from present current tariffs,” Krolo advised Reuters in an interview. “We’re not elevating in a single area solely, we see it as a worldwide train.”

Along with elevating costs, the model can also be offsetting the affect of tariffs by making its manufacturing extra environment friendly and negotiating with distributors, Krolo mentioned within the earnings name.

Representatives for Birkenstock didn’t reply to queries asking how a lot the price of the footwear would enhance, when the hikes could be carried out, or which fashions would see hikes.

Birkenstock posted a 19% enhance its its newest quarterly income in comparison with the yr earlier than, reporting gross sales of 574.3 million euros, or $643.2 million.

The Americas accounted for a majority of Birkenstock’s gross sales final quarter, with 312.5 million euros.

Its second largest market was Europe, the Center East, and Africa, the place it earned 212.8 million euros in gross sales. Lastly, 47.8 million euros got here from the Asia Pacific area.