Birkenstock Ups Revenue Forecast as Premium Sandal Demand Drives Shares Higher
Birkenstock’s Financial Performance and Market Drivers
Strong Demand and Share Price Surge
Aug 13 (Reuters) - Birkenstock raised its full-year sales growth forecast and beat quarterly revenue estimates on Thursday, banking on resilient full-price demand for its premium sandals from affluent shoppers, sending its shares up 7% premarket.
Resilience Amid U.S. Discretionary Spending Pullback
Strong pricing power and brand loyalty have helped companies such as Birkenstock that cater to wealthier consumers remain largely insulated from a wider pullback in U.S. discretionary spending affecting much of the apparel and footwear sector.
Product and Channel Performance
Premium Product Demand
Demand for the company's high-end sandals, clogs and closed-toe shoes has remained resilient for the quarter, while its expanding direct-to-consumer business and retail footprint have helped drive growth across regions.
Direct-to-Consumer Sales
Direct-to-consumer sales, or sales made via its own stores and website, rose 14% and accounted for nearly 39% of quarterly revenue.
Regional Performance and Market Uncertainties
Middle East and Gulf Market
The Middle East conflict is still a source of uncertainty in the Gulf market, but the impact on the quarter was more contained than initially anticipated, the company said.
Growth Across Regions
Its Asia-Pacific sales jumped 18% on a reported basis during the quarter, while the Americas grew 11% and EMEA rose 15%.
CEO Commentary
"EMEA delivered strong results and APAC remains on track to grow at twice the pace of the other segments for the full year," CEO Oliver Reichert said.
Updated Forecasts and Financial Results
Revenue Growth Outlook
Birkenstock now expects fiscal year 2026 revenue growth of 15% on a constant currency basis, compared with its earlier forecast of a 13% to 15% rise.
Quarterly Revenue and Earnings
The company's third-quarter revenue rose 13% to 719.5 million euros ($829.08 million), compared with analysts' estimate of 713.4 million euros, according to data compiled by LSEG.
It earned 0.74 euro per share on an adjusted basis, compared with estimates of 0.76 euro per share.
($1 = 0.8678 euros)
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Mrigank Dhaniwala and Devika Syamnath)
