11 months ago
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Birkenstock is building up its U.S. business with premium quality products, including its Boston sandal, as well as new sales channels, like stores catered to runners. At the same time, the brand is leaning into market scarcity, which has worked to boost its desirability and margins.
Birkenstock reported its first post-IPO earnings on Thursday, revealing that its revenue for fiscal 2023 increased 20%. The German footwear brand went public on October 11 with shares priced at $36. As of Friday afternoon, its shares were at $46. To ensure product scarcity, Birkenstock has adopted a disciplined approach to distribution through retail partners, which led to wholesale growth of 16% for the year. Direct-to-consumer revenue, meanwhile, increased 29%.
The company’s growth was driven by a 6% increase in number of units sold and a 14% increase in their average selling price. The latter was partly owed to consumers buying into the brand’s more premium products, like the $160 Boston clogs. The Boston clogs, which went viral on TikTok in the fall of 2022, are still going strong.
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