The dad shoe trend isn’t going anywhere, confirms Birkenstock’s FY report

Birkenstock has today announced its financial results for the year ending 30 September 2023, marking "the most successful year in the almost 250-year history of the brand" based on revenues. It also reveals plans to invest €150 million to expand its brick-and-mortar presence.

Financial highlights for the fiscal year compared to the year prior are as follows:

• Revenues reached £1.28 billion (€1.492 billion), up by 20% on a reported and constant currency basis
• Gross profit margin of 62.1%, an increase of 180 basis points
• Adjusted Gross profit margin of 62.1%, a decrease of 20 basis points
• Net profit stood at £63 million (€75 million), down from £160 million (€187 million)
• Adjusted Net profit stood at £177 million (€207 million), up from £150 million (€175 million)
• Adjusted EBITDA was £414 million (€483 million), up by 11%

Fiscal year results revealed that there was continued demand with double-digit growth across all channels. All segments and channels contributed to the company’s positive revenues. Europe delivered 18% revenue growth on a reported and on a constant currency basis.

Oliver Reichert, CEO of Birkenstock, commented: "We are very pleased with our financial results and performance for fiscal year 2023. The past year has been the most successful year in our 250-year-long tradition, and we entered our first year as a publicly listed company shortly thereafter.

"As a footbed company with a unique business model and a proven engineered distribution model, we offer a product with a purpose and that withstands short-term market or fashion trends, because it serves a primal human need – to walk as nature intended."

Looking ahead to fiscal year 2024, Birkenstock expects financial performance to be driven by substantial growth in geographic and category extension white spaces. Revenues are expected to fall in the range of £1.49 - 1.51 billion (€1.74 - 1.76 billion), reflecting overall revenue growth of 17% to 18% compared to fiscal year 2023.

Adjusted EBITDA is expected to sit between £446 million and £455 million (€520 million and €530 million) on a constant currency basis, resulting in an Adjusted EBITDA margin of approximately 30%.

The company has also revealed plans to invest approximately £128 million (€150 million) of capital into growing production capacity and retail store expansion.