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Birkenstock Defies Market Woes with 18% Revenue Surge
12 Feb
Summary
- Birkenstock's revenue increased by 18% to €402 million in the last quarter.
- Closed-toe footwear significantly boosted sales during the holiday season.
- The company faces investor skepticism despite strong growth and profitability.
Birkenstock Holding Plc reported an 18% increase in revenue for the three months ending December 31, reaching €402 million. This growth was largely attributed to strong holiday demand for closed-toe footwear, including clogs and boots, supporting the company's strategy to be a year-round brand.
CEO Oliver Reichert's strategy focuses on in-house manufacturing in Germany and controlled distribution. However, investor confidence has wavered, with the stock trading below its IPO price, impacted by broader economic concerns.
The company saw global sales growth, with the Americas up 14%, EMEA at 17%, and Asia-Pacific at 37% on a constant-currency basis. The business-to-business division grew 24%, while direct-to-consumer sales rose 12%.
Birkenstock invested approximately €38 million in capital expenditures, including a new production site. The company aims for €1 billion in incremental revenue over the next three fiscal years, projecting annual growth of up to 15%.
