German footwear brand Birkenstock's revenues jump 20% in FY23

The revenue growth is attributed to a 6 per cent increase in the number of units sold and a 14 per cent rise in the average selling price (ASP). Direct-to-consumer (DTC) channels have expanded, with penetration growing by 200 basis points to 40 per cent, bolstered by a 29 per cent increase in DTC revenue on a constant currency basis, the company said in a press release.

Birkenstock's gross profit margin improved by 180 basis points to 62.1 per cent, while the adjusted gross profit margin saw a slight decrease of 20 basis points to 62.1 per cent. Net profit, however, declined to €75 million from €187 million, with earnings per share (EPS) dropping to €0.41 from €1.02.

The adjusted net profit showed a positive trend, rising to €207 million from €175 million. Adjusted EBITDA went up by 11 per cent to €483 million, although the adjusted EBITDA margin decreased slightly to 32.4 per cent from 35.0 per cent.

On a regional level, all segments contributed to Birkenstock's positive revenue development. The Americas region led the way with a 21 per cent revenue growth on a reported basis and 20 per cent on a constant currency basis, making it the largest contributor to overall revenue growth in absolute terms. Europe delivered an 18 per cent revenue growth on both a reported and constant currency basis.

The Asia-Pacific, Middle East, and Africa (APMA) region showed the highest growth rates of 24 per cent on a reported basis and 27 per cent on a constant currency basis. China and India were highlighted as key growth drivers.

"We are very pleased with our financial results and performance for fiscal 2023. The past year has been the most successful year in our 250-year long tradition, and we entered our first year as a publicly listed company shortly thereafter. As a footbed company with a unique business model and a proven engineered distribution model, we offer a product with a purpose and that withstands short-term market or fashion trends, because it serves a primal human need—to walk as nature intended,” said Oliver Reichert, CEO of Birkenstock Group.

Fibre2Fashion News Desk (DP)