Known for its orthopedically approved and comfortable sandals, Birkenstock says customers continue to buy its specialized footwear despite inflationary pressures.

German shoe brand Birkenstock Holding (BIRK) raised its forecast for annual profit after a strong quarter, sending its U.S.-listed shares up nearly 6%.

After Thursday's rally, the stock is up 40% from a recent low in April.

Known for its orthopedically approved and comfortable sandals, Birkenstock says customers continue to buy its specialized footwear despite inflationary pressures.

“We expect that the tariff situation may create a unique shift in consumer behavior in the footwear category with a split between the few brands,” CEO Oliver Reichert said, adding that the company is well-positioned to navigate the current uncertain environment.

Birkenstock now expects adjusted EBITDA margins of between 31.3% and 31.8% for its fiscal year ending in February, compared with its previous expectations of 30.8% to 31.3%.

It also said constant currency revenue growth this year will be toward the high end of the guided 15% to 17% range.

Birkenstock’s update comes as several shoe brands, including Nike (NKE) and Crocs, are grappling with uneven consumer demand following President Donald Trump’s tariff announcements last month.

Crocs (CROX), known for its clogs and sandals, recently withdrew its annual forecast, citing sales uncertainty. However, its sales and profit in the last quarter beat Wall Street estimates.

Birkenstock said its revenue rose by a higher-than-expected 19% for its fiscal second quarter, while net profit grew 68%.

On Stocktwits, retail sentiment jumped to 'extremely bullish' from 'neutral' the previous day, and message volume jumped to extremely high.

A few users compared Birkenstock and Crocs. One user struck a cautious tone, saying that Birkenstock's annual sales are less than half that of Crocs, but its market cap is 54% higher. "This won’t end well for BIRK."

Birkenstock was listed on the New York Stock Exchange in October 2023.

Its shares are up nearly 2% year to date.

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