Birkenstock Boosts Full-Year Forecasts on Strong Sales of Premium Footwear

Birkenstock has revised its annual financial forecasts upward, citing robust sales of its premium sandals and closed-toe shoes.

The company reported that sales for the three months ending June 30 reached £614.5 million, a 13% increase that surpassed analyst expectations of £609 million. This growth contributed to an overall rise in profits, which grew by 15% to £114.5 million during the same period.

Birkenstock, founded by Johannes Birkenstock over 250 years ago, noted a particular surge in popularity for its closed-toe footwear. The brand's £155 suede 'Boston' clog has been a notable success, with celebrity endorsements from figures like Kendall Jenner and Katie Holmes. The company also benefited from the continued demand for its sandals, which saw increased visibility following their appearance in the 2023 film "Barbie."

The footwear company experienced growth across all its major markets. Sales in the Asia-Pacific region increased by 18%, while Europe, the Middle East, and Africa saw a 15% rise. This expansion occurred despite a broader economic climate where geopolitical events, such as the conflict in Iran, have reportedly dampened consumer spending for other fashion and footwear brands.

Based on its strong second-quarter performance, Birkenstock has adjusted its annual revenue growth expectation to 15%, an increase from its previous guidance of 13% to 15%. The company maintained its existing annual profit forecast, projecting earnings per share to be between €1.90 and €2.05.

"We performed exceptionally well in the third quarter and once again demonstrated the strength of our brand," said Birkenstock CEO Oliver Reichert. "Our closed-toe share of business continues to expand led by newness in both clogs and shoes. Importantly, we are accomplishing all of this while maintaining our very strong margin profile and cash generation."