Birkenstock has beaten market expectations for fourth-quarter results, helped by robust full-price sales of the German footwear maker's pricey sandals in the US and Asia.
With fresh styles becoming a priority for consumers, particularly in its largest market in the Americas, Birkenstock's sandals and closed-toe clogs alike have drawn new customers.
The company's average selling prices across its product range were up 8% in fiscal 2024, in part due to higher sales of clogs, Birkenstock said, adding that closed-toe styles now made up about a third of its business.
Birkenstock reported fourth-quarter revenue of €455.8m, compared with the average analyst estimate of €439.2m, according to data compiled by LSEG.
"The expansion of ranges into more closed-toe silhouette has helped boost revenue, given that they offer multi-season wear," Susannah Streeter, head of money and markets at Hargreaves Lansdown, said.
Birkenstock's shares were volatile in premarket trading, and were last down marginally. The company forecast fiscal 2025 revenue growth below market expectations.
Shoppers have approached non-essential purchases with caution despite cooling inflation, carefully comparing prices, a trend also at play during the ongoing Christmas season.
This has resulted in some softness in expectations from retailers in the US for 2025.
Birkenstock invested in expanding its store presence in markets such as Japan and China, as well as increasing its manufacturing capacity this year to meet global demand.
While this has contributed to a 330-basis point drop in gross margins in fiscal 2024, Birkenstock signaled a recovery in margins in fiscal 2025 as output increases from its new production facilities.
The company forecast fiscal 2025 revenue to increase between 15% and 17%, compared with estimates of 17.5% growth.
On an adjusted basis, Birkenstock earned €0.29 per share beating estimates of €0.26.
