21 December 2024
German footwear giant Birkenstock has reported a sharp rise in sales and profits – capitalising on the enduring appeal of its distinctive “ugly” clogs.
German footwear giant Birkenstock has reported a sharp rise in sales and profits – capitalising on the enduring appeal of its distinctive ‘ugly’ clogs
Sales surged by 21 per cnet to £1.5 billion in the year ending September 30, while profits more than doubled to £159 million, driven by strong demand for its closed-toe footwear.
Celebrity endorsements have played a key role in boosting the brand’s popularity.
The £150 suede ‘Boston’ clogs, a favourite of Kendall Jenner and Katie Holmes, have helped propel the 250-year-old company into the fashion spotlight.
Birkenstock also saw a surge in demand for its classic sandals after their appearance in the 2023 Barbie film, starring Margot Robbie.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The Barbie boost may have dissipated but with a long line of A-list celebrities stepping out in Birkenstocks, followers are snapping up pairs.”
She added the firm’s clogs’ appeal is fuelled by an enduring “ugly shoe trend” among Gen Z shoppers, which “shows little sign of fading”.
The results mark Birkenstock’s first full financial year as a public company after its New York Stock Exchange debut in October 2023 with a valuation of £7 billion.
Shares have since climbed nearly 5 per cent and are up by almost two-thirds since the initial public offering.
The company’s chief executive Oliver Reichert said about the stellar sales figures: “I’m proud to be reporting very strong 2024 results.”
Birkenstock has also pledged to expand its portfolio, targeting under-developed categories such as orthopaedic and closed-toe shoes.
The brand is majority-owned by private equity firm L Catterton, backed by luxury conglomerate LVMH, owner of Dior.
English (US) ·