Latest news with #OliverReichert
Canada News.Net
3 hours ago
- Business
- Canada News.Net
Birkenstock, Bugaboo, Coach thrive as rich Americans absorb hikes
LONDON, U.K.: For now, America's wealthier consumers appear unfazed by price increases on high-end products, from Birkenstock sandals to Bugaboo strollers, even as tariffs and economic uncertainty push brands to raise prices. German footwear brand Birkenstock has seen "tremendously strong" demand since introducing higher prices on July 1 to offset U.S. import tariffs, CEO Oliver Reichert told analysts this week. "We saw no pushback or cancellations," he said. The resilience mirrors trends across several premium brands. Bugaboo, the Dutch maker of strollers, high chairs, and playpens retailing for more than US$1,000, raised prices by $50 to $300 in May. "In general, we did not see any pushback," said Jeanelle Teves, Bugaboo's chief commercial officer for North America, noting retailers were "open and accepting" of the changes. Coach handbags have also remained popular, with parent company Tapestry reporting 4.6 million new North American customers this year, many from Gen Z and millennial demographics. CEO Joanne Kuvoiserat said the brand expects to maintain profit margins despite tariff pressures. Ralph Lauren likewise raised its annual revenue forecast as shoppers snapped up items like its $398 Polo Bear sweaters. However, CEO Patrice Louvet cautioned that price sensitivity in the second half remains a key unknown. Bank of America data supports the picture of steady luxury spending. The bank reported that middle—and upper-income cardholders spent more in July than a year earlier, even as spending by lower-income customers stayed flat. The bank noted that lower-income households account for only 15 percent of U.S. consumer spending, meaning overall demand could remain strong if higher-income spending holds up. However, some signs of caution are emerging. Procter & Gamble, maker of Tide detergent, noted that even wealthier consumers are becoming more selective in their purchases. Bugaboo manufactures in China and sells through retailers including Target, Nordstrom, and Bloomingdale's, as well as smaller independent stores. Coach's popular Tabby shoulder bag sells for $350, while Ralph Lauren's luxury apparel continues to command high prices. As brands watch the second half of the year unfold, the big question remains whether affluent shoppers will keep absorbing price hikes or begin to pull back in the face of a "broader pricing environment," Louvet said.
Fashion Network
2 days ago
- Business
- Fashion Network
Well-heeled shoppers shrug off price hikes for Birkenstocks and Bugaboo strollers for now
Well -heeled shoppers around the US seem - so far at least - willing to soak up price hikes for aspirational products from trendy Birkenstock sandals to Bugaboo prams, despite the impact of trade tariffs and belt-tightening elsewhere. German sandal and clog brand Birkenstock has enjoyed strong consumer demand with little pushback from US retailers since hiking prices at the start of July, its chief executive said on Thursday. As brands raise prices and cut costs to mitigate the impact of higher US tariffs on their imported products, a key question is the extent to which consumers will be put off and buy less, or simply walk away from purchases. Comments from Birkenstock, Bugaboo, Coach, Ralph Lauren and other brands at the premium end of the market suggest that, so far, affluent consumers are shrugging off price hikes. "We saw no pushback or cancellations following the July 1st price increases implemented in response to tariffs," Birkenstock CEO Oliver Reichert told analysts on a call, adding demand for the brand has been "tremendously strong." Bank of America, the largest consumer facing US bank, said this week that middle- and upper-income earners spent more on their credit cards in July than the same month last year. In contrast, spending among the lowest income bracket remained flat, the bank found. Overall US consumer spending may stay strong, Bank of America said, as long as higher-income individuals keep spending. Lower-income earners account for only 15% of all US consumer spending, according to Bank of America. However, Procter & Gamble, maker of Tide detergent, reported signs of spending cutbacks among higher-income consumers, indicating that shoppers may be becoming more selective with their purchases. Bugaboo, a Netherlands-based maker of expensive baby gear, also raised prices on its strollers, high chairs and play pens by $50-$300 in May because of US tariffs. Retailers were open and accepting. "In general we did not see any pushback. They are like us. They understand it is a fluid situation," Chief Commercial Officer for North America, Jeanelle Teves, said. Bugaboo manufactures in China and sells strollers for more than $1,000 at Target, Nordstrom, Bloomingdales and independent mom and pop stores. Coach handbags also remain in strong demand despite a gloomier economic outlook: the brand drew in more than 4.6 million new customers in North America this year, many of whom are Gen Z and millennials, Tapestry CEO Joanne Kuvoiserat said on Thursday. Coach, whose popular Tabby shoulder bags retail for $350, will maintain its operating profit margin despite the pressure of tariffs, Kuvoiserat said. Ralph Lauren, meanwhile, raised its annual revenue forecast as shoppers snapped up items like its $398 Polo Bear sweaters. But consumers' behaviour in the coming months remains hard to predict, CEO Patrice Louvet highlighted on a conference call with analysts. "The bigger unknown here today is the price sensitivity and how the consumer reacts to the broader pricing environment. So that's what we're watching very closely as we head into the second half."
