Birkenstock raised its outlook for the year after it reported record revenues for the second quarter of 2024. The results were driven by strong consumer demand across all regions, channels and categories.
On Thursday, the 250-year-old German footwear brand reported that net revenues rose 22 percent to 481 million euros in the second quarter. Birkenstock said it saw double-digit growth across all regions, including 21 percent growth in the Americas, 21 percent in Europe and 42 percent in Asia Pacific, Middle East and Africa (APMA). Direct-to-consumer revenue in the quarter increased 32 percent while wholesale revenue grew 20 percent in the period, propelled by high sell-through rates.
The company also reported a net profit of 72 million euros in the second quarter, or earnings of 38 euro cents per share. That’s up 45 percent from a profit of 49 million euros, or a profit of 27 euro cents per share the same period last year.
Birkenstock chief executive officer Oliver Reichert said in a statement that the company’s results demonstrate strong demand for the company’s products as well as the strength of its business model. He noted that revenues for the label’s five core silhouettes grew more than 20 percent, which he said was “proof of our limited exposure to fashion cycles and the longevity of our brand’s relevance.”
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“We see strong demand growth in the largely untapped white space areas we have identified across geographies, channels, categories and usage occasions,” Reichert said. “At the same time, we continue to see very strong growth in our established markets and products.”
The company said it continuing to invest in production capacity expansion to meet consumer demand and “and expand in white-space markets.” This investment resulted in a reduction to gross margin and adjusted EBITDA margin by 220 basis points in Q2.
Given the strong results, Birkenstock raised its financial outlook for the fiscal year of 2024 and now expects revenues of between 1.77 and 1.78 billion euros, for a growth of about 19 percent. Adjusted EBITDA is expected to between 535 and 545 million euros, with an adjusted EBITDA margin of between 30 and 30.5 percent.