عربي English Türkçe اردو فارسى
Logo
Latest News
Fashion

Birkenstock Beats Fourth-quarter Revenue Expectations on Strong Demand

FILE PHOTO: A shopper walks past a Birkenstock shoe store in London, Britain, October 11, 2023. REUTERS/Toby Melville/File Photo
FILE PHOTO: A shopper walks past a Birkenstock shoe store in London, Britain, October 11, 2023. REUTERS/Toby Melville/File Photo
TT
TT

Birkenstock Beats Fourth-quarter Revenue Expectations on Strong Demand

FILE PHOTO: A shopper walks past a Birkenstock shoe store in London, Britain, October 11, 2023. REUTERS/Toby Melville/File Photo
FILE PHOTO: A shopper walks past a Birkenstock shoe store in London, Britain, October 11, 2023. REUTERS/Toby Melville/File Photo

Birkenstock beat analysts' expectations for fourth-quarter sales and forecast annual revenue above estimates on Thursday, in the German luxury sandal maker's first results since going public, betting on higher pricing and strong demand.
The company's sandals and clogs retail for as much as $350 a pair, and the strong results follow signs of ebbing global luxury demand, as well as lackluster sales expectations from Nike and JD Sports Fashion.
Sales are getting a lift from the company's investments to tap into the post-pandemic move away from formal dressing to more casual and informal wear, mainly in the US.
The company's quarterly revenue rose to 374.54 million euros ($407.7 million) from 321.61 million euros a year earlier, compared with market expectations of 357.39 million euros, according to LSEG data.
The company forecast fiscal 2024 revenue to be between 1.74 billion euros and 1.76 billion euros, compared to analysts' expectations of 1.72 billion euros.
Shares ended 2023 about 19% higher after a disappointing market debut in October.

Most Viewed

 
 
Fashion

Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
TT
TT

Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.