Daily Mail
2 days ago
- Business
- Daily Mail
Birkenstock shrugs off impact of Donald Trump's tariffs amid buoyed profits
Birkenstock yesterday shrugged off the impact of Donald Trump's tariffs as it reported better-than- expected profits. Chief executive Oliver Reichert said the German company had seen 'no pushback or cancellations' after it raised prices in response to the levies. Birkenstock said its profits for the third quarter to the end of June climbed 16pc to £100million as revenues increased 12 per cent to £546million. It pointed to strong demand for its sandals and shoes, including suede leather Boston clogs that sell for £150 a pair online in the UK, and said it was well placed to manage the hit from a 15 per cent US tariff on European imports. Sales in the Americas grew by 16 per cent but that was down from 20 per cent growth in the previous three months. Birkenstock makes 95 per cent of its shoes at factories in Germany and expects to manage the tariffs through price increases as well as by tightening control on costs and stocks. Reichert said: 'Our third-quarter results prove the strong foundation of our brand.' However, shares fell in early trading after it warned that a weaker dollar would hurt its revenue and profit margins, but it stuck to its annual forecasts for profit margins and revenue. It comes after strong full-price sales have also recently boosted performance at upmarket footwear rivals such as On Holding and Deckers Outdoor, which owns Hoka and Ugg.
Yahoo
3 days ago
- Business
- Yahoo
Birkenstock CEO Says Well-Positioned To Navigate Tariffs, Reaffirms Outlook
Birkenstock Holding (NYSE:BIRK) shares are trading lower on Wednesday. The company reported third-quarter adjusted earnings per share of 70 cents, beating the analyst consensus estimate of 67 cents. Quarterly sales of $720.12 million missed the Street view of $739.49 million.'Reported revenue growth was 12%. On a constant currency basis, we grew revenue by 16%, with double-digit growth in all regions. Underlying demand remains strong and we are on track to meet our target of constant currency growth at the high end of the 15-17% range we provided at the beginning of the year,' said CEO Oliver Reichert. In Euros, revenue totaled 635 million euros, an increase of 12% on a reported basis and 16% in constant currency. Revenue grew double digits across all segments, rising 10% in the Americas, 13% in EMEA, and 21% in APAC on a reported basis. In constant currency, growth was 16% in the Americas, 13% in EMEA, and 24% in APAC. View more earnings on BIRK Gross profit margin was 60.5%, up 100 basis points from 59.5% a year ago. The increase was driven by price adjustments and improved manufacturing capacity absorption, partially offset by unfavorable currency translation and channel mix. The firm reported adjusted EBITDA of 218 million euros, up 17% year-over-year. Adjusted EBITDA margin totaled 34.4%, up 140 basis points from 33.0% a year ago. 'We believe we are well-positioned to manage the impact of the current 15% US/EU tariff agreement through a combination of pricing adjustment, cost discipline and inventory management to protect the long-term health and profitability of the Birkenstock brand,' the CEO added. The company exited the quarter with cash and equivalents worth 261.834 million euros. During the company's conference call, Birkenstock CEO reportedly said the July 1 price increases in the U.S. were met with no pushback or order cancellations from retailers, signaling strong retailer acceptance despite higher prices. Outlook Birkenstock Holding reaffirmed its fiscal year 2025 sales guidance at $2.254 billion. In fiscal year 2025, the company expects an adjusted EBITDA margin of 31.3% to 31.8%, despite a significantly weaker US dollar. Price Action: BIRK shares are trading lower by 3.40% to $48.52 at last check Thursday. Read Next:Photo by Josh Forden via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Birkenstock CEO Says Well-Positioned To Navigate Tariffs, Reaffirms Outlook originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Fashion Network
3 days ago
- Business
- Fashion Network
Birkenstock's profit beats estimates on strong footwear demand at full price
Birkenstock beat third-quarter profit expectations on Thursday on strong demand for its clogs and shoes at full price, and said it was well placed to manage the hit from a 15% US tariff on European imports. Shares of the German sandal maker jumped 5% in premarket trading as it also stuck to its annual margin forecast despite a "significantly weaker" dollar. Birkenstock's suede leather closed-toe Boston clogs, which sell at $179.95 online, have seen firm demand from wealthy shoppers despite price increases, boosting its gross margin by 100 basis points to 60.5%. The company makes 95% of its shoes at its own factories in Germany and expects to manage the fallout of US tariffs through price increases, cost discipline and inventory management, CEO Oliver Reichert reiterated. To offset tariff impact, it had raised prices by low single-digit in the last quarter. Sustained demand and strong full-price sales have also boosted performance at high-end peers such as Ralph Lauren 's Polo t-shirts and Hoka shoes from Deckers Outdoor. Birkenstock's sales in Americas grew 16% after accounting for currency fluctuations, compared with 20% growth in the previous three months. It reported quarterly revenue of 635 million euros ($741.49 million), compared with expectations of 636.74 million euros, according to data compiled by LSEG. On an adjusted basis, it earned 62 euros per share, above the estimate of 60 euros. Birkenstock maintained fiscal 2025 revenue growth at the high-end of its forecast range of 15% to 17%, while its expectations for adjusted EBITDA margin - a measure of profitability - remained unchanged at 31.3% to 31.8%.
