Key facts
- Birkenstock raised its full-year revenue growth forecast for fiscal year 2025.
- The company now expects revenue growth between 15% and 17% on a constant currency basis.
- Third-quarter revenue reached 719.5 million euros, exceeding analyst estimates.
- Birkenstock acquired a new production facility for 18 million euros to increase manufacturing capacity.
- The company maintained its target for adjusted EBITDA margin between 31.3% and 31.8%.
German footwear maker Birkenstock has raised its annual revenue growth forecast, driven by strong demand for its premium sandals and trendy styles, particularly from affluent consumers. The company now anticipates fiscal year 2025 revenue growth to be at the higher end of its previously projected range of 15% to 17% on a constant currency basis.
Birkenstock reported third-quarter revenue of 719.5 million euros, surpassing analysts' expectations of 713.4 million euros. The company expects sales to reach at least 2.09 billion euros for the full year, representing approximately 17.5% growth at constant currency rates. Fourth-quarter sales are projected to be at least 520 million euros, an 18% increase year-on-year.
Despite a general pullback in U.S. discretionary spending affecting other apparel and footwear brands, Birkenstock has benefited from its focus on wealthier consumers, strong pricing power, and brand loyalty. The company is also mitigating the impact of a 15% U.S. tariff on European imports through price increases. To further support demand and manage costs, Birkenstock has acquired a new production facility near Dresden, Germany, for 18 million euros, aiming to boost manufacturing capacity.
The company maintained its target for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to be between 31.3% and 31.8% for the fiscal year. Shares of the sandal maker were up 7% in premarket trading following the positive outlook.