Feb 12 (Reuters) – Birkenstock stuck to its annual revenue growth target on Thursday and its chief executive said demand in the holiday shopping period was strong, as the German sandal maker confirmed first-quarter revenue figures previously reported in January.
The company, known for its pricey sandals and clogs, has benefited from its strategy to sell its products at full price and limit discounts. Birkenstock has been hiking prices, with its Boston Rivets clogs model now retailing for up to 220 euros, according to its website.
“Our unique business model is designed for resilience,” CEO Oliver Reichert said.
International markets like the Americas and Asia-Pacific, where quarterly revenue grew 5% and 28%, respectively, have remained key growth drivers as Birkenstock also expands store openings.
On Thursday, it reiterated its annual revenue growth target of 13% to 15%. Analysts were expecting growth of nearly 11.6%, according to data compiled by LSEG.
Still, the company, which produces 95% of its shoes in Germany, has been grappling with higher tariff costs like many global firms that make discretionary products.
For the first quarter, the company said adjusted gross profit margin was 57.4%, down from 60.3% last year, hurt by a weaker dollar and a 130-basis-point hit from U.S. tariffs.
It also reported first-quarter revenue of 401.9 million euros ($477.58 million), confirming preliminary numbers that were released last month. Analysts had estimated revenue of 402.1 million euros.
Birkenstock posted a profit of 0.27 euros per share for the first quarter, compared with analysts’ estimate of 0.26 euros per share.
($1 = 0.8415 euros)
(Reporting by Angela Christy in Bengaluru and Helen Reid in London; Editing by Pooja Desai)
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