Birkenstock, a prominent Germany-based global footwear brand, achieved notable financial success in the fiscal year ending on September 30, 2023, with reported revenues reaching €1.492 billion. This represents a substantial 20% increase in revenue on both reported and constant currency bases compared to the previous year.
The impressive revenue growth is attributed to a 6% rise in the number of units sold and a 14% increase in the average selling price (ASP). The expansion of Direct-to-Consumer (DTC) channels played a significant role, with penetration increasing by 200 basis points to reach 40%. The company highlighted a substantial 29% growth in DTC revenue on a constant currency basis, as stated in an official press release.
Birkenstock experienced positive shifts in its financial metrics, including a notable improvement in the gross profit margin by 180 basis points to 62.1%. The adjusted gross profit margin, while slightly decreased by 20 basis points, remained strong at 62.1%. However, net profit declined to €75 million from €187 million, resulting in earnings per share (EPS) dropping to €0.41 from €1.02.
Despite the decrease in net profit, the adjusted net profit demonstrated a positive trend, rising to €207 million from €175 million. Adjusted EBITDA also increased by 11% to €483 million, although the adjusted EBITDA margin experienced a slight decrease to 32.4% from 35.0%.
On a regional level, all segments contributed to Birkenstock's overall positive revenue development. The Americas region led with a 21% revenue growth on a reported basis and 20% on a constant currency basis, making it the largest contributor to total revenue growth. Europe contributed an 18% revenue growth on both reported and constant currency bases. The Asia-Pacific, Middle East, and Africa (APMA) region showed the highest growth rates of 24% on a reported basis and 27% on a constant currency basis, with China and India identified 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.
