Birkenstock reported a record third-quarter revenue, highlighting a 19% year-on-year growth driven by high demand across Europe and Asia. The company’s net profit rose by 18%, reflecting strong consumer interest in its products.
- The footwear brand saw double-digit revenue growth in all regions with an impressive increase of 41% in Asia Pacific, Middle East, and Africa.
- Birkenstock’s wholesale revenue climbed 23% year-on-year, supported by the brand’s expanding retail footprint, adding seven new stores.
- A significant factor in the sales surge was the popularity of Birkenstock’s closed-toe silhouettes, outperforming other product lines.
- CEO Oliver Reichert emphasized the enduring demand for the brand and the strategic distribution approach aligning with consumer patterns.
In the third quarter of 2024, Birkenstock achieved a landmark €565 million revenue, marking a 19% increase from the previous year. This exceptional growth was largely fueled by heightened demand in both European and Asian markets, where the brand’s products continued to captivate consumers.
Birkenstock’s net profit demonstrated parallel success, experiencing an 18% rise to €74.6 million. This financial ascent underscores the company’s robust market presence and adeptness in meeting customer needs across diverse regions. Notably, the revenue increase was broad-based, with significant contributions from various geographic areas. The Americas reported a 15% rise, while the Europe region showed a 19% increase. The most dramatic growth occurred in the Asia Pacific, Middle East, and Africa (APMA) territories, where sales soared by 41%.
The wholesale sector played a crucial role in this financial achievement, with revenues climbing 23% compared to the same period last year. Birkenstock’s direct-to-consumer (DTC) business also saw a commendable uptick of 14%, driven partly by the strategic opening of seven additional stores, bringing the total retail outlets to 64. This expansion underscores the brand’s commitment to enhancing its physical retail presence while catering to evolving shopping habits.
A key driver of Birkenstock’s sales spike was the heightened popularity of its closed-toe mule silhouettes, which grew twofold compared to the company’s average sales growth. This trend highlights shifting consumer preferences and the brand’s ability to swiftly adapt to these changes, ensuring it remains at the forefront of the industry.
The comments from CEO Oliver Reichert further illuminate the successful strategies employed by Birkenstock. He expressed pride in the consistent and growing demand for the brand’s products across all market segments, channels, and categories. Reichert reiterated the effectiveness of the company’s engineered distribution approach, which has proven instrumental in maintaining alignment with consumer purchasing patterns.
Birkenstock’s impressive third-quarter results underscore its strong market positioning and adaptive strategies in a dynamic global environment.
