The trend: Birkenstock and Crocs are turning to international markets for growth in 2026 as tariffs and softer demand make operating in the US more difficult.

• Birkenstock sees opportunities to deepen penetration in European markets like France, Spain, and the United Kingdom, as well as Asia-Pacific countries like China and Japan.
• Crocs expects its namesake brand to generate more revenues internationally than in the US this year.

Zoom out: While both brands remain committed to US growth, the market has become more uncertain.

• Birkenstock faces tariff vulnerability because it manufactures nearly all products in Germany, which the company expects could deliver a 100 basis point hit to margins in fiscal 2026.
• Crocs is trying to minimize discounting and diversify its product assortment as it tries to rebound from a 6.8% YoY revenue decline in North America in 2025.

Implications for the footwear industry: Tariffs pose challenges across the US footwear sector, given that the overwhelming majority of products are imported into the US. Premium brands like Birkenstock may be better able to push through price hikes—but even there, companies must be careful not to alienate shoppers who are weary of higher prices.

While Crocs doesn’t expect to make significant pricing changes this year, the brand’s intent to maximize full-price sales means it will have to work harder to deliver innovative, compelling products.

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