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- Birkenstock is raising the prices of its shoes to mitigate the effect of Trump's tariffs.
- Its finance chief said the company will implement a "low single-digit price increase globally."
- The company said hikes will be rolled out globally, not just in the US.
Birkenstock will be increasing the prices of its shoes globally to offset President Donald Trump's tariffs.
Representatives for the German footwear brand talked about price hikes in its latest earnings call on Thursday.
The company's finance chief, Ivica Krolo, said Birkenstock will need a "low single-digit price increase globally" for a "full offset of tariff impact."
She said the brand is less exposed to tariff impact "with 100% of our production and 96% of our materials sourced from Europe and no contract manufacturing from Asia."
Per Trump's announcement on April 2, 10% tariffs would be applied to goods from all countries entering the US. Goods from the European Union would be subjected to an additional 10% "reciprocal" tariff.
But on April 9, Trump announced a 90-day pause on the additional tariffs to allow room for trade negotiations.
Krolo said tariffs in the US would not change Birkenstock's global pricing structure. Its popular models, like the Arizona and Boston, are priced at around $150.
"We will be fully offsetting the effects from current existing tariffs," Krolo told Reuters in an interview. "We're not raising in one region only, we see it as a global exercise."
In addition to raising prices, the brand is also offsetting the impact of tariffs by making its production more efficient and negotiating with vendors, Krolo said in the earnings call.
In response to BI's query about how much the cost of the shoes would increase, when the hikes would be implemented, or which models would see hikes, a representative for Birkenstock said he could not provide further details.
Birkenstock posted a 19% increase its its latest quarterly revenue compared to the year before, reporting sales of 574.3 million euros, or $643.2 million.
The Americas accounted for a majority of Birkenstock's sales last quarter, with 312.5 million euros.
Its second largest market was Europe, the Middle East, and Africa, where it earned 212.8 million euros in sales. Finally, 47.8 million euros came from the Asia Pacific region.
May 16, 5.27 a.m. — This story has been updated to reflect comments from a Birkenstock representative.