By
Bloomberg
Printed
February 20, 2025
Birkenstock Holding Plc reported robust development in its newest quarter, with gross sales of its high-end sandals and clogs gaining momentum, reinforcing the model’s place within the style market.
Income rose 19% year-over-year to €362 million ($378 million) within the three months via December, surpassing analysts’ estimates of €356 million, the corporate stated Thursday. Development was notably robust in Asia, and Birkenstock maintained its 2025 gross sales forecast, anticipating as much as 17% development on a relentless foreign money foundation.
Winter is usually Birkenstock’s slowest season, however the model is seeing robust gross sales from its increasing vary of closed-toe sneakers, boots, clogs, and slippers—typically priced greater than its basic sandals. The corporate stated that these merchandise carried out notably properly throughout the vacation season, accounting for greater than half of Birkenstock’s gross sales in each the Americas and EMEA areas.
Birkenstock is ramping up manufacturing in Germany and Portugal whereas increasing into new markets like China and India, as CEO Oliver Reichert goals to maintain the model’s decade-long development.
Development was notably robust within the Asia-Pacific area, the place gross sales surged 47% to €47 million within the quarter. The corporate has just lately opened a number of new company-owned shops within the area, together with different Birkenstock-branded places owned by companions.
The corporate can also be increasing its providing of cheaper plastic footwear, which is bringing in new prospects and convincing long-time followers to select up additional pairs which are geared towards the seashore and humid climates.
Adjusted earnings earlier than curiosity, taxes, depreciation and amortization rose 25% to €102 million, the corporate stated, greater than analyst estimates.
Birkenstock additionally affirmed its different 2025 earnings targets associated to revenue margins. Many shopper firms are being cautious with their forecasts, given the uncertainty round commerce tariffs and different geopolitical occasions. Reichert has repeatedly stated he desires to be conservative along with his monetary forecasts.
Birkenstock shares are up about 19% since its preliminary public providing in New York in October 2023, trailing the S&P 500 Index. The inventory has been considerably risky, particularly on earnings days.
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