(Reuters) -German sandal maker Birkenstock beat third-quarter profit expectations on Thursday, helped by strong full-price sales of its sandals and shoes, and said it was well placed to manage the impact of the 15% U.S. tariff on European imports.
The company’s shares jumped 5% in premarket trading, after it also stuck to its margin forecast for the year despite a “significantly weaker” dollar.
Birkenstock, whose suede leather closed-toe Boston clogs sell at $179.95 each online, has seen firm demand over the past several quarters as wealthy shoppers showed few signs of resistance to price increases.
Sales grew 16% in constant currency terms in the Americas during the quarter, after 20% growth in the previous three months.
Sustained demand and strong full-price sales have also boosted performance at high-end peers such as Ralph Lauren’s Polo t-shirts and Hoka shoes from Deckers Outdoor, as shoppers prioritize sought-after and trendy products.
Birkenstock’s gross profit margin for the quarter ended June 30 jumped 100 basis points to 60.5%.
The company had earlier said it expected to fully offset tariffs impact, helped by a low-single-digit price increase, as it sources and manufactures nearly all of its products in Europe.
It reported quarterly revenue of 635 million euros ($741.49 million), compared with analysts’ average estimate of 636.74 million euros, according to data compiled by LSEG.
On an adjusted basis, it earned 62 euros per share, above the estimate of 60 euros.
Birkenstock maintained fiscal year 2025 revenue growth at the high-end of its forecast range of 15% to 17% in constant currency.
($1 = 0.8564 euros)
(Reporting by Savyata Mishra in Bengaluru; Editing by Shilpi Majumdar)
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