Birkenstock to Increase Prices in 2024 Amid Higher Costs

Shares fall after earnings report, but company assures investors of future payoff.

Birkenstock, the German sandal company, announced in its first earnings report as a public company that it will increase shoe prices in 2024 due to higher than expected inflation and costs related to improving factories and ramping up production.
The company reported a loss of about $30 million in its fourth quarter of 2023 and expects further costs in 2024, which will be offset by the price increase.
Despite the price increase, Birkenstock expects its customers, who are now more high-fashion oriented, to remain loyal to the brand.
Shares of Birkenstock fell nearly 10% after the earnings report, but the company assured investors that the higher costs are a one-time occurrence and will pay off in 2025.
Birkenstock plans to invest nearly 150 million euros in retail store expansion and production capacity in 2024.