Birkenstock has today surpassed first-quarter revenue expectations as the German sandal maker benefited from the full-price selling of its footwear and rising global demand for more casual cork-based shoes.
The company has bucked a wider slowdown in the high-end footwear space by carving out a niche in the US and Europe through products such as closed-toe silhouettes and newer launches designed to tap strong demand for running shoes.
It has also been able to attract a sizeable customer base that is willing to splurge and has embraced the post-pandemic culture of more casual and informal fashion.
The company's quarterly revenue rose about 22% to €302.9m, compared with market expectations of €288.7m, according to LSEG data.
Birkenstock is investing in a global expansion, including opening more stores in India and China, to increase sales through its own channels, where products are sold at full price unlike at wholesale retailers.
In its IPO filing, the company also outlined plans to capture growing demand in newer and existing markets by rolling out premium mono-brand stores - a single store dedicated to one particular brand - to boost its share in the footwear business.
The company has seen revenue through its own website and stores jump 24% in the first quarter ended December 31.
Expenses tied to investments and rising raw material and labour costs pulled down its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to 26.9% from 29.1% a year earlier.
