'We Must Go on,' Says Lebanese Designer Elie Saab after Blast

Lebanese haute couture fashion designer Elie Saab. (Reuters)
Lebanese haute couture fashion designer Elie Saab. (Reuters)
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'We Must Go on,' Says Lebanese Designer Elie Saab after Blast

Lebanese haute couture fashion designer Elie Saab. (Reuters)
Lebanese haute couture fashion designer Elie Saab. (Reuters)

It felt like an eternity rather than just a few minutes as haute couture fashion designer Elie Saab scrambled to make sure his 200 staff members, including his son, were safe when this month's massive explosion shook Beirut.

Like many Lebanese on Aug. 4 when chemicals at the port detonated, the 56-year-old felt the blast was on his doorstep.

"I saw my son covered in blood, I could not believe it. I said okay, he is wounded, but it was okay, it was just cuts to his head and arms," Saab said.

"But it was 15 minutes that felt like two days long. It was not just because it is a father and son thing, it was because we all work together like one family under one roof."

The explosion killed 178, injured 6,000 and damaged whole neighborhoods.

Saab said his main office and headquarters were badly damaged. His home a few hundred meters from the port, was gutted.

The blast destroyed the shops and ateliers of at least two other designers, Zuhair Murad and Rabih Keyrouz, himself badly injured.

Saab is no stranger to devastation. He started his label in 1982, at the height of Lebanon's 1975-1990 civil war.

The Aug. 4 blast revived those memories.

"It was the same smell, the same dust, the broken glass. Honestly, we did not want to relive this and it was not necessary," he said.

"This is a huge setback but we have to be like Beirut - every time dusting itself off and returning to the way it was," Saab said.

Saab's team plan to go back to their offices from Aug. 20 to meet a deadline for the September Paris couture show.

He also plans to rebuild his residence, with its high ceilings and arches, marble columns and Arabesque tiles. For now, rubble and dust were everywhere.

"We must go on ... It does not become us as Lebanese to give up," Saab said. "That is the doable part. But the biggest loss is the people you can't bring back."

On a table lay a record by singer Fairouz, "Lebanon Forever". It was broken in two.



Birkenstock Results Beat on Resilient Demand, Forecasts Margin Recovery

A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
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Birkenstock Results Beat on Resilient Demand, Forecasts Margin Recovery

A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)

Birkenstock beat market expectations for fourth-quarter results on robust demand for its pricey footwear and forecast a recovery in margins in fiscal 2025, sending the company's shares up 7% on Wednesday.

With fresh styles becoming a priority for consumers, Birkenstock's sandals and closed-toe clogs have drawn new customers both at its own stores and at retailers.

The company bypassed steep discounting trends evident during the holiday shopping season, which Birkenstock executives said was off to a strong start globally.

"The expansion of ranges into more closed-toe silhouette has helped boost revenue, given that they offer multi-season wear," Susannah Streeter, head of money and markets at Hargreaves Lansdown, said.

Germany-based Birkenstock's average selling prices across its product range were up 8% in fiscal 2024, in part due to higher sales of clogs, the company said, adding that closed-toe styles now made up about a third of its business.

The company has invested in expanding its global store presence and increasing manufacturing capacity this year to meet demand.

While it led to a 330-basis point drop in gross margins in fiscal 2024, Birkenstock forecast a recovery in margins in fiscal 2025 as it ramps up production from new facilities.

The company reported fourth-quarter revenue of 455.8 million euros ($478.27 million), compared with the average analyst estimate of 439.2 million euros, according to data compiled by LSEG.

However, Birkenstock's forecast for fiscal 2025 revenue to increase between 15% and 17% was below estimates of 17.5% growth.

"It would appear with this incredibly healthy growth, the company is choosing to adopt a conservative approach that they expect to be able to meet and beat," BMO Capital Markets analyst Simeon Siegel said.

On an adjusted basis, Birkenstock earned 0.29 euro per share, beating estimates of 0.26 euro.