Birkenstock (NYSE: BIRK) – A Footwear Brand Built for Tariff Resilience and Pricing Power
Birkenstock (NYSE: BIRK) may not be the flashiest name in retail, but its setup right now is one of the more interesting we’ve seen in the consumer space—especially as tariff tensions return to the headlines. While most companies are scrambling to adjust to a potential 10% baseline tariff on U.S. imports, Birkenstock isn’t flinching. The reason? Zero exposure to Asian manufacturing.
According to the company, 95% of its production is based in Germany and 100% across Europe, with 96% of raw materials also sourced from within Europe. That’s an extremely rare position in the footwear industry—and it gives Birkenstock an advantage as trade policy shifts back into focus.
Bank of America seems to agree. Analyst Lorraine Hutchinson just reiterated a Buy rating on the stock and raised her price target to $73, implying more than 26% upside from Friday’s close. The stock is already up 26% over the past six months—more than 33 times the gain of the S&P 500 over the same period—but there still looks to be room to run.
Fiscal Q2 earnings confirmed the momentum is real: Birkenstock beat expectations on both the top and bottom lines, and even announced a modest price increase to help offset any tariff pressure. Management noted that only a low single-digit price hike globally would be required to fully absorb the tariff impact—well within the brand’s historical pricing actions.
This isn’t just about supply chains and tariffs. Birkenstock also benefits from intentional product scarcity and strong brand loyalty, which gives it the pricing power most other consumer brands wish they had. When you can raise prices and not lose customers—and don’t have to worry about reshoring your entire operation—that’s a powerful combination.
With global trade uncertainties back in play and much of the footwear sector on defense, Birkenstock looks like one of the few positioned to play offense.
