German footwear retailer Birkenstock has reported a record quarter thanks to ramped-up demand for ‘ugly’ clogs

Birkenstock, which is famous for its classic Arizona sandals, reported revenue of €565m (£474.8m) for the three months to June 30, 2024, up 19% on both a reported and constant currency basis year on year.

The footwear retailer said it saw “strong” double-digit growth across all segments, with revenue up 15%, 19% and 41% repsectively in the Americas, Europe and Asia-Pacific, the Middle East and Africa.

Adjusted EBITDA during the period was also up 15% year on year to reach €186m (£156.6m), while net profit rose from €63m (£53m) to €75m (£63.2m).

Birkenstock said the “strong and growing consumer demand” was thanks to increased sales of “closed-toe silhouettes”, including the once-deemed “ugly” Boston clogs, which have dominated footwear trends this year so far.

Wholesale demand also remained “very high” during the quarter as business-to-business revenue grew by 23% year on year.

In terms of outlook, Birkenstock maintained its full-year guidance for revenue growth, adjusted EBITDA margins and medium- to long-term profitability objectives.

Birkenstock chief executive Oliver Reichert said: “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.

“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% and adjusted EBITDA margin of over 30%.”