German footwear brand Birkenstock achieved impressive financial results for the fiscal year ending in September 2023, with a notable 20% increase in revenues. The company reported revenues of €1.492 billion, attributing the growth to a combination of a 6% increase in units sold and a 14% rise in average selling price.

One of the significant factors contributing to Birkenstock’s success was the expansion of its direct-to-consumer channels, which experienced a remarkable increase of 200 basis points, reaching a penetration rate of 40%. This growth was further supported by a substantial 29% increase in direct-to-consumer revenue, on a constant currency basis.

Moreover, Birkenstock’s gross profit margin showed improvement, rising by 180 basis points to an impressive 62.1%. However, the adjusted gross profit margin experienced a slight decrease of 20 basis points to the same percentage. On the downside, the net profit decreased from €187 million to €75 million, and earnings per share dropped from €1.02 to €0.41.

Despite these negatives, there were positive signs in Birkenstock’s financial performance. The adjusted net profit showed an increase, rising from €175 million to €207 million. Additionally, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 11%, reaching €483 million, although the adjusted EBITDA margin dropped slightly from 35.0% to 32.4%.

Birkenstock’s positive revenue development was evident across all regions, with the Americas leading the way, experiencing a significant 21% revenue growth, making it the largest contributor to the overall revenue growth. Europe also delivered strong performance with an 18% revenue growth. The Asia-Pacific, Middle East, and Africa region witnessed the highest growth rates, with reported revenue growth of 24% and constant currency revenue growth of 27%. China and India played vital roles as key growth drivers within this region.

Overall, Birkenstock expressed satisfaction with its financial results and performance in fiscal 2023. CEO Oliver Reichert described it as the company’s most successful year in its 250-year history. Reichert highlighted Birkenstock’s unique business model and engineered distribution network, which enable the company to cater to the fundamental human need for natural walking, rather than simply chasing short-term market or fashion trends.

As a leading footwear brand, Birkenstock has a strong presence and reputation in the industry. To learn more about their products and their commitment to natural walking, please visit their official website: Birkenstock Official Website. Additionally, for more in-depth financial information and details about their fiscal results, you can refer to their official investor relations page: Birkenstock Investor Relations.