Birkenstock has admitted that the Trump administration’s tariffs are now beginning to bite and price increases at the footwear brand are in the works for this year.
The company, like others, said now that most of its pre-tariff products have shipped, U.S. consumers will be paying more for some of its popular sandals, shoes, and boots.
CFO Ivica Krolo said that a simple solution would be to pass tariff costs on to consumers - potentially rising the price of a $100 pair of shoes to $125. For every $100 of product entering the U.S., Birkenstock pays $10 in tariffs, and thus the company has to find $25 elsewhere to keep profit margins steady, Krolo explained.
However, the Germany-based company said that it won’t make this sweeping price increase as it goes against the brand’s values.
“The price increase would have to be 2.5x the tariffs,” Krolo said. “This is not something we would do to our customer, being a democratic brand.”
Instead, the company plans to absorb the tariffs across a variety of channels. It will raise prices based on seasonal reviews and style-by-style decisions, Krolo said.
On the supply-chain side, the company will find ways to offset tariffs by improving the efficiency of manufacturing, figuring out ways to save money on shipments and making changes to the contracts it has with suppliers and vendors.
Those changes will take time to implement, Krolo said. In the meantime, the company believes its Asia-Pacific market will help temper the Trump tariff impact.
Birkenstock tried to keep costs manageable in 2025 with a global price increase this past summer and by shipping as many goods as possible from Europe before tariffs kicked in. The price increases were in the single digits, generally speaking. For example, the brand’s popular Boston clog rose from $150 in May 2025 to $155 in October 2025, where the price remains today.
However, the levies don’t seem to be hampering the company’s growth. Birkenstock opened 30 stores in 2025 and plans to roll out another 40 stores this year, Krolo said. It also plans to improve its customer outreach through various loyalty perks.
“We are working to drive an even stronger connection to our consumers through more targeted membership benefits, a loyalty program, exclusive styles, content and special events,” Krolo said.
The company may have had to face an even more strained 2026 as new tariffs were set to kick in on February 1. However, President Donald Trump backed off those tariffs this week at the World Economic Forum in Davos.
