By Adria Calatayud and Joshua Kirby
German sandal maker Birkenstock said it expects revenue for the year to be ahead of previous guidance, but reaffirmed its profitability target.
The U.S.-listed company said Thursday that it expects revenue for the fiscal year ending September 30 to be at least 2.09 billion euros ($2.45 billion). That marks an increase of 18% from the prior year, adjusted for currency effects. The company had previously guided for full-year revenue to rise by 15% to 17% at constant currency. For fiscal 2024, the company reported revenue of 1.8 billion euros.
For the fourth quarter of the fiscal year, revenue should come to around 520 million euros, some 18% higher on year, Birkenstock said. The company said it continues to expect an adjusted earnings before interest, taxes, depreciation and amortization margin of 31.3%-31.8% for fiscal 2025, despite unfavorable currency effects. Full results for the fiscal year will be set out in Friday.
Birkenstock this summer hiked prices of its products in response to the higher trade tariffs placed on European imports to the U.S. by President Trump's administration. The company had seen no negative pushback from those price increases, Chief Executive Oliver Reichert told investors last month.
The company meanwhile said it has acquired a new production facility in its home country. Birkenstock is to pay 18 million euros for the site near Dresden, which it says will boost manufacturing capacity once it becomes operational by the end of fiscal 2027.
"The incremental capacity will support Birkenstock's revenue-growth ambition and allow for more flexibility among product groups," the company said, adding that it will continue to look to buy assets within Europe. The company, whose distinctive footwear have gained a valuable cultural cache, was valued at about $8.6 billion when it went public in 2023.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
September 25, 2025 04:46 ET (08:46 GMT)
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