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Birkenstock Holds Full‑Year Outlook as Tariffs and War Disruptions Hit Margins

Rising U.S. import taxes with delivery snags in the Middle East pushed gross margin down 380 basis points.

Overview

  • Following Wednesday's Q2 release, shares fell to new lows after revenue came in at €618.3 million, up 7.7%, and net income dropped 22% with a slight sales miss versus forecasts.
  • Gross margin slid to 53.9% from 57.7% a year earlier, which the company tied to weaker exchange rates, higher U.S. tariffs, and a shift in sales channels.
  • Executives said the average tariff burden in the U.S. has risen from just over 10% to above 20%, and they flagged added margin pressure of about 100 basis points in Q3 and 50 basis points in Q4.
  • The Middle East conflict cut about €6 million from EMEA sales through blocked deliveries and softer European demand, and Birkenstock is rerouting shipments and shifting inventory to faster‑growing APAC, where reported sales rose 22%.
  • CEO Oliver Reichert said a recent Supreme Court development leaves the company with roughly €30 million in potential tariff refunds, though the timing of any repayment remains unclear.