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The Guardian
14 hours ago
- Business
- The Guardian
Birkenstock sales step up in ‘ugly shoe summer'
Price rises and strong sales of closed-toe clogs helped the shoe maker Birkenstock beat profit expectations as it became the latest beneficiary of the 'ugly shoe summer'. The German sandal maker said sales rose 16% in the three months to the end of June, if currency fluctuations were excluded. The average price of its products sold rose by about 5% and the number of items sold rose by about 8%. There was demand for its suede leather closed-toe Boston clogs, which sell for as much as £250 and generally cost more than the brand's more well-known sandals, which are priced from £105 for a leather version. Total sales at the company, which listed on the US stock market in October 2023 valued at $7.5bn (£5.5bn), rose 12% to €635m (£546m) in the quarter with net profit up 73% to €129m. This summer there has been an upturn in popularity of quirky footwear, from rubber flip-flops to glove-like fitness shoes that fit each individual toe. However, the 'ugly' footwear brand Crocs last week reported a 30% slump in sales amid new competition from split-toe shoes to flip-flops and Birkenstock's clogs, which come in plastic as well as leather. Known for its cork-lined sandals, Birkenstock pledged to make its offering more varied, with more clogs, trainers, shoes and boots when it launched on the stock market. The company makes 95% of its shoes at its own factories in Germany. Its chief executive, Oliver Reichert, said it was 'well-positioned to manage the impact' of new US import tariffs of 15% on goods imported from the EU. He said the higher costs would be managed through a combination of 'pricing adjustment, cost discipline and inventory management to protect the long-term health and profitability of the Birkenstock brand'. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Reichert said that the company was on track to achieve full-year sales growth at the top end of expectations of 15% to 17%.
The Guardian
a day ago
- Business
- The Guardian
Birkenstock sales step up in ‘ugly shoe summer'
Price rises and strong sales of closed-toe clogs helped the shoe maker Birkenstock beat profit expectations as it became the latest beneficiary of the 'ugly shoe summer'. The German sandal maker said sales rose 16% in the three months to the end of June, if currency fluctuations were excluded. The average price of its products sold rose by about 5% and the number of items sold rose by about 8%. There was demand for its suede leather closed-toe Boston clogs, which sell for as much as £250 and generally cost more than the brand's more well-known sandals, which are priced from £105 for a leather version. Total sales at the company, which listed on the US stock market in October 2023 valued at $7.5bn (£5.5bn), rose 12% to €635m (£546m) in the quarter with net profit up 73% to €129m. This summer there has been an upturn in popularity of quirky footwear, from rubber flip-flops to glove-like fitness shoes that fit each individual toe. However, the 'ugly' footwear brand Crocs last week reported a 30% slump in sales amid new competition from split-toe shoes to flip-flops and Birkenstock's clogs, which come in plastic as well as leather. Known for its cork-lined sandals, Birkenstock pledged to make its offering more varied, with more clogs, trainers, shoes and boots when it launched on the stock market. The company makes 95% of its shoes at its own factories in Germany. Its chief executive, Oliver Reichert, said it was 'well-positioned to manage the impact' of new US import tariffs of 15% on goods imported from the EU. He said the higher costs would be managed through a combination of 'pricing adjustment, cost discipline and inventory management to protect the long-term health and profitability of the Birkenstock brand'. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Reichert said that the company was on track to achieve full-year sales growth at the top end of expectations of 15% to 17%.
