Birkenstock shares climbed on Tuesday after the German footwear company reported first-quarter results that exceeded market expectations.
The company, known for its iconic sandals, said revenue rose 12% year-over-year to €420 million ($450 million), while net profit increased 18% to €85 million. Analysts had forecast revenue of €400 million and profit of €78 million, according to a Refinitiv consensus.
Gross margin expanded to 62%, up from 60% a year earlier, reflecting improved pricing power and operational efficiency. The company attributed the performance to strong demand in Europe and North America, as well as a rebound in wholesale orders.
Birkenstock’s direct-to-consumer sales, including its own retail stores and e-commerce platform, grew 15%, outpacing the broader footwear market. The company also highlighted expansion in Asia, where revenue climbed 9%, driven by growth in China and Japan.
Shares of Birkenstock, which listed on the New York Stock Exchange in October 2023, were up 4.5% in early trading, extending gains from the previous session. The stock has risen nearly 15% since its IPO, outperforming many peers in the consumer discretionary sector.
Analysts at Jefferies reiterated a buy rating on the stock, citing its premium brand positioning and resilient demand. The firm set a price target of $65, implying further upside from current levels.
Birkenstock’s results follow a period of strong performance in the global footwear market, where brands with strong heritage and direct-to-consumer strategies have gained market share. The company’s focus on sustainability and craftsmanship has also resonated with consumers, particularly younger demographics.
The company did not provide full-year guidance in its quarterly update but noted that it expects continued growth in key markets, supported by new product launches and retail expansion.
