Birkenstock's 2026 Outlook Disappoints as Tariffs and Weak Demand Take Toll

Financial Projections Below Expectations

Birkenstock has issued a disappointing profit forecast for 2026, citing ongoing challenges from US import tariffs and softer consumer demand. The German footwear manufacturer now expects adjusted earnings per share between €1.90 and €2.05, falling short of Wall Street's consensus estimate of €2.08 ¹

Revenue Growth and Margin Pressures

The company projects annual revenue growth between 13% and 15%, which aligns with analyst expectations of 14.1% growth. However, the midpoint of this guidance is slightly below some market expectations. Birkenstock's margins are expected to be squeezed by approximately 100 basis points due to the impact of US tariffs ²

Strategic Responses to Challenges

To mitigate these challenges, Birkenstock has implemented several strategic measures, including price increases, vendor negotiations, manufacturing efficiencies, and product optimization. These efforts aim to counterbalance the negative effects of the tariffs and maintain profitability.

Market Reaction

The news led to an immediate market response, with Birkenstock's shares dropping by nearly 5% in early trading following the announcement. This reaction underscores the significance of the tariff-related challenges facing the company and the premium footwear sector more broadly.