Birkenstock Closes Out 2024 on a High Note, Driven By Solid Wholesale and DTC Sales
Birkenstock shares were up over 7 percent in pre-market trading on Wednesday after the brand reported a strong close to its 2024 fiscal year and Q4 results that beat its expectations.
For the fourth quarter of 2024, revenue increased 22 percent to 456 million euros, which was ahead of prior guidance from the company. Net income was 52 million euros, or 28 cents per share, up from a loss of 15 cents in the same quarter the prior year.
Birkenstock said top-line growth was the result of strong consumer demand across several channels and categories. Birkenstock chief executive officer Oliver Reichert in a statement called out the brand’s progress of expanding into “white space opportunities” like closed-toe silhouettes, orthopedics and outdoor, as well as in strength in the APMA (Asia Pacific, Middle East and Africa) region and via owned retail.
“As we continue to gain the attention of consumers and wholesale partners, we are seeing strong, balanced growth in both our DTC and B2B channels,” Reichert said. “Both of these channels are highly profitable and allow us to maximize our reach, especially into new targeted consumer groups.”
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For the full year, Birkenstock reported a revenue increase of 21 percent to 1.8 billion euros, which included double-digit revenue growth across all geographies. Net profit was 192 million euros, which was up 155 percent from the prior year. EPS was 1.02 euros.
In the Americas, revenues grew 19 percent, driven by DTC and wholesale growth. Birkenstock noted that wholesale growth was particularly strong towards the end of the year in this region, driven by back-to-school and the brand’s 250-year anniversary.
Across all regions, wholesale revenue grew 23 percent in fiscal 2024. Birkenstock noted that more than 90 percent of growth in the category came from existing doors “as key retail partners continue to expand the breadth and depth of their Birkenstock offerings to meet growing consumer demand.” DTC revenue was up 21 percent, making for a 40 percent penetration rate in that channel. In 2024, Birkenstock opened 20 new stores, bringing its total store fleet to 67.
Birkenstock also provided guidance for the 2025 fiscal year. The brand expects revenues to grow between 15 and 17 percent. Adjusted EBITDA margin is expected to be between 30.8 and 31.3 percent, which would be a 50 basis point increase compared to fiscal 2024.
