Birkenstock starts new fiscal year with 19 percent sales increase

Business

Birkenstock headquarters Credits: Birkenstock

German footwear brand Birkenstock continued its growth trajectory in the first quarter of fiscal year 2024/25. This is evident from the latest figures released on Thursday by the New York Stock Exchange-listed parent company, Birkenstock Holding plc.

In the months from October to December, the group's revenue reached 361.7 million euros. This represents a 19 percent increase compared to the same quarter of the previous year. Wholesale revenue grew by 30 percent to 182 million euros, while retail revenue increased by 11 percent to 178.5 million euros.

Birkenstock records double-digit sales growth across all market regions

Birkenstock once again achieved double-digit growth in all market regions. In the Americas, revenue rose by 16 percent to 210.7 million euros, while in the EMEA region (Europe, the Middle East, and Africa), it increased by 17 percent to 102.8 million euros.

The Asia-Pacific region continued to be the most dynamic, with revenue growth of 47 percent to 47.1 million euros. Birkenstock CEO Oliver Reichert attributed the "exceptionally strong" growth in the region to the accelerated opening of new stores and increased delivery volumes to certain wholesale partners.

Company achieves net profit of approximately 20 million euros

As the proportion of wholesale revenue increased compared to retail, the gross margin decreased from 61.0 to 60.3 percent. Despite this, adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by 25 percent to 102.1 million euros.

The company reported a net profit of 20.1 million euros, compared to a loss of nearly 7.2 million euros in the first quarter of the previous year, primarily due to one-off charges related to the IPO completed in the fall of 2023. Adjusted for special items, net profit increased by 99 percent to 33.3 million euros.

Annual forecasts remain unchanged

In light of the current figures, management maintained its existing forecasts. For 2024/25, the company continues to expect currency-adjusted revenue growth in the range of 15 to 17 percent.

The adjusted EBITDA margin, which was 30.8 percent last year, is expected to reach 30.8 to 31.3 percent. Furthermore, the company anticipates that the gross margin will continue to approach its long-term target of 60 percent.

This article originally appeared on FashionUnited.DE. It was translated to English using AI.

Birkenstock

Birkenstock Holding Plc