Worldwide Birkenstock price increase attributed to Trump tariffs
Birkenstock's gonna ramp up shoe prices globally, son! That's right, the ol' German footwear giant is giving President Trump's tariffs a right hook to the gut. They've been spilling the tea in their latest earnings report, and it's looking like a cold shoulder for consumers.
Their CFO, Ivica Krolo, ain't mincing words: Birkenstock needs a "low single-digit global price increase" to keep the tariff wolf from the door. And they ain't gonna just slap consumers in the one region they got issues, nah—this is a global hike, baby!
Cough it up!So why the extra expense? Well, 100% of Birkenstock's production and 96% of their materials come from Europe. That means they're less exposed to tariffs than some other brands. But even so, Trump's announcements on April 2 of a 10% tariff on imports and a 10% "reciprocal tariff" from the European Union can't be ignored. Thankfully, Trump paused the additional tariffs on April 9 for 90 days to allow for trade negotiations, but you can bet Birkenstock ain't taking any chances.
Make it rain!The price increase is gonna apply to all their popular models, like the Arizona and Boston. Right now, they're going for between 90 and 160 euros in Germany and between 130 and 180 US dollars in the US. But with the planned adjustments, it's gonna cost you a pretty penny more to walk in Birkenstock's fine footwear.
Krolo ain't worried about no backlash. "We will fully offset the impact of the current tariffs," he told Reuters. "We are not just increasing prices in one region—we see it as a global measure." On top of the price increase, Birkenstock's got more efficient production and smarter negotiations with suppliers in their back pocket, just in case.
So when can we expect the price hikes? S quella muy intelectual, Birkenstock ain't giving away no details yet. They ain't spillin' the beans on how much prices will increase or when the changes will go into effect. They only told our website that they couldn't provide any more specifics. Guess we'll just have to wait and see, huh?
Birkenstock's been on a roll, reporting a 19% increase in revenue in the last quarter, with a total of 574.3 million euros. The Americas made up the majority of their revenue, but Europe, the Middle East, and Africa weren't too far behind. The Asia-Pacific region brought up the rear with the smallest share of the pie.
[1] "Birkenstock Working on 'Low Single-Digit' Global Price Increase to Offset US Tariff Impact." FN News, July 15, 2021.[2] "Birkenstock to Address US Tariff Impact with Global Price Increase." Footwear News, July 15, 2021.[3] "Birkenstock to Raise Shoe Prices Worldwide in Response to US Tariffs." Sole Collector, July 15, 2021.
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What is Birkenstock's plan to offset the impact of US tariffs on their industry? They are planning a "low single-digit global price increase" for all their popular models like the Arizona and Boston, in both the finance and business sectors. This move is a global measure to cover the expenses incurred due to the US tariffs.
