Birkenstock Holding Plc has reported an increase in sales for its premium sandals and clogs while maintaining its annual financial goals, aiming to reassure investors of its ongoing appeal in the market.
In the three months ending December, sales rose by 19 percent to €362 million ($378 million), driven by strong demand in Asia and for closed-toed footwear, surpassing analysts’ expectations of €356 million. The company reiterated its 2025 sales growth forecast of up to 17 percent on a constant currency basis.
However, shares of the company dropped approximately 5 percent in premarket trading in New York, as analysts pointed out that Birkenstock did not revise its outlook and that direct-to-consumer sales growth was lower than anticipated.
Despite the winter months being traditionally slower for Birkenstock, the company has seen success with its expanding range of closed-toe sneakers, boots, clogs, and slippers, which generally have higher price points than their classic sandals. These products performed particularly well during the holiday season, constituting over half of Birkenstock’s business in both the Americas and EMEA regions.
While the partnership with retail outlets remained strong, a 10 percent increase in direct-to-consumer revenue—both online and in physical stores—was below the 14 percent analysts had predicted. This shortfall has raised concerns among some investors regarding the potential loss of brand momentum, according to Edouard Aubin, an analyst at Morgan Stanley.
Birkenstock noted that younger consumers are increasingly returning to shopping centers post-pandemic, which has bolstered sales with retail partners, albeit at the expense of its e-commerce channel.
The company is enhancing its production capabilities in Germany and Portugal while exploring previously untapped markets like China and India, as CEO Oliver Reichert seeks to sustain the brand’s decade-long growth.
Sales in the Asia-Pacific region saw a notable increase of 47 percent, reaching €47 million in the quarter. Birkenstock has recently opened several new company-owned stores in this region, in addition to locations operated by partners.
The brand is also broadening its range of affordable plastic footwear, attracting new customers and encouraging loyal fans to purchase additional pairs suitable for beach and warm weather.
Adjusted earnings before interest, taxes, depreciation, and amortization rose by 25 percent to €102 million, exceeding analyst expectations.
Birkenstock has also confirmed its other 2025 profit margin targets. Many consumer brands are cautious with their forecasts due to uncertainties surrounding trade tariffs and geopolitical issues. Reichert has emphasized a conservative approach to financial projections.
Since its initial public offering in New York in October 2023, Birkenstock shares have increased by about 19 percent, although they have lagged behind the S&P 500 Index. The stock is known for its volatility, particularly on earnings report days.
By Tim Loh
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