German footwear brand Birkenstock’s revenues jump 20% in FY23

Birkenstock, a leading Germany-based global footwear brand, has reported revenues of €1.492 billion for the fiscal ended September 30, 2023 (FY23), marking a 20% increase on both a reported and constant currency basis compared to the previous year.

The revenue growth is attributed to a 6% increase in the number of units sold and a 14% rise in the average selling price. Direct-to-consumer channels have expanded, with penetration growing by 200 basis points to 40%, bolstered by a 29% increase in DTC revenue on a constant currency basis, the company said in a press release.

Birkenstock's gross profit margin improved by 180 basis points to 62.1%, while the adjusted gross profit margin saw a slight decrease of 20 basis points to 62.1%. Net profit, however, declined to €75 million from €187 million, with earnings per share (EPS) dropped to €0.41 from €1.02.

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The adjusted net profit showed a positive trend, rising to €207 million from €175 million. Adjusted EBITDA went up by 11% to €483 million, although the adjusted EBITDA margin decreased slightly to 32.4% from 35.0%.

On a regional level, all segments contributed to Birkenstock's positive revenue development. The Americas region led the way with a 21% revenue growth on a reported basis and 20% on a constant currency basis, making it the largest contributor to overall revenue growth in absolute terms. Europe delivered an 18 per cent revenue growth on both a reported and constant currency basis.

The Asia-Pacific, Middle East, and Africa region showed the highest growth rates of 24% on a reported basis and 27% on a constant currency basis. China and India were highlighted as key growth drivers.

"We are very pleased with our financial results and performance for fiscal 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,” said Oliver Reichert, CEO of Birkenstock Group.