German sandal maker Birkenstock forecasts major sales growth
German sandal maker Birkenstock is once again expecting a significant increase in sales for the current financial year, forecasting sales through September to rise by 17% to 18%.
The forecast was included on Thursday in Birkenstock's first quarterly financial report since the company went public on the New York Stock Exchange in October.
Birkenstock shares in October began trading at below the issue price of $46 and took seven weeks to reach that value again. The company's shares have generally traded above that mark since then.
The figures presented on Thursday are for the company's financial year ending September 2023 and cover the period leading up to Birkenstock's initial public offering.
In the final quarter through the end of September 2023, the company saw turnover increase by 16% to €374.5 million ($408 million), but posted a bottom-line loss of €28.3 million.
The company attributed the losses to the cost of expanding its plant in the north-east German town of Pasewalk.
In the financial year as a whole, Birkenstock sales rose by a fifth to €1.49 billion while profits fell from €187 million to €75 million. The growth in turnover was due to a 6% increase in sales and a 14% rise in the average selling price.
Birkenstock's IPO had been hit by investor concerns about consumer spending, among other things.
The company, which is headquartered in the small town of Linz am Rhein in western Germany, has plans to expand its product range and tap into new markets.
