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Birkenstock Warns Tariffs Will Hurt More in 2026

Birkenstock warned that tariff pressures will erode profitability in fiscal 2026, projecting a 100‑basis‑point decline in both gross margin and EBITDA. The company’s 2025 strategy of front‑loading shipments and modest price hikes will not be repeatable next year. CFO Ivica Krolo said a $10 tariff on a $100 shoe would cut margin to 54.5%, requiring a $25 price increase to preserve profitability—an approach the brand deems unacceptable. Instead, Birkenstock will pursue seasonal, style‑by‑style pricing, efficiency gains, and greater Asia‑Pacific exposure to mitigate the impact.