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Birkenstock Raises Annual Revenue Forecast on Strong Footwear Demand

A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
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Birkenstock Raises Annual Revenue Forecast on Strong Footwear Demand

A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo

Birkenstock raised its annual revenue forecast on Thursday, as the German sandal maker bets on benefits from full-price selling and strong demand for its closed-toe silhouettes and cork-based sandals.
Wholesale retailers are still stocking up on in-demand products like Birkenstock despite a wider effort to cut back on inventory due to waning demand for discretionary items such as footwear.
Demand for Birkenstock's sandals and shoes made of cork also got a boost from Margot Robbie donning a pair of pink Birkens in the movie "Barbie" last year.
The company now expects fiscal 2024 revenue between 1.77 billion euros ($1.91 billion) and 1.78 billion euros, compared with its prior forecast of 1.74 billion euros to 1.76 billion euros.
Birkenstock reported quarterly revenue of 481.2 million euros, compared with market expectations of 466.1 million euros, according to LSEG data.

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LVMH Sales Grow 1% in Second Quarter, Missing Estimates

This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
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LVMH Sales Grow 1% in Second Quarter, Missing Estimates

This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)

LVMH, the world's biggest luxury company, posted a 1% rise in organic sales in the second quarter on Tuesday, missing analyst estimates, and likely adding to investor jitters about slowing growth in the sector.

Sales at the French group, owner of labels Louis Vuitton, Tiffany & Co. and Hennessy, grew to 20.98 billion euros ($22.8 billion), a 1% rise on an organic basis, which strips out currency effects and acquisitions.

The figure fell below analyst expectations for revenues of 21.6 billion euros, according to an LSEG poll based on six analysts.

The report from luxury sector bellwether LVMH, which is Europe's second-largest listed company, worth around 340 billion euros, comes amid concerns about weak sales of designer fashions in the sector's key market, China.

The group's fashion and leather goods division, which includes the Louis Vuitton and Christian Dior brands and accounts for nearly half of group sales and the bulk of operating profit, grew 1%, slowing slightly from the previous quarter's 2% rise.

"While remaining vigilant in the current context, the group approaches the second half of the year with confidence," said LVMH Chairman and Chief Executive Officer Bernard Arnault in a statement.