Birkenstock surpassed market expectations for its fourth-quarter results, driven by strong demand for its premium footwear, and projected a recovery in margins for FY25.
In the year to 30 September, the brand’s sales jumped 21% to €1.8 billion (£1.5 billion) and profits more than doubled to (€191 million) £159 million.
With consumers increasingly prioritising fresh styles, Birkenstock’s iconic sandals and closed-toe clogs have attracted new customers at both its own stores and retail partners.
The company avoided steep holiday season discounting, benefiting from a strong start to global holiday sales.
“The expansion into more closed-toe silhouettes has supported revenue growth by providing multi-season appeal,” noted Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, reported Reuters.
The company reported an 8% rise in average selling prices for FY24, partly due to increased sales of clogs. Closed-toe styles now account for roughly a third of its business.
To meet growing demand, Birkenstock has expanded its global store network and manufacturing capacity, including production ramp-ups at new facilities.
In Birkenstock’s first full year as a publicly listed company, fourth-quarter revenue reached €456 million (£375 million), exceeding analysts’ estimates of €439 million (£361 million), according to data by the London Stock Exchange Group (LSEG).
Headquartered in Linz am Rhein, Germany, Birkenstock was founded in 1774 by Johann Adam Birkenstock, a shoemaker, who began crafting footwear in Langen-Bergheim, a small village in Hesse.
In January, the footwear brand posted its results for the year ending 30 September 2023, marking “the most successful year in the almost 250-year history of the brand” based on revenues.
Its previous year results similarly demonstrated a resilient demand for its product, with double-digit growth across all channels. All segments and channels contributed to the company’s positive revenues. Europe delivered 18% revenue growth on a reported and constant currency basis.
Birkenstock is currently valued at £7 billion on the New York Stock Exchange.
