Birkenstock Shares Sink Premarket as Company Warns of Tariff Hit

Shares in Birkenstock BIRK -11.34%decrease; red down pointing triangle dropped sharply in premarket U.S. trading after the shoemaker said it expects trade tariffs to weigh on its profit margins in its new fiscal year, and also expects a slowdown in revenue growth.

The German firm, which listed in New York in 2023, said Thursday that it expects adjusted earnings before interest, taxes, depreciation and amortization for its fiscal year, which runs to Sept. 30 next year, of at least 700 million euros ($821.8 million), with a margin of 30.0% to 30.5%. That would represent a compression from an adjusted Ebitda margin of 31.8% for the previous fiscal year.