According to the Reuters news agency, Birkenstock wants to increase its prices worldwide by a low single-digit percentage in order to compensate for the effects of US customs policy. The prices are to be increased between July and September.
At the moment, an inch of 10% applies to products from the European Union that are imported into the USA. The initially announced custom of 20% was initially paused for 90 days. “We will completely compensate for the effects of the existing tariffs,” said CFO Ivica Krolo in an interview with Reuters. “We not only increase in one region, but see this as a global measure.” Birkenstock also wants to operate the factories and logistics more efficiently and reduce production costs.
It is extremely difficult to predict the development of the tariffs after July 9, when the break ends. Birkenstock hopes to benefit from politics at the same time because the company mainly produces in Germany. In Asia, many deliveries to the USA had to canceled. “We see this as an opportunity to fill additional shelves and (market) shares, and that is also the reason why we continue to invest,” said Krolo. He asked the EU to conclude an agreement with the United States as quickly as possible. Shining production to the United States is currently not an option for Birkenstock.
