German brand Birkenstock's revenue grows 19% in Q3 FY24

Top-line growth was the result of strong consumer demand supported by new production capacity and category expansion. Revenue growth benefitted from increased sales of closed-toe silhouettes, which grew at over twice the brand average and closed-toe penetration increased 400 basis points year-over-year.

During the fiscal third quarter, Birkenstock saw strong growth across all segments and channels and continued to benefit from significant geographic expansion, increased usage occasions and distribution white space. The company opened 7 new owned stores, bringing the total number of owned retail stores to 64.

B2B revenue grew 23 per cent year-over-year as wholesale demand, supported by strong sell-through, remains very high. Over 90 per cent of B2B growth came from within existing doors as key retail partners continue to expand the breadth and depth of their Birkenstock offerings to meet growing consumer demand. DTC revenue grew 14 per cent on a constant currency basis in the third quarter of fiscal 2024 against a very strong third quarter of fiscal 2023 (which grew 26 per cent from the fiscal third quarter 2022), resulting in a DTC penetration rate of 40 per cent, the company said in a press release.

In the Americas, strong consumer momentum and demand for the brand continued to drive record sales in the fiscal third quarter of 2024. Birkenstock delivered constant currency revenue growth of 15 per cent in the third quarter, supported by continued growth in both the B2B and DTC channels. B2B growth was driven by over 25 per cent growth in key department store partners, many of whom drove meaningful brand exposure with 250-year anniversary in-store highlight executions and allocated increased space in support of the initiatives.  

In Europe, Birkenstock continues to see market-leading growth and share gains across the region. Revenue in Europe grew 19 per cent on a constant currency basis, driven by strong demand in both the B2B and DTC channels. Better alignment with key retail partners led to increased orders and better sell-through performance throughout the region, with particular strength in France and Benelux, where distributor partners were recently phased out and replaced by healthy direct distribution.

In the APMA region, Birkenstock achieved revenue growth of 41 per cent on a constant currency basis for the fiscal third quarter 2024, due to strong, emergent consumer demand throughout the region. The company opened 4 new owned stores, including 3 in India and 1 in Japan, bringing the total in the APMA region to 23. Additionally, the company added 10 new mono-brand partner stores, the release added.

“Our results for the third quarter of 2024 once again demonstrate the strength of our business model and our ability to achieve the growth and profitability goals we set out for you during our IPO and recent secondary offering roadshow. We achieved the highest quarterly revenue in our history, driven by unbreakable and growing demand across all segments, channels and categories,” said Oliver Reichert, CEO of Birkenstock Group and member of the board of directors of the company.

“As a Superbrand we are gaining the attention of our key retail partners and their consumers, who are becoming increasingly selective and more intentional in their spending. They are also looking for more physical touch-points with the products. Our Q3 results demonstrate our ability to meet consumer demand and align with shopping patterns while maintaining our disciplined engineered distribution approach, which remains our guiding principle. We remain confident in our ability to deliver on our medium to long-term objectives for mid-to-high teens’ revenue growth, gross profit margin of 60 per cent and Adjusted EBITDA margin of over 30 per cent,” explained Reichert.

In the Americas, strong consumer momentum and demand for the brand continued to drive record sales in the fiscal third quarter of 2024. Birkenstock delivered constant currency revenue growth of 15 per cent in the third quarter, supported by continued growth in both the B2B and DTC channels. B2B growth was driven by over 25 per cent growth in key department store partners, many of whom drove meaningful brand exposure with 250-year anniversary in-store highlight executions and allocated increased space in support of the initiatives.  

In Europe, Birkenstock continues to see market-leading growth and share gains across the region. Revenue in Europe grew 19 per cent on a constant currency basis, driven by strong demand in both the B2B and DTC channels. Better alignment with key retail partners led to increased orders and better sell-through performance throughout the region, with particular strength in France and Benelux, where distributor partners were recently phased out and replaced by healthy direct distribution.  

In the APMA region, Birkenstock achieved revenue growth of 41 per cent on a constant currency basis for the fiscal third quarter 2024, due to strong, emergent consumer demand throughout the region. The company opened 4 new owned stores, including 3 in India and 1 in Japan, bringing the total in the APMA region to 23. Additionally, the company added 10 new mono-brand partner stores.

Fibre2Fashion News Desk (RR